Major bank rule change could see customers have to pay £100 charge from tomorrow
dailyrecord.co.ukBank customers could be slapped with a £100 charge as new fraud rules are set to kick in tomorrow. The proposed changes to the compensation scheme for victims of bank fraud, due to take effect on Monday, October 7, will give banks the option to impose this excess fee.While some banks have outright rejected the idea, others are yet to make their stance known.
The scheme has already faced criticism after the maximum compensation limit was cut from an initial £415,000 down to just £85,000.The aim is to protect countless Brits who've been tricked by fraudsters posing as everyone from HMRC staff to legal professionals and even police officers.
The main objective is to provide a safety net for those fooled into making payments to bogus accounts.Approximately 200,000 UK residents fall victim to what's known as Authorised Push Payment (APP) scams each year, with combined losses estimated at around £460 million in 2023 alone.
However, imposing a £100 excess for fraud under this amount could effectively deny many any compensation.That's because figures from UK Finance show that a significant 32 percent of APP fraud cases involve amounts at or below the £100 threshold.
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