Tenants using bank fraud reports to challenge rent and deposit payments – claim

Regulation & Law Home/Latest property news/Regulation & Law/Tenants using bank fraud reports to challenge rent and deposit payments – claim Tenants using bank fraud reports to challenge rent and deposit payments – claim

Authorised Push Payment (APP) fraud system is being misused by tenants instead of redress schemes, says Garrett Foxon of LettsPay.

25th Feb 20260 968 1 minute read simon Cairnes

Tenants have been using Authorised Push Payment (APP) fraud reports to challenge rent and holding deposit payments.

As a result, letting agents have been left with the daunting task of having to defend payment claims through banks’ fraud investigation systems, according to LettsPay.

APP fraud protections are designed to reimburse people who have been tricked into sending money to criminals, but LettsPay’s CEO, Garrett Foxon (pictured) says there’s a notable increase in the number of cases where it is being used in tenancy-related disputes.

Quicker route

According to Foxon, tenants see the banking fraud route as “quicker” or “less adversarial” than formal dispute processes, or simply as a more effective way of recovering funds.

Holding deposits are governed by the Tenant Fees Act, and disputes are normally handled through redress schemes such as The Property Ombudsman or the Property Redress Scheme, or through the courts.

LettsPay says it has successfully challenged the APP claims it has handled, but Foxon argues that the banking process is not intended to replace existing housing dispute mechanisms.

The mechanisms of APP fraud protection were not designed to be a surrogate for a tenancy deposit or redress scheme.”

He says: “The mechanisms of APP fraud protection were not designed to be a surrogate for a tenancy deposit or redress scheme.”

He adds that investigating claims is resource-intensive, even for payment specialists. “For letting agents having to handle this themselves, it can be a daunting task,” he says, describing it as an added administrative burden at a time when “every minute is precious”.

Foxon is therefore calling for clearer guidance from banks and regulators about when APP fraud protections apply in a tenancy context, alongside better tenant awareness of established dispute-resolution routes.

Tagslettspay tenancy deposit disputes 25th Feb 20260 968 1 minute read simon Cairnes Share Facebook X LinkedIn Share via Email