Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps she is taking to ensure that banks abide by the Payment Systems Regulator's new mandatory reimbursement framework and swiftly investigate cases of APP fraud.

The Government takes the issue of fraud very seriously and is dedicated to protecting the public from this appalling crime. The Payment Systems Regulator (PSR) is the independent regulator with responsibility for the Authorised Push Payment (APP) scam reimbursement regime.

The PSR’s rules require in scope Payment Service Providers (PSPs) to reimburse victims of APP scams, which take place over the Faster Payments System, within five business days of making a claim. However, PSPs may take longer in specific circumstances, including where it may need more time to gather sufficient information from the victim or third parties to help assess the claim.

To monitor the success and impact of its regime, the PSR has committed to commission an independent post-implementation review of its policy after 12 months of the policy being in force.

On 11 March, the Government announced its intentions to consolidate the PSR and its functions primarily within the FCA. The PSR continues to be an independent economic regulator with full access to its statutory powers until legislation is passed to change this and APP scam victims will continue to benefit from the same levels of protection.