In general, consumers are entitled to a refund when a fraudster siphons off money from their account without their knowledge. In some cases people have been losing life-changing sums of money. Of that, £354m was lost through bank transfer scams in which victims were tricked into transferring money directly from their account to a fraudster – a so-called authorised push payment fraud. The most prevalent type are purchase scams, whereby victims pay in advance for a product or service, such as a car or a holiday rental, which was not received or did not exist.
A voluntary code of conduct for banks comes into force at the end of May and will guarantee refunds for “innocent” victims, although TSB’s new guarantee is likely to go further than this. Separately, TSB is under fire from customers for breaking a pledge not to end a favourable deal offered to account holders in the wake of its IT fiasco last year. This remains the best ongoing current account interest rate in the market. We are in the process of writing to our customers to advise them of the proposed changes.
Click here to read the full article