Bank Refused Your Scam Refund? Your Next Steps (UK)
A refusal letter is not the end of the road. Banks reject large numbers of valid scam claims at first — and a significant share of those refusals are overturned on escalation. Here is how to challenge the decision properly.
Last reviewed: August 2026
Why banks refuse valid claims
First-line refusals are common and formulaic. The letters typically say you authorised the payment, that the bank warned you, or that you ignored advice — sometimes accurately, often not. Under the UK's authorised push payment (APP) reimbursement rules, most payment firms must refund eligible scam victims, and the eligibility questions are more nuanced than a refusal letter suggests.
The practical point: treat the first refusal as the bank's opening position, not a verdict.
Read the refusal forensically
The refusal letter tells you exactly what to attack. Work out which of these the bank is relying on:
- 'You authorised the payment' — irrelevant on its own; APP fraud is defined by authorised payments made under deception
- 'We gave you a warning' — was the warning specific to the transaction, or a generic prompt designed to be clicked through?
- 'You ignored our advice' — what advice, when, and did the scammer coach you on what to say?
- 'Gross negligence' — a high bar the bank must justify, not simply assert
- 'Out of time' — check the actual time limits before accepting this
Complain in writing and demand a final response
Put a formal complaint to the bank in writing, addressing each reason for refusal point by point, and ask for a final response letter. Include your Action Fraud reference, the timeline, and any evidence that the bank missed red flags — unusual payment patterns, a brand-new payee receiving large sums, or your own earlier contact with the bank about the same payments.
The bank has eight weeks to issue its final response. Keep everything.
Escalate to the Financial Ombudsman Service
With the final response letter — or after eight weeks without one — complain to the Financial Ombudsman Service at financial-ombudsman.org.uk. It is free, and you do not need a lawyer to use it. The Ombudsman looks beyond the bank's rulebook at what is fair and reasonable, and upholds a substantial proportion of scam-refund complaints. If you accept its decision, the bank is bound by it.
When the legal route is the better one
The Ombudsman route has limits: award caps, long queues, and a focus on the bank alone. Where the loss is large, where several regulated parties share responsibility — a bank, a crypto exchange with weak onboarding, an adviser who introduced the investment — or where the Ombudsman has already refused, a legal claim may be the realistic route.
That is the assessment we carry out free of charge: who the realistic defendants are, what the claim is worth, and whether it is worth pursuing at all. Where it is not, we tell you before you spend anything.
Common questions
Is my bank obliged to refund scam losses?
For authorised push payment (APP) fraud — where you were tricked into sending money to a scammer — UK reimbursement rules require most payment firms to refund eligible victims, subject to criteria, a claim cap and limited exceptions such as gross negligence. Whether your specific case qualifies depends on the facts, which is why refusals are worth challenging rather than accepting at face value.
The bank says it was my fault for authorising the payment. Is that the end of it?
Not necessarily. Authorising the payment does not automatically disqualify you — APP reimbursement exists precisely because victims authorise payments under deception. The relevant questions are whether the bank applied effective warnings, acted on red flags, and handled your claim properly. 'You authorised it' is the start of the argument, not the end.
How do I take my complaint to the Financial Ombudsman?
First exhaust the bank's internal complaints process and get a final response letter (or wait eight weeks). Then complain to the Financial Ombudsman Service free of charge — online at financial-ombudsman.org.uk or by phone. The Ombudsman can order reimbursement plus compensation, and its decisions bind the bank if you accept them.
When is a solicitor better than the Ombudsman?
The Ombudsman is free and handles most cases well, but its award caps and timescales do not suit every claim — larger or more complex losses, or cases involving multiple parties (bank, exchange, adviser), can be better assessed as legal claims. A free initial assessment will tell you which route fits your situation.
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