APP Fraud - Recovery Failure

Bank failed to recall misdirected payment in time

Mandatory ADR
Max award: £445,000 (from 1 Apr 2025)
Immediate action on report; 8 weeks complaint; FOS 6 months
Uphold rate: 34% (FOS 2024/25)

Key Legislation

PSR 2017; FCA BCOBS — PSR 2017 Reg 91; BCOBS 5A; Consumer Duty PRIN 2A

Complaint Route: Financial Ombudsman Service

Type: Ombudsman (binding on firm)

Max award: £445,000

Uphold rate: 34%

Average resolution: 180 days

Pre-conditions: Complain to firm first; firm has 8 weeks to resolve; then refer to FOS within 6 months of final response

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Companies in This Sector

All UK banks

Annual complaint volume: 305,726 (FOS 2024/25 total)

Note: Compensation range: Consequential loss + D&I

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Coverage

Tier 1 — Financial (FOS expertise)