Banks drag feet on vow to refund scam victims

ALMOST half the UK’s leading banks and building societies have still not signed up to a new code that promises refunds to victims of payment scams.

Consumer group Which? says 12 out of 27 organisations, including Clydesdale Bank, Yorkshire Bank, Tesco Bank and Monzo are yet to join the voluntary scheme.

Under the code, members pledge to refund customers who fall victim to push payment fraud and are manipulated into transferring money out of their own accounts by conmen.

Last year a total of £354million – nearly £1million every day – was stolen through this type of fraud.

The code was launched in May after Money Mail campaigned for banks to do more to protect blameless customers.

Previously, banks and building societies were not obliged to refund victims of this type of scam. But customers of organisations that have signed up are now entitled to refunds as long as they have done everything they can to protect themselves.

Banks may still refuse to reimburse customers who ignore scam warnings. Which?

‘Incredibly concerning’

found that brands including Bank of Ireland, Citibank, Clydesdale Bank, Monzo, Post Office Money, Tesco Bank, Co- op Bank, Virgin Money, and Yorkshire Bank were yet to sign up.

A Monzo spokesman said it adheres to the spirit of the code and is in the process of signing up. Danske Bank, First Trust Bank and N26 confirmed they were assessing what signing up to the code involves.

Major providers including Barclays, HSBC, Lloyds Banking Group, NatWest and RBS, Santander UK and Nationwide have already joined.

In April, TSB launched its own guarantee to refund fraud victims.

Which? money editor Jenny Ross said: ‘People’s lives are being derailed every day as life-changing sums of money are lost to bank transfer fraud, so it’s incredibly concerning to see so many banks not yet signed up to this vital code.’

Trade body UK Finance said: ‘The payment service providers which have signed up represent over 85 per cent of authorised push payments. The Lending Standards Board is working with others in preparation for them to join.’