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PSR reimbursement limit

Journalist: Emma Lunn, Freelance

ended 27. September 2024

I'm writing a piece for Saga looking at the APP fraud reimbursement rules which take effect on 7 October.

I'm looking for money /consumer experts who can comment on why the £85k limit is not enough, when the originally proposed limit was £415k. Who will be at risk from the reduced limit  - what sort of scam victims?

In general, are the new rules good/bad? More security for consumers or not going far enough?

Comments should reflect Saga's target audience of over-50s - are this group more at risk from scams etc?

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Editor
Gabriel McKeown
Head of Macroeconomics at Sad Rabbit - Substack Newsletter
With the introduction of the £85K APP scam protection promising a new era of consumer safeguarding, questions arise about its efficacy, particularly for those engaging in high-value transactions. The scheme has been scaled back significantly from its originally proposed £415K limit, leaving some consumers still vulnerable to substantial losses. This is especially relevant for property transactions, substantial investments, and significant retirement fund transfers that could easily surpass this threshold, exposing individuals to potentially ruinous losses. The reduction of the reimbursement limit to align with the FSCS limit likely stems from concerns about the potential burden on the banking sector, particularly in light of the existing losses due to APP fraud. While this reimbursement limit marks a step forward in consumer safeguarding, it may not provide the comprehensive coverage initially envisioned, and the adequacy of the current limit will likely come under scrutiny.