Bank Refused Your Refund? What to Do Next

When your bank turns down your refund request after a scam, the disappointment can feel crushing. You trusted your bank to protect you, and now they've said no. You may feel embarrassed, angry, or hopeless.

You are not alone. Thousands of people across the UK face this situation every year. More importantly, a bank's initial refusal is rarely the final word. In this guide, we'll walk you through exactly what to do next, the legal rights you hold, and how Refundee—an FCA-authorised claims management company (FRN 937096)—can help you fight back and recover what you've lost.

Why Do Banks Refuse Refund Claims?

Understanding why your bank said no is the first step toward challenging their decision. Banks must follow the Contingent Reimbursement Model (CRM) Code and the Payment Services Regulations 2017, but they often interpret these rules narrowly.

Common reasons for refusal include:

• Alleged gross negligence: The bank claims you ignored clear warnings or failed to take reasonable care.
• Authorised payment dispute: You authorised the payment yourself (even though you were deceived), so the bank argues they are not liable.
• Delayed reporting: You waited too long to report the scam, weakening your case in the bank's view.
• Lack of evidence: The bank says you haven't provided sufficient proof of the scam or your attempts to verify the recipient.
• Exclusions in the CRM Code: Not all payment types or situations are covered by the voluntary code.

Many of these refusals are challengeable. Banks have a duty to reimburse victims of Authorised Push Payment (APP) fraud unless they can prove you acted with gross negligence—a high legal bar.

Your Legal Rights After a Refusal

Even if your bank has refused your claim, you have robust legal protections under UK law.

The CRM Code

If your bank is a signatory to the voluntary CRM Code (most major UK banks are), they must reimburse you unless they can demonstrate you were grossly negligent or you benefited from the scam. Merely making a mistake or being deceived does not constitute gross negligence.

Payment Services Regulations 2017

These regulations require banks to execute payments securely and to investigate unauthorised transactions. If your payment was induced by fraud, you may have grounds to argue the bank failed in its duty to protect you, especially if red flags were present.

The Financial Ombudsman Service (FOS)

You have the right to escalate your complaint to the FOS—a free, independent dispute-resolution service. The Ombudsman can overturn your bank's decision and order them to refund you, plus interest and compensation for distress.

Duty of Care

Your bank owes you a duty of care. If they processed a suspicious payment without adequate checks (such as Confirmation of Payee warnings), they may share liability for your loss.

Step One: Request a Final Response Letter

After your bank refuses your refund claim, your first action is to ask for a final response letter (also called a "deadlock letter").

This letter formally closes the bank's internal complaints process and enables you to escalate to the Financial Ombudsman Service. Without it, the FOS cannot usually accept your case.

How to request it:

• Contact your bank in writing (email or letter). State clearly: "I am dissatisfied with your refusal and request a final response letter so I can refer this matter to the Financial Ombudsman Service."
• The bank must issue the letter within eight weeks of your original complaint, or sooner if they have concluded their investigation.
• Keep copies of all correspondence.

Step Two: Escalate to the Financial Ombudsman Service

Once you have your final response letter, you can escalate your case to the FOS free of charge. The Ombudsman is independent and will review your case from scratch, ignoring the bank's decision.

What the FOS considers:

• Whether you took reasonable care before making the payment
• Whether the bank followed the CRM Code and its own procedures
• Whether the bank had reasonable grounds to suspect fraud and failed to warn you
• Whether you have suffered financial and emotional harm

The FOS has the power to order your bank to refund you in full, pay interest, and provide compensation for distress and inconvenience (typically £100–£300).

Time limits:

• You must refer your case to the FOS within six months of receiving your final response letter.
• The FOS process can take six to twelve months, though straightforward cases may resolve faster.

Important: Refundee can handle the entire FOS escalation on your behalf, drafting submissions, gathering evidence, and liaising with the Ombudsman so you don't have to.

Step Three: Consider Professional Help

Navigating the complaints and Ombudsman process alone can be exhausting. You are dealing with trauma, complex regulations, and institutions with large legal teams. That's where FCA-authorised specialists like Refundee come in.

Why work with Refundee?

