New Protections for Electronic Payments
From 7th October 2024, new rules for protecting retail clients have been launched by the Payment Systems Regulator (PSR).
The PSR will now refund eligible claims up to a maximum of £85,000 where the transactions are:
Faster Payments or CHAPS payments made in the UK
From a personal bank account, micro-enterprise or, in some cases, charities.
A claim must be raised within 13 months of the final payment made to a fraudster as part of the same scam.
The PSR won’t assess claims under these rules where the payments:
Are made by cheque, cash, card or made outside the UK
Are to your own account held at another bank
Were for unlawful purposes, for example if you were purchasing something illegal
Are part of a civil dispute.
If your claim is successful, the PSR will put your money back into your account within five working days. In some cases, it may take up to 35 working days to receive a decision. This might happen if the PSR needs to ask for more information.
We welcome this new protection but do warn clients to be very careful when transferring funds to any third party. Find out more about how to protect yourself from financial scams here.