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Version | 1.12 |
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Publication Date | 26 Sep |
Classification | Public |
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This Limitation of Liability Model is provisional and subject to change. |
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Issue | Example / Requirement | Liable Party | Responsible Party | Extent of Redress | OF Compensation / AED |
|---|---|---|---|---|---|
Misuse (outside of Consent or otherwise) or Loss of Data by TPP | TPP had requested a one-off consent for a Loan application, but the data was then shared with marketers without User’s consent resulting in a breach of data privacy. | TPP | TPP | Direct Losses & Open Finance Compensation | 750 |
Inaccurate data transmission, processing or analysis by TPP | The TPP is periodically accessing User account information and is erroneously processing the data to automate sweeping across multiple accounts resulting in financial losses. | TPP | TPP | Direct Losses & Open Finance Compensation | 500 |
Data shared by LFI outside of Consent or without Valid Consent and Authentication | The TPP has requested only User information for Identity Verification use case but the LFI ends up sending transactional data as well. | LFI | LFI | Direct Losses & Open Finance Compensation | 750 |
Data transmitted incorrectly by LFI leading to, inaccuracies, or is mis-mapped to Open Finance data model, in LFI mastered and stored Data | The LFI response to request by TPP has poor quality of data where information is either missing or incorrectly mapped to the OF data model adversely impacting the quality and reliability of the service offered by the TPP to the User. | LFI | LFI | Direct Losses & Open Finance Compensation | 500 |
Data shared by LFI which contained inaccuracies from the LFI mastered and stored Data | The LFI response to request by TPP has poor quality of data where information is either missing or incorrectly mapped to the OF data model adversely impacting the quality and reliability of the service offered by the TPP to the User. | LFI | LFI | Direct Losses & Open Finance Compensation | 500 |
Data Shared from an LFI containing inaccuracies in User contributed Data | An LFI disseminates data involving the user that contains errors or inaccuracies, which could potentially affect the user's financial interactions or status. | LFI | User | Direct Losses | N/A |
Misrepresentation of any Open Finance data or quotes by TPP to User or other Open Finance participants | TPP has knowingly used account information from only 2 out of 4 accounts held by the User across LFIs to assess their creditworthiness which is not a true reflection of the User’s financial position. The TPP has offered the User a more expensive product or inaccurate advice based on such assessment. | TPP | TPP | Direct Losses & Open Finance Compensation | 500 |
TPP fails to conduct Confirmation of Payee (CoP) when the user is setting up a new beneficiary | Where functionally possible, TPP is liable if it does not require the customer to attempt to verify the beneficiary’s account details through a Confirmation of Payee check, leading to an incorrect or fraudulent transfer.1 | TPP | TPP | Direct Losses | 250 |
TPP fails to conduct Confirmation of Payee (CoP) during the onboarding process of a new merchant onto the TPP platform | Where functionally possible, TPP is liable if it does not require the customer to attempt to verify the merchant’s account details through a Confirmation of Payee check, resulting in misrepresentation or unauthorized access | TPP | TPP | Direct Losses | 500 |
2.4 Payments
Issue | Example / Requirement | Liable Party | Responsible Party | Extent of Redress | OF Compensation / AED |
|---|---|---|---|---|---|
Inaccurate or inconsistent payment initiation / execution due to incorrect beneficiary details supplied and approved by User | The User has provided an incorrect beneficiary proxy and not verified the resolved beneficiary details resulting in an error. | User | User | N/A | N/A |
Inaccurate or inconsistent payment initiation / execution due to incorrect beneficiary details supplied by TPP | The TPP has incorrectly configured the receiving account of their onboarded merchant resulting in misdirected payments from users for purchase of goods eventually causing fulfillment issues. | TPP | TPP | Direct Losses & Open Finance Compensation | 350 |
Inaccurate or inconsistent payment initiation / execution due to incorrect beneficiary details supplied by LFI (including via inaccurate proxy resolution) | The LFI has incorrectly resolved the beneficiary proxy provided by the User resulting the payment sent to the incorrect beneficiary. | LFI | LFI | Direct Losses & Open Finance Compensation | 350 |
Payment initiation by TPP request contains mismatch to User stated intention / awareness | The shipping and/or service charges were obfuscated while requesting authorization for an eCommerce purchase resulting in the User feeling overcharged. | TPP | TPP | Direct Losses & Open Finance Compensation | 350 |
Fraudulent or erroneous payment initiation occurring using VRP or Delegated SCA payment consent by TPP | The User acknowledges that they authorized a Long-lived consent but is unable to recognize/reconcile transaction(s) for which they were not physically present Or they had not physically authorized the TPP to initiate the transaction(s). | TPP | TPP | Direct Losses & Open Finance Compensation | 500 |