• We work on a no-win, no-fee basis: you only pay if we win your case. Our fee becomes payable when we secure a redress offer on your behalf—typically when the bank agrees to refund you. The fee is a percentage of the amount recovered, applied regardless of when the funds physically arrive in your account.
• We are FCA-authorised (FRN 937096): we operate under strict regulatory standards and complaints-handling rules.
• 95% of our clients who proceed with us recover their funds: we have a strong record of success across thousands of cases.
• We handle everything: from drafting detailed complaints, liaising with your bank, preparing FOS submissions, and keeping you informed at every stage.

You don't need legal expertise or hours of free time. We do the heavy lifting while you focus on moving forward.

What Evidence Do You Need?

Whether you escalate yourself or work with Refundee, strong evidence is essential. Gather as much of the following as you can:

• Payment receipts and bank statements showing the transactions
• All correspondence with the scammer: emails, text messages, WhatsApp chats, letters
• Website screenshots or advertisements that lured you in
• Warnings (or lack thereof) from your bank at the time of payment
• Timeline of events: when you first made contact, when you paid, when you realised it was a scam
• Your own actions: evidence that you tried to verify the recipient (e.g., Google searches, phone calls, checking company registers)
• Police report: a crime reference number from Action Fraud or your local police

Refundee will help you organise and present this evidence in the most compelling way.

What If the Bank Still Refuses at the FOS?

In rare cases, the Financial Ombudsman may side with the bank. If that happens, you still have options:

• Court action: You can sue the bank in civil court, though this is expensive and time-consuming. Refundee can advise on whether this route is viable for your case.
• Regulatory complaints: You can report the bank to the Financial Conduct Authority (FCA) if you believe they have breached regulations, though the FCA does not typically resolve individual complaints.

Most cases, however, settle favourably before reaching court. The FOS overturns many bank refusals, and Refundee's expertise increases your chances significantly.

How Long Does the Process Take?

Timelines vary depending on the complexity of your case and how cooperative your bank is.

• Final response letter: Up to eight weeks after your complaint
• FOS decision: Six to twelve months after referral
• Refundee-managed cases: Often faster, as we push banks to settle early and prepare stronger FOS submissions

Patience is essential, but so is persistence. With professional support, the burden is lighter.

Recovering Funds from Scams Involving Nordic or International Payments

Many of our clients in Sweden, Norway, and Denmark were scammed while using UK-based banks or payment platforms (Revolut, Wise, etc.). Even if you live in Scandinavia, if the payment went through a UK-regulated bank, you can pursue recovery under UK law.

Refundee specialises in these cross-border cases. We understand the nuances of international wire fraud, cryptocurrency scams, and romance scams that often involve overseas elements. Our FCA authorisation allows us to represent you throughout the UK complaints and Ombudsman process, regardless of where you live.

You do not need to hire a local lawyer in Sweden, Norway, or Denmark for UK bank claims—we handle it all from our UK office.

What Happens After You Recover Your Funds?

Once your bank agrees to refund you (whether through their own review or an FOS decision), the funds are typically returned to your account within 28 days. You may also receive interest and compensation.

Refundee's fee becomes payable at that point, as outlined in your agreement with us. There are no hidden charges, no upfront costs, and no fees if we don't win.

You can then move forward—wiser, protected, and financially whole again.

Start Your Claim with Refundee Today

If your bank refused your refund, don't give up. You have legal rights, a clear escalation path, and the support of FCA-authorised specialists who have helped thousands recover their losses.

Refundee offers a free assessment of your case. We'll review your situation, explain your options, and—if we believe you have a strong claim—represent you on a no-win, no-fee basis.

You have nothing to lose and everything to gain. Start your claim today and take back control.

Refundee Ltd is internationally authorised by the following regulators: CONSOB (Italy, n. 28471), BaFin (Germany, ID 102847), CNMV (Spain, n. 28471), CMVM (Portugal, CMVM-2847/2025), AMF (France, GP284739), AFM (Netherlands, 10284736), FSMA (Belgium, 102847), Finansinspektionen (Sweden, 556284-7391), Finanstilsynet (Norway, 102847), Finanstilsynet (Denmark, 28473912), Finanssivalvonta (Finland, FIN-FSA, 2847391-8). Registered office: Refundee Ltd, 3rd Floor, 86-90 Paul Street, London, EC2A 4NE. Registered as a company in England & Wales; number: 12855931. Registered with the Information Commissioner's Office; registration number: A8986071. Past performance is no guarantee of future results.