The Electronic Presentment of Instruments (Evidence of Payment and Compensation for Loss) Regulations 2018

Procedure for making and determining claims

6.—(1) Before making a claim for compensation under this Part—

(a) where the claimant is the customer of the banker which paid the instrument, and from whose account the payment was debited, the claimant must notify that banker in writing of the loss to which the claim relates;

(b) where the claimant is the banker which paid the instrument, the claimant must notify the responsible banker in writing of the loss to which the claim relates.

(2) Where the banker which paid the instrument has been notified in accordance with paragraph (1)(a), that banker must notify the responsible banker in writing of that notification before the end of the period of 5 working days starting on the first working day after the banker received the notification.

(3) A claim for compensation under this Part must—

(a) be made to the responsible banker in writing, and

(b) include all information relating to the claim necessary for the responsible banker to assess whether the conditions in regulation 5 have been met.

(4) A claim for compensation under this Part—

(a) may be made only if—

(i) the period of 56 days beginning with the day after the day on which the claimant notified the loss in accordance with paragraph (1) has expired, and

(ii) compensation for the total loss to which the claim relates has not been paid to the claimant, whether under another scheme or otherwise, and

(b) must be made before the end of the period of 6 years beginning with the day after the day on which the loss was incurred.

(5) Subject to paragraph (7), the responsible banker must before the end of the period of 15 working days beginning with the first working day after the day on which the responsible banker receives a claim for compensation under this Part, send to the claimant in writing—

(a) acceptance of the claim, and confirmation of—

(i) the amount that has been paid in respect of the claim, or

(ii) the amount that will be paid in respect of the claim and the date by which such amount will be paid, which must be before the end of the period of 10 working days beginning with the first working day after the day on which the acceptance is sent,

(b) refusal of the claim and the reason for the refusal, or

(c) a request for further information to enable the responsible banker to assess the claim.

(6) If the responsible banker requests further information under paragraph (5)(c), the responsible banker must in any event send the claimant an acceptance or refusal of the claim as described in paragraph (5)(a) or (b) within the period of 120 days beginning with the day after that on which the responsible banker received the claim.

(7) The responsible banker is not required to give a notification of refusal in accordance with paragraph (5)(b) if—

(a) the responsible banker has reasonable grounds to suspect fraudulent activity in which the claimant was knowingly involved,

(b) the responsible banker has notified the appropriate authority of such suspected fraudulent activity and grounds, and

(c) the responsible banker considers that giving a notification in accordance with paragraph (5)(b) would be likely to prejudice any investigation into the suspected fraudulent activity.