In July 2023, it was confirmed by a Supreme Court decision that Quincecare duty does not extend to individual customers who are defrauded in the case of sending money to another bank account, including those who are victims of authorised push payment (APP) fraud. However the decision did not exclude customers from bringing a suit against their bank.
Partner Simon Fawell commented on the recent case brought by study support company CCP Graduate School Ltd. alleging that their bank, NatWest, should be liable for payments it was tricked into making, as if the bank had reacted more quickly, more of the money could have been recovered.
Discussing the argument brought by CCP, Simon noted: "That's going to require an analysis of two things. First, what would practically have happened had they taken the steps requested, which, depending on where the cash has been transferred, potentially brings into question banking practices in other jurisdictions, because of course, it depends what the next bank down the chain will do."
Simon also questioned: "How slow is too slow?" for action to be taken against a bank.
He added: "It will depend in each case on what the request is. There will also be the need for comparison with what other banks in those circumstances could reasonably be expected to have done."