FCA: Firms making good progress in handling unauthorised transactions
28 July 2015 | 1464 views | 0
Source: Financial Conduct Authority
Research into how claims are handled for unauthorised transactions (when a payment is made from a consumer’s account without their consent) found that firms are making good efforts to deliver fair outcomes for consumers.
A thematic review into the issue by the Financial Conduct Authority (FCA) found firms tended to err on the side of the customer and handled complex claims on a case-by-case basis.
Linda Woodall, acting Director of Supervision - retail and authorisations, said:
“It is encouraging that firms are making good progress on this issue. Consumers have a right to feel confident that if someone takes money from their account without their permission they will get it back. Our consumer research showed just how distressing unauthorised transactions can be and we are pleased that firms recognise this.”
The FCA found examples of good practice including: active monitoring of decisions to ensure they are fair, particularly where refunds are declined; ensuring the most complex cases are being managed by the most experienced staff and are escalated appropriately, and; good knowledge sharing within firms to ensure that less experienced staff learn from more experienced case handlers. The regulator also noted that firms were proactively providing information to customers on how to avoid becoming a victim of fraud.
However there were also some issues, including some confusion from firms on how to handle unauthorised transactions made using an overdrawn current account.
Based on their findings, the FCA does not believe further thematic work is required however firms should rather consider the findings and take action where needed.