Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of bringing forward legislative proposals to place the Contingent Reimbursement Model Code for Authorised Push Payment on a statutory footing.

In March 2018, the Payment Systems Regulator (PSR) established a steering group of financial institutions and consumer representatives to develop a voluntary code of good practice to help protect consumers against authorized push payment (APP) scams.

At the end of February 2019, the steering group published the Contingent Reimbursement Model Code for Authorised Push Payments (the Code), which sets out the agreed principles for greater protection of consumers and the circumstances in which they will be reimbursed, making a significant step in delivering improved protections for consumers. The Code became effective on 28 May 2019 and customers of those payment service providers that are signatories (which includes all of the 6 largest banks and building societies) are protected under the Code from this date.

The Code is still in its infancy and the Government believes it should be given time to embed and take full effect before its effectiveness can properly be assessed. The Lending Standards Board (LSB), which is responsible for the Code, has committed to a first annual review of its operation in Summer 2020 and will shortly publish more information about its planned approach, including its intention to consult widely with consumer representatives and the industry. The Government looks forward to reviewing these findings when they become available.