TSB to unveil refund guarantee for fraud victims

Be interesting to see what they actually cover.

The code is actually already published with the new rules that all UK banks will be sticking by.

Indeed! I was reading the article and got to the point where they say “TSBs policy is expected to go further than the new code” and I’m like “yay, some actual info”. But nothing afterwards. How disappointing…


Here is some more reporting on it.

The things really stood out to me, both in this paragraph:

Moreover, the voluntary code, to come into effect from May 28, is likely to be funded by all bank customers and is only guaranteed for a year. One option for funding the scheme is to levy a charge of 1.25p on all online bank transactions. Only Nationwide and Lloyds have said they will not pass on the cost to customers.

  1. that new code of practice is only to be valid for a year? That’s new to me.
  2. more concerning to me: are we going to have to pay 1.25p per transfer in the future? That would mean I’d have to significantly rethink how I manage my money as I make lots of transfers…

Banks are part of many schemes that levy a charge, its never been passed on to customers directly in the past, no reason it will now.

It will be reviewed. No guarantee it will only last for a year.

Some banks already operate a similar scheme, this is just making it an industry wide thing.


Speaking of the other place: I bet they would want to pass on the charge. Oh, I can’t wait for that discussion :rofl:

A quid no-fraud convenience fee per transfer sounds fair to me

Fraud is pretty inconvenient

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What did I start :grimacing:

I never assumed that banks would pass the charge on - just that it was one possibility banks were looking at to fund the new scheme - more likely I assume, if such a charge is introduced it will be absorbed but there will be more pressure to use a account as a “main” account (which will still impact how I bank)

I only posted that in the other forum as a sidenote to my main post about Dozens asking about cheque imaging.

Looks like Monzo (and other Fintechs?) are going to prevent the current industry fraud compensation scheme.

Oh, that’s gonna be a fun discussion over on the Monzo forum.

Risk weighted measure more interesting than a balance sheet or market cap metric.

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I agree with Monzo - not sure why some additional levy scheme is needed here when banks themselves can just reimburse their customers?

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I guess the question if it’s not a pan-industry scheme is who takes the financial hit:

a) the bank the sending customer belongs too - though its not their fault, their customer authorised the payment?

b) the bank the fraudster used?

c) what happens if the fraudster manages to comprise an existing legitimate account and uses that?


And if it’s b or c customers will be relying on a third party bank who will no doubt argue liability with the sending bank

Do we actually have any evidence that fintech banks are actually better at app fraud prevention than legacy banks?

I know Monzo frequently state this and did so recently when the Watchdog story came out - but I thought one of the reasons why Monzo seem to freezing accounts is that they actually carry out less KYC customer checks than traditional banks when an account is first opened.

I’m a cynic - not that the fraud rates won’t vary between institutions and Dozens for instance seem to have a big focus on KYC checks - though as the proposal is a flat fee per faster payment…- I wonder if Monzo/fintech customers tend to use their accounts to make more faster payments then legacy bank customers and so they fear they would be paying more