Not upheld: loan application handling and alleged misrepresentation complaint against National Westminster Bank Plc

Decision detail

Summary

E, a company, applied for a £50,000 business loan through National Westminster Bank Plc in June 2025. The application was declined after two weeks, and Mr H complained on behalf of E that the relationship manager had misrepresented the likelihood of approval, failed to keep him updated, and had not disclosed key underwriting criteria. The ombudsman found that the relationship manager's reassurance was not a misrepresentation as he made clear that credit department approval was required, that the applicant was kept reasonably updated, and that banks are not obliged to disclose lending criteria in advance. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the principle that lending decisions are matters of commercial judgment for the lender and this service will not usually interfere with them. The ombudsman found that the relationship manager's reassurance about supporting the application was not a misrepresentation, as he made clear that credit department approval was required. The ombudsman determined that banks are not obliged to disclose lending criteria in advance, as doing so might discourage applications. The ombudsman found the relationship manager kept Mr H reasonably updated on progress and that the two-week decision timeframe was reasonable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website