Key Legal Protections for Scam Victims in the UK
Key legal protections in the UK
Consumer Protection from Unfair Trading Regulations 2008 (CPRs)
These regulations prohibit unfair commercial practices, including:
- Misleading actions or omissions
- Aggressive sales tactics
- Bait advertising and fake endorsements
If a trader uses deception or undue pressure to influence a consumer’s decision, the consumer may be entitled to rescission of contract, a refund, or damages.
Fraud Act 2006
Covers criminal fraud through:
- False representation
- Failure to disclose information
- Abuse of position
Victims can report fraud to the police or Action Fraud. While this is a criminal route, victims may be entitled to compensation through the criminal courts, especially if the perpetrator is prosecuted.
The Theft Act 1968
This may apply in some scams involving unauthorised taking of property or funds. Legal action can result in criminal charges and restitution orders.
The Misrepresentation Act 1967
If someone was misled into a contract by a false statement, they may be able to:
- Rescind the contract
- Claim damages for loss
This is especially relevant in investment scams or fake service agreements.
Financial Services and Markets Act 2000 (FSMA)
Applicable to scams involving:
- Unregulated investments
- Unauthorised financial services
Victims can report breaches to the Financial Conduct Authority (FCA) and seek compensation if the firm is FCA-authorised and fails.
Section 75 of the Consumer Credit Act 1974
If a scam involves a purchase made with a credit card or finance over £100 and under £30,000:
- The credit provider is jointly liable with the supplier.
- Victims may get a full refund through the card company, even if the seller is uncontactable or overseas.
Chargeback Scheme (for Debit Cards)
Although not a legal right, this is a voluntary scheme where banks can reverse fraudulent or disputed debit card payments, typically within 120 days of the transaction.
Authorised Push Payment (APP) Scam Code
A voluntary code adopted by many UK banks:
- Victims who are tricked into sending money to scammers can be reimbursed if they acted with reasonable care.
- Banks must also demonstrate that they met their own obligations to prevent the scam.
If the bank refuses reimbursement, a complaint can be made to the Financial Ombudsman Service.
Civil Claims and Litigation
Where criminal avenues don’t lead to recovery, a civil claim may be possible:
- Breach of contract
- Negligence (e.g. bank failed to notice red flags)
- Unjust enrichment or conversion
Lawyers can assist in tracing funds, freezing assets, and recovering losses through court proceedings.
What Should Victims Do?
- Report the scam – To Action Fraud, banks, or relevant regulators.
- Preserve evidence – Emails, receipts, messages, and payment confirmations.
- Seek legal advice early – Especially for high-value losses, complex fraud, or overseas scams.
Sarah Waddington Solicitors; Financial Claim Specialists
Our experienced team of solicitors specialises in navigating the complexities of financial claims. We strongly encourage you to get in touch with us at Sarah Waddington Solicitors. Our experienced team of solicitors specialises in navigating the complexities of financial rights and finance law.
By taking proactive steps now, you can position yourself to explore potential compensation claims and benefit from the positive developments in the industry.
Your satisfaction and success in dispute resolutions are of utmost importance to us. Sarah Waddington Solicitors remains committed to providing professional, reliable, and effective legal services.
To initiate a consultation or discuss your situation further, please contact us via our Online Chat or at info@sarahwaddingtons.com or 01924 601096. Our dedicated team is ready to assist you on the path to fair compensation and resolution.
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