Financial Services: Internet

(asked on 23rd April 2021) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps his Department is taking to ensure that (a) PayPal and (b) other digital financial services providers have a clearly defined process for next of kin, should a customer pass away, and prevent the withholding of access from next of kin or organisations that the individual was previously involved with.


Answered by
John Glen Portrait
John Glen
Paymaster General and Minister for the Cabinet Office
This question was answered on 28th April 2021

PayPal currently provides services in the UK through the Temporary Permissions Regime, and is regulated by the Financial Conduct Authority.

The FCA’s handbook rules require payment service providers, which includes banks, payment institutions and electronic money institutions, to send a final response to complaints about rights and obligations arising under the Payment Services and Electronic Money Regulations within 15 business days after the day on which it received the complaint. In exceptional circumstances, such as where the respondent cannot send a final response within this period for reasons beyond the control of the firm, a response must be sent within 35 business days.

If a consumer complains to a relevant financial services firm and is unhappy with the response, they may be able to bring their complaint to the Financial Ombudsman Service (FOS). The FOS provides consumers with a free, independent service that enables the proportionate, prompt and informal resolution of disputes with financial firms

With regards to next of kin procedures for banks, payment institutions, and electronic money institutions, the FCA expects firms to have an effective process for dealing with a deceased customer’s accounts from notification of death to the transfer of funds to those who are entitled to receive them. This process is set out in the FCA’s handbook rules.

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