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MP lobbies for new bank fraud reimbursement scheme to cover past victims

April 5, 2019 5:08 PM

Tim with representatives from UK FinanceLocal MP Tim Farron has pushed the industry body for banking and finance to make a new reimbursement scheme available to past victims of online banking scams.

From the end of May, a new code of conduct will cover losses for people who have been tricked into transferring bank payments to fraudsters.

But during a meeting with representatives from UK Finance, Tim said that the scheme's failure to cover past victims will be hollow news for several constituents who have contacted him after losing tens of thousands of pounds over the past year.

Tim has now written to the Business Secretary, Greg Clark calling for the new code of practice to apply for past victims of financial fraud.

Tim said: "The alarming trend of bank closures in our towns and villages means that banks have a duty to start properly protecting people from the huge threats that come with online banking.

"Therefore, the new code of practice which will lead to more people getting their money back is to be initially welcomed.

"However, this is hollow news for people who have already been through the trauma of losing money to heartless criminals.

"For the new system to be properly effective, it needs to allow people who have been victims of financial fraud in the past to be able to claim back their money."