On 28 February 2019, the Authorised Push Payments (APP) Scams Steering Group (the Steering Group) published the voluntary Contingent Reimbursement Model Code for APP Scams (the Code).
APPs are made when people request their bank or building society (payment services providers (PSPs)) to make a payment from their account to another account. Scams involving APPs occur when consumers are tricked into authorising a payment to an account that they believe belongs to a legitimate payee – but is in fact controlled by a scammer.
The Code sets out the agreed principles for greater protection of consumers and the circumstances in which they will be reimbursed. Under the Code any customer of a bank or PSP signed up to the Code who falls victim to an APP scam will be reimbursed if their bank failed to meet the standards set out in the Code, providing the customer did everything expected of them under the Code.
PSPs who are not members of the Steering Group will be invited to become signatories to the Code before it enters into force. The Steering Group’s aim is for as large a proportion of the PSP market as possible to be covered by the Code upon its implementation. The first group of signatory payment service providers will be announced on 28 May 2019.
From 1 July 2019, the ongoing operation and governance of the voluntary Code will be carried out by the Lending Standards Board.
The Code comes into force on 28 May 2019.