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UK regulators are set to significantly reduce the maximum amount banks and payment companies are required to reimburse fraud victims. Initially, the reimbursement cap was set at £415,000, but it will now be lowered to £85,000. This decision comes after strong pressure from ministers and fintech firms, who argued that the higher cap could incentivize fraud. The new regulation aims to balance the need to protect consumers while mitigating risks for financial institutions. Critics argue that this move amounts to corporate welfare, boosting bank profits at the expense of customers.
🇬🇧 Scam Reimbursement Payouts To Be Slashed After Pressure From Fintechs ▫Compensation ceiling lowered ▫£415,000 plan cut to £85,000 ▫Banks feared incentive for fraud ▫@GeorgeWParker @MAmdorsky @akilazoe @_MODwyer #frontpagestoday #UK @FT 🇬🇧 https://t.co/2L8U45xBK4
UK poised to slash maximum amount that banks will have to refund to fraud victims – from £415,000 to about £85,000. Another episode in corporate welfare; boosting bank profits, misery for customers. Banks are bailed out. Innocent fraud victims are not. https://t.co/WN2SMu9y50
The new maximum fraud payout is now expected to be set at just £85,000, down from £415,000. https://t.co/ZClSJXqMUv https://t.co/jONEk9wijd
