A woman who lost £20,000 in a sophisticated investment fraud had to battle a 13-month deadline to recover her money, after the bank initially refused to reimburse her in full.
Sarah, who spoke on condition of anonymity, believed she was making an ethical investment in social housing. She carried out checks with Companies House, the Law Society, and Trustpilot before transferring the funds from her pension in October 2024. However, she did not realize the investment was a scam until March 2026—17 months after the payment.
Under new regulations introduced in October 2024 by the Payment Systems Regulator, victims of push payment scams must report the fraud to their bank within 13 months of the last payment to qualify for mandatory reimbursement. Because Sarah missed this window, Lloyds initially offered only £1,000 for a pre-rule payment, refusing to refund the remaining £19,000.
"It really floored me," Sarah said. "I had no understanding of the 13-month rule before it came in because it's impossible to spot these things."
After BBC Radio 4's Money Box investigated, Lloyds reversed its decision within 24 hours and refunded the full £20,000. A Lloyds spokesperson expressed sympathy for Sarah and urged victims to report scams immediately.
National Trading Standards has called for an urgent review of the 13-month rule. Louise Baxter, head of its Scams Team, argues the clock should start when the victim discovers the fraud, not from the payment date. "Investment fraud can go on for a really long time," she said. "You could get to a point where you didn't know you were a victim for quite a considerable amount of time."
The Payment Systems Regulator stated that firms should consider individual circumstances, and victims who are dissatisfied can complain to the Financial Ombudsman Service, which has no time limit and can order reimbursement up to £455,000.
Sarah said she was "over the moon" to have her retirement savings restored. "I just can't believe that in just over 24 hours it's changed," she added.