Customer Complaints Over Fraud Reimbursement by Revolut Surge

The UK's Financial Ombudsman has reported a significant 35% increase in customer complaints regarding Revolut's denial of reimbursement requests for thefts related to fraudulent activities. This data, brought to light by Bloomberg, indicates a growing dissatisfaction among Revolut users facing fraud-related issues.

In nearly half of the cases reviewed and closed last year, the Financial Ombudsman ordered Revolut to reimburse the customers for their losses. Despite these rulings, law firms representing Revolut's customers have reported that the fintech company continues to deny many of these claims, highlighting a persistent issue in the company's approach to handling fraud reimbursements.

This surge in complaints comes at a critical time as new rules by the Payment Systems Regulator are set to take effect by October. These regulations will require payment service providers (PSPs) in the UK to reimburse consumers who fall victim to authorised push payment (APP) fraud when using Faster Payments. The reimbursement cap, up to £415,000, will be split equally between the sending and receiving PSPs.

The impending regulations have raised concerns within the neobanking community about the potential financial impact on their operations. This has led to intense lobbying efforts to reduce the maximum reimbursement value to £30,000 and to impose a 'tech levy' on social media firms, where many such frauds originate.

Alongside Revolut, other challenger banks like Monzo and Starling were also found to be among the lowest scoring firms for reimbursing victims of APP fraud. According to 2022 data published by the Payment Systems Regulator, these banks, known for their customer service, lag behind their larger counterparts in compensating customers tricked by fraudsters into making payments to unauthorized accounts.

This ongoing issue underscores the need for more robust fraud prevention and reimbursement policies within the fintech industry to protect consumers and maintain trust in digital banking services.

Compliance and Risk Assessment for Revolut by PayRate42:

Revolut has demonstrated significant progress in recent years, securing regulatory licenses across numerous jurisdictions as both a bank and an Electronic Money Institution (EMI). In light of these achievements, we are pleased to include Revolut on our Green Compliance list. Customer feedback further reinforces this positive assessment, with user reviews indicating high satisfaction levels. The Revolut app consistently receives top ratings on both Apple and Google platforms. Coupled with its robust financial standing, these factors lead us to place Revolut on our Green Risk list, reflecting its strong financial stability and minimal risk profile.

Read More about Revolut:
www.payrate42.com/listings/revolut/

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PayRate42 is a rating agency specializing in payment processors. Our main goal is to protect merchants and consumers by providing transparency through the evaluation and rating of financial service providers. High-Risk Payment Processors (HRPP) operating outside the established regulatory framework are our primary focus.

This release was published on openPR.