Digital bank bunq fined for late response to fraud complaints
The Financial Markets Authority (AFM) of the Netherlands has imposed an administrative fine of €170,000 on bunq B.V.
The main reason for the fine is bunq’s failing to respond in a timely manner to seven complaints from customers who were victims of online fraud. Customers who filed a complaint only received feedback from bunq several weeks after the deadline had expired.
Payment service providers, such as bunq, are required to provide a substantive response to all points mentioned in the complaint within fifteen working days of receipt. However, in the period from 10 November 2023 to 12 December 2023 and between 23 April 2024 and at least 1 August 2024, bunq failed to provide a substantive response within the legally required timeframe in seven cases.
The AFM has investigated bunq’s handling of complaints regarding customers who became victims of online fraud. These customers sometimes lost tens of thousands of euros and sought contact with bunq. This contact was difficult, and customers felt compelled to file a complaint with bunq.
Furthermore, even after filing a complaint, they had to wait weeks for a response. These behaviors do not align with the level of service a customer could expect from bunq.
In certain cases, the law entitles customers who fall victim to online fraud to compensation. Bunq explained that the customers in this investigation were not entitled to this. Nevertheless, Bunq fully or largely compensated the affected customers. This does not remove the uncertainty of customers during the period of the violation, but it does show that Bunq ultimately acted in the best interests of the customers.
Bunq’s conduct regarding the compensation of customers has prompted the AFM to reduce the fine. A base fine of €500,000 applies to the established violation. The AFM has reduced the fine amount to €200,000. In addition, due to the chosen simplified settlement procedure, an additional reduction of 15% has been applied, bringing the fine to €170,000. With this decision, the case is closed under the simplified settlement procedure.
