British banks have disagreed on how fraud victims should be compensated, leading to people having fallen prey to bad actors potentially being left with reduced reimbursement options in January.
The news comes after banks put in a temporary agreement in May on how victims of so-called authorized push payments (APP) scams would be paid back for falling victim to fraudsters.
However, the period of this temporary agreement is coming to an end with the banks not having been able to agree about how to fund a reimbursement fund to pay back the victims.
There had been talk about this fund potentially being funded by a 3p levy on all bank transfers, but the bank disagreed about the idea, with some arguing that it would mean that the ones doing everything they could to protect people would have to pay the same as those who did less.
Pay.UK, the industry body, stated that since there was no consensus, customers could be left with lower protection come the beginning of 2020.
The organization is now urging the industry and regulators to work together to find a solution. “It is critical that the whole industry plays its part,” Paul Horlock, the CEO of Pay.UK, told the BBC.
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