Authorised Push Payment Compensation Claims

Authorised Push Payment (APP) refers to a type of financial transaction where a person knowingly and willingly authorises the transfer of funds from their own bank account to another account, often initiated by a third party. APPs are typically conducted through electronic payment methods, such as online banking, mobile banking apps, or over the phone.

However, there is also a growing threat of fraudulent or unauthorised APPs that can lead to devastating financial losses. If you have suffered as a result of a fraudulent APP, you may be eligible to claim authorised push payment compensation.

At Annecto Legal, we can put you in touch with APP solicitors who can help you claim the compensation that you deserve and achieve a positive outcome on your case. We can also assist by helping you to secure litigation funding for your case.

Unfortunately, because of the high costs of legal actions in the UK, we only assist in disputes which are valued at over £250,000, at the absolute minimum. We would like to be able to help on other claims, but we just don’t have access to any products that can assist on smaller matters.

Types of authorised push payment fraud

There are several types of authorised push payment (APP) fraud that scammers use to deceive individuals into authorising fraudulent transactions. These include:

1. Impersonation scams: In this type of fraud, the scammer poses as a trusted individual or organisation, such as a bank representative, government official, or service provider. They use various tactics to gain the victim’s trust and convince them to authorise a payment, often by providing false information or creating a sense of urgency.
2. Invoice scams: Scammers target businesses by sending fake invoices or payment requests that appear to be from legitimate suppliers or clients. The invoices often contain manipulated bank details, redirecting the payment to the fraudster’s account instead of the intended recipient.
3. CEO fraud or Business Email Compromise (BEC): This type of fraud targets businesses, particularly those with lax internal controls. Scammers impersonate high-ranking executives or business partners and trick employees into making large payments or transferring funds to fraudulent accounts.
4. Romance scams: Fraudsters exploit emotional connections formed through online dating platforms to manipulate victims into sending money. They may create fake profiles, establish relationships, and then fabricate stories or emergencies to convince the victim to send funds through an APP.
5. Investment scams: Scammers promise high returns on investments or promote fake investment opportunities, convincing victims to transfer money to fraudulent investment schemes. These authorised push payment scams often involve sophisticated marketing materials and persuasive tactics to lure unsuspecting individuals.
6. Tech support scams: Fraudsters impersonate technical support representatives from reputable companies and trick victims into believing that their computer or device has been compromised. They then request payment for fake services or software, which is authorised through an APP.
7. Rental scams: Scammers pose as landlords or agents and advertise fake rental properties at attractive prices. Fraud victims are required to make upfront payments or deposits through an APP before realising that the property does not exist.

It is important to note that scammers constantly evolve their tactics, and new variations of APP fraud can emerge over time. Staying informed, exercising caution, and being aware of common APP scam techniques can help individuals and businesses protect themselves against these fraudulent schemes.

Claiming authorised push payment compensation

As soon as you become aware of the fraudulent transaction, you should contact your bank, building society, or financial institution to report the incident. The bank will then conduct an investigation to determine the legitimacy of your claim. Most banks have APP fraud protocol in place that is set out as part of their contingent reimbursement model code.

Provide them with all the relevant details, including the date, time, and amount of the fraudulent transaction, as well as any evidence you have. Follow their instructions on reporting the fraud and initiating the compensation claim process.

You should maintain a detailed record of all communication with the bank regarding the fraudulent transaction and your authorised push payment compensation claim.

If your bank is unable to provide a satisfactory resolution you may need to escalate your claim to the Financial Ombudsman Service that handles APP compensation claims. An APP solicitor can provide professional advice and assist you in navigating this compensation process.

What is the role of an APP solicitor?

An APP solicitor, also known as an authorised push payment solicitor, is a legal professional who specialises in providing advice and representation to individuals who have been victims of APP fraud. Their role involves assisting clients in navigating the legal aspects of APP fraud and pursuing compensation claims.

The specific role of an APP solicitor may include the following:

1. Legal advice: An APP solicitor provides clients with expert legal advice regarding their rights and options in cases of APP fraud. They can assess the circumstances of the fraud, evaluate the strength of the case, and advise on the potential legal remedies available.
2. Compensation claims: APP solicitors guide clients through the claims process, ensuring that all necessary documentation is submitted and advocating for their clients’ rights to receive compensation for their losses.
3. Evidence gathering: APP solicitors help clients gather and compile the necessary evidence to support their claims. This may involve obtaining bank statements, transaction records, emails, or any other relevant documentation that can strengthen the case.
4. Negotiations and settlements: In cases where a settlement can be reached, an APP solicitor represents their client’s interests in negotiations with the bank or financial institution. They strive to secure a fair settlement that adequately compensates the client for their losses.
5. Legal proceedings: If a settlement cannot be reached through negotiation, an APP solicitor may assist their client in pursuing legal action. They can prepare and file legal documents, represent the client in court and advocate for their rights during the litigation process.

Funding an authorised push payment compensation claim

If you are pursuing an authorised push payment compensation claim, legal costs can escalate quickly. Therefore, it is essential that you are aware of the funding options that are available to you. Listed below are some of the options for funding a claim.

• Conditional fee agreements – Conditional fee agreements (CFAs), also known as ‘no win, no fee agreements’, are a type of funding arrangement that allows individuals to pursue a claim without paying legal fees upfront. Under a no win no fee basis, the law firm agrees to take on the case and only charges a fee if the case is successful. If the case is unsuccessful, the client does not have to pay these legal fees.
• Contingency fee agreement – Some APP solicitors may offer to take on a claim on a contingency fee basis. This means that they will only charge a fee if they are successful in securing a financial settlement or damages. The fee payable to the solicitor is usually a percentage of the amount recovered, and if the case is unsuccessful, the law firm will not charge a fee.
• After the event insurance – After the event (ATE) insurance is a type of insurance that can provide cover for legal costs in the event that a case is unsuccessful. This option can be particularly useful in cases where the outcome is uncertain, and the costs of losing a case could be significant. ATE insurance is often used with conditional fee agreements and contingency fee agreements.

• Third party litigation funding – In some cases, third party litigation funders may be willing to provide funding for a claim in exchange for a percentage of any financial settlement or damages awarded. This option can be attractive for individuals who cannot afford to pay for legal fees themselves but have a strong case. ATE insurance is often used in conjunction with this type of funding.

How can Annecto Legal assist?

At Annecto Legal, we assist a range of clients in finding the right legal representation for their APP compensation claims. We also ensure the appropriate litigation funding and insurance is put in place to ensure there are no financial barriers.

The preference is always to find a suitable settlement in a reasonable timeframe, but the best way to achieve this is to negotiate from a position of strength. Having the best APP solicitors and being fully funded gives you that strength and forces your opponent to the negotiating table.

If you are in the process of pursuing or defending a APP dispute and want to find out whether you’ve got a claim, then contact Annecto Legal now. We can help find you the right APP team, as well as managing your financial risks and sourcing funding for your legal fees.

Unfortunately, because of the high costs of legal actions in the UK, we only assist in disputes which are valued at over £250,000, at the absolute minimum. We would like to be able to help on other claims, but we just don’t have access to any products that can assist on smaller matters.