New Fraud Refund Rules and ISA Changes

Money Box

BBC

Business

4.2 • 804 Ratings

🗓️ 18 May 2024

⏱️ 26 minutes

🔗️ Recording | iTunes | RSS

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Summary

New regulations aim to ensure that victims of fraud are treated fairly, no matter who they trust with their money. The financial watchdog, the Payment Systems Regulator, says many firms are not doing enough to refund victims of authorised push payment fraud. Currently the majority of high street banks are signed up to a voluntary charter that makes banks liable for customer losses. However many people hold accounts with firms known as Electronic Money Institutions, or EMIs. Such firms are regulated by the Financial Conduct Authority but do not have a banking licence. The new rules from the Payment Systems Regulator will be mandatory for both banks and EMIs. When they come into force in October they should cover nearly all payments made by individuals in the UK except international ones and those involving cryptocurrency. We hear from Money Box listener Carol, who had to spend a year fighting to get the money stolen from her refunded. New changes to the way ISAs, Individual Savings Accounts, simpler come in this month. Officially they should mean that savers now have the option to open more than one cash or stocks & shares ISA in the same year. We look at whether providers will be allowing customers to take advantage. And how do you pay for your car insurance? A new report from the consumer organisation Which? found that it can cost much more if you opt for monthly payments. A survey of 39 car insurance providers found an average APR of over 23% was charged for monthly payments, and the highest APR found was over 39%.

Presenter: Paul Lewis Reporter: Dan Whitworth Researchers: Sandra Hardial and Jo Krasner Editor: Beatrice Pickup

(first broadcast Saturday 20th April 2024)

Transcript

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0:00.0	On a winter's night in 1974, a crime took place that would obsess the nation.
0:07.0	It was an extraordinary news story.
0:09.0	The story of an aristocrat, Lord Lucan, who's said to have killed the family Nanny,
0:14.0	mistaking her for his wife, then somehow just disappeared.
0:18.0	One of the great mysteries in English criminal history. We're still looking for
0:21.7	Lucan. It's honestly one of the most powerful stories of my lifetime. I'm Alex Fontunzelman. This is
0:27.8	the Lucan Obsession. Listen on BBC Sounds. BBC Sounds, music, radio, podcasts. Hello, welcome to this Moneybox podcast. It's the ISA still your inflexible friend. The government has relaxed the rules about opening and moving tax-free ISIS, but are providers ready for the changes?
0:50.2	The Department for Work and Pensions does a U-turn into a North Sea skinny-dipping row,
0:55.6	and paying monthly for your car insurance can make the cost even higher than it already is.
1:01.6	But first, four out of ten crimes are fraud.
1:04.8	It's the crime you're most likely to experience,
1:07.0	but if you do, how you're treated and whether your stolen money is refunded,
1:13.8	can depend on which financial firm you trust your money with.
1:21.0	As you might have heard in the news bulletin, MoneyBots listener Carol had £80,000 stolen in the autumn of 2022.
1:29.8	It was an authorised push payment or APP fraud, where she was lied to and manipulated by criminals who then compromised and took control of her bank accounts. Initially, it was a huge trauma. I was shocked for about four days.
1:37.9	I didn't really feel anything. And then when things started to dawn on me, I became incredibly cross and I was thinking about it all the time.
1:47.9	I couldn't sleep at night.
1:50.1	I felt as though, in fact, it was my fault after a while that I was too stupid, that I shouldn't have been fooled by.
1:58.6	They were incredibly clever the scammers.
2:02.1	The whole, must have been a whole team of them.
2:04.1	Well, Moneybox reporter Dan Whitworth has been investigating.
2:06.7	What happened, Dan?
	...

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