Not upheld: payment processing error and misinformation complaint against NATIONAL WESTMINSTER BANK PUBLIC LIMITED COMPANY

Decision detail

Summary

Mr T complained that NatWest processed a £1,818.20 payment at 7:30 AM on 30 July 2025, causing his account to exceed his overdraft limit. When NatWest staff incorrectly told him via chat that the payment would be reversed, Mr T arranged a duplicate payment the following day, resulting in the payment being sent twice and the account again exceeding the overdraft limit. Although the ombudsman found NatWest's payment processing time was standard practice, it upheld the £200 compensation already paid for the misinformation, finding it fair and reasonable given the stress caused by the error and the importance of the tax payment involved.

The Ombudsman's reasoning

The ombudsman found that NatWest's processing of the payment outside standard business hours was in line with standard modern banking practice and not unfair, as consumers are responsible for ensuring sufficient funds on the payment date. However, the ombudsman agreed that Mr T was misadvised about the payment reversal, which caused genuine stress and confusion, particularly given the importance of the tax payment. The £200 compensation was deemed fair and in line with the ombudsman service's awards for similar situations involving misinformation and resulting inconvenience.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website