The U.K.’s payment regulator is reportedly making a drastic cut to its fraud reimbursement plan.
Banks and payment companies in England would have had to reimburse victims of scams up to £415,000 ($544,000), but will now have to pay a maximum of £85,000 ($111,000), the Financial Times reported Wednesday (Sept. 4), citing sources familiar with the matter.
The move follows pressure from the banking/payments sector on the Payment Systems Regulator (PSR) to scale back the reimbursement plan, set to go into effect Oct. 7. According to the FT, a consultation on the new limit is expected to be announced as soon as Wednesday.
The report also notes that the PSR says it will release findings on how much of recent payment fraud was on individual transactions of more than £85,000. However, the regulator declined to say whether it would reduce the proposed threshold for mandatory reimbursement by banks from £415,000.
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