PARLIAMENTARY WRITTEN QUESTION
(10 July 2025)

To ask the Chancellor of the Exchequer, pursuant to the Answer of 12 June 2025 to Question 57938 on Investment: Fraud, what steps her Department is taking to ensure consistency and transparency in how Payment Service Providers determine eligibility for reimbursement under the APP scam regime.

Asked by:
Sarah Bool (Conservative)

In October 2024, the Payment Systems Regulator (PSR) introduced a mandatory reimbursement regime for authorised push payment (APP) scams which take place over the Faster Payments system, as required by the Financial Services and Markets Act (FSMA) 2023. The PSR’s regime requires payment service providers to reimburse victims for losses up to £85,000. FSMA 2023 also gave the PSR powers to take action to require reimbursement for other payment systems which have been designated by HMT.

The details of the reimbursement regime and its enforcement are a matter for the independent PSR, but it has committed to carry out an independent evaluation of the reimbursement requirement after the rules have been in place for 12 months, including considering the maximum level of reimbursement.

Answered by:
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