Your Right to Reimbursement under the APP Fraud Reimbursement Scheme
About your right to reimbursement if you’re the victim of an APP scam
Who does the right to reimbursement apply to?
These rights relate to consumers using our services directly and through Partner Platforms where they have accepted Modulr Account terms for a Modulr account.
What are APP scams?
Authorised Push Payment (APP) scams occur when a scammer tricks you into sending money to a person or account you didn’t intend to send money to, or for a purpose you didn’t intend. This could happen, for example, when you believe you’re sending money to buy an item online, paying an invoice, making an investment, or sending funds at the request of your bank or payment provider, only to realise later that the recipient was a scammer.
Your right to reimbursement
On 7 October 2024, new rules from the Payments Systems Regulator (PSR) come into force, giving you the right to be reimbursed if you fall victim to an APP scam.
Not everyone is automatically eligible for reimbursement. Here’s what you need to know:
- Payment type: The right to reimbursement only applies to payments you have made to accounts in the UK using Faster Payments and/or CHAPS.
- Eligible customers: The right to reimbursement only applies to individuals, sole traders, charities with annual income of less than £1 million, and microenterprises (businesses that employ fewer than 10 people with annual turnover and/or assets of less than €2 million at the group level).
- Timeframe: The new rules apply to payments made on or after 7 October 2024. If you’re scammed, you must raise a claim within 13 months of the final payment to the scammer.
- Claim limit: The right to reimbursement applies up to the claim maximum set by the PSR of £85,000.
- Claim excess: Modulr will charge a claim excess of £100. This will be deducted automatically from the money that is returned to you, if your claim is reimbursable.
When does the right to reimbursement not apply?
There are situations where the right to reimbursement doesn’t apply. Some of these situations include:
- First party fraud: If you dishonestly make a claim for reimbursement when you haven’t actually been scammed.
- Gross negligence: If you’re grossly negligent, including if you ignore us when we warn you that a payment you’re trying to make is probably a scam, if you don’t provide us with the information we need to process your claim, if you don’t report the scam to us within 13 months, or if you don’t consent to us reporting the scam to the police on your behalf.
- Other payment methods: The rules apply to payments made through Faster Payments and/or CHAPS. Transactions via cheque, cash, or international payments are not covered.
- Payments to certain account types: Payments made to credit unions, municipal banks or national savings banks.
- “On us” payments: Payments made to other Modulr accounts.
- Civil disputes: If your claim relates to a civil dispute, for example, if you purchase something from a legitimate seller but are unhappy with the product you receive.
Reporting scams
If you think you have been targeted by a scam or need advice about a potential scam, please contact us right away. The quicker that it’s reported, the better.
You can reach our 24/7 support team on +44 (0) 303 313 0060 or by calling “159”.
If you’d prefer to contact us by email, you can reach us at support@modulrfinance.com.
You can also use a form on our website to report fraud:
What to expect when making a claim
After notifying us that you think you’ve been victim to an APP scam, we’ll ask you for some information about the scam, including the account(s) you made the payment(s) to, the time and date that you made the payment(s), the amount of money you sent, and a detailed description of what happened.
We will then review the details of the claim to determine whether you’re eligible for reimbursement based on the criteria set out by the Payment Systems Regulator. Most cases are resolved within five business days, though complex cases may take longer. After we complete the assessment, any reimbursement you are entitled to will be credited to your Modulr account. In line with the rules set out by the PSR, we will apply a £100 claim excess, which will automatically be deducted from the amount you are reimbursed.
You can find out more about the claims process on our website.
Your options if you’re unhappy with the outcome
If you’re dissatisfied with the outcome of your claim, you have the right to make a complaint. If your complaint isn’t resolved to your satisfaction, you have the right to escalate it to the Financial Ombudsman Service for independent review. You can read more about how to make a complaint using this link.
There are several organisations that can provide you with additional support if you are concerned about APP fraud or you become victim of a scam. These include:
- CIFAS: Register with CIFAS to prevent fraudsters from using your name to apply for products or services.
- Take Five to Stop Fraud: Led by UK Finance, Take Five is a national campaign that offers straight-forward and impartial advice to help everyone protect themselves from preventable financial fraud.
- Citizens Advice: Providing knowledge and advice on what to do next, and giving you support on the issues you might be facing. Phone: 0808 223 1133
- Victims Support: An independent charity, providing free and confidential advice to people affected by crime. Phone: 08 08 16 89 111