Fraud monitoring of all payment activity from LFI held accounts | The LFI was not able to flag alerts and protect the User from fraud in spite of sharp increase in the transaction frequency or value for payments initiated by TPP using VRP or delegated SCA. | LFI | LFI | Direct Losses & Open Finance Compensation | 250 |
Payment initiated outside of VRP / future dated payment / bulk payment / part payment / refund consent | Processing errors possible by LFI where an LFI makes the incorrect copies of the consent from OFP and therefore add an inaccurate validation process. | TPP | TPP | Direct Losses & Open Finance Compensation | 350 |
Fraudulent payment requests (including RTP and similar) issued via a TPP | Fraudulent Request to pay using OF wherein User ends up making payments to a fabricated bank account. | TPP | User (Requesting) | Direct Losses & Open Finance Compensation | 500 |
Failure to execute payment within SLA by LFI, following valid payment initiation | The User has lost out on favorable contracts which depend on time sensitive purchases like trading for stocks or buying forex because the LFI took too long to execute such payments. | LFI | LFI | Direct Losses & Open Finance Compensation | 350 |
Inaccurate or Incomplete articulation of Payment Consent for VRP or Delegated SCA to User | User was not unambiguously presented the available controls in form of transaction limits for a VRP which resulted in payments being initiated which were not as expected by the User. | TPP | TPP | Direct Losses & Open Finance Compensation | 350 |
Payment amount / date / currency / description / LFI / source account incorrect due to User Input | Payment details such as amount, date, currency, or account source are incorrect due to errors entered by the user, leading to failed or erroneous transactions. | User | User | N/A | N/A |
Payment amount / date / currency / description incorrect due to LFI processing error | The LFI system had addition or transposition errors or a glitch where mandatory payment references like those for Card/Bill payments were truncated. All of these could lead to erroneous execution of payment. | LFI | LFI | Direct Losses & Open Finance Compensation | 350 |
Payment amount / date / currency / description incorrect due to TPP processing error | The TPP system had addition or transposition errors or a glitch where mandatory payment references like those for Card/Bill payments were truncated. All of these could lead to erroneous execution of payment by the LFI. | TPP | TPP | Direct Losses & Open Finance Compensation | 350 |
AML / Financial Crime responsibilities for Payments including Transactional Monitoring and PEP / Sanction / Terrorism screening | The LFI must screen all payments required to be screened by AML regulation and legislation. | LFI | LFI | Direct Losses | N/A |
Payment execution duplication by LFI | The Payment has been executed incorrectly by the LFI (e.g. taken twice due to technical glitch). | LFI | LFI | Direct Losses & Open Finance Compensation | 350 |
Payment initiation duplication by TPP | The TPP system has a technical glitch where the Payment initiated as part of a VRP or delegated SCA is duplicated. | TPP | TPP | Direct Losses & Open Finance Compensation | 350 |
Breach of contract or misrepresentation by Merchant | Failure to deliver complete, usable or functional goods / services , as they were described, despite valid and completed payment via Open Finance, including in the case of Merchant insolvency | Merchant3 | Merchant3 | Direct Losses & Open Finance Compensation | 100 |
Merchant legitimacy and consistency of Entity Name / Account Name / KYC Status at LFI / Trading Name as presented to the User | The TPP must onboard the merchant via a KYB process which ensures that the trading name represented to their customers as part of payment collections processes are legitimate and are approved legally with relevant authorities. | TPP | TPP | Direct Losses & Open Finance Compensation | 500 |
User legitimacy and consistency of Legal Name / Account Name / KYC Status at LFI as presented within Open Finance ecosystem | The TPP must onboard individual users via a process which utilizes their KYC-ed record at an LFI, which contains verified data and has not expired as a valid KYC record. The user must only represent themselves on the OF platform and in OF transactions with the same name to be held at the LFI. | TPP | LFI | Direct Losses & Open Finance Compensation | 350 |
Inaccurate or invalid charging of customer for goods / services, when payment for those goods / services is settled via Open Finance payment initiation | The shipping and/or service charges were obfuscated while requesting authorization for an eCommerce payment resulting in the User feeling overcharged. | Merchant3 | Merchant3 | Direct Losses & Open Finance Compensation | 100 |
Refund failed to be initiated and completed from Merchant, despite complete return of goods / inability to utilise services, as they were described or delivered | The refund was only partially paid, despite a full refund being agreed / an entitlement of the customer, given the circumstances. | Merchant3 | Merchant3 | Direct Losses & Open Finance Compensation | 100 |
Payment funded from an incorrect account, caused by LFI error | The debited account for an OF initiated payment was one other than the one selected by the User with the TPP, due to a LFI processing error. | LFI | LFI | Direct Losses & Open Finance Compensation | 150 |
Payment funded from an incorrect account, caused by TPP error | The debited account for an OF initiated payment was one other than the one selected by the User with the TPP, due to a TPP user interface error. | TPP | TPP | Direct Losses & Open Finance Compensation | 150 |
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