Not upheld: debt management - refusal of repayment arrangement and account defaulting complaint against NATIONAL WESTMINSTER BANK PUBLIC LIMITED COMPANY (NatWest)

Decision detail

Summary

Mr O complained that NatWest unreasonably refused to accept a revised repayment arrangement for his two loans in August 2025 and proceeded to default his accounts. Mr O had been struggling with repayments since late 2022, had entered into eight failed repayment arrangements, and by early 2023 had reached five to six months in arrears with no disposable income. The ombudsman upheld NatWest's position, finding that eight failed arrangements far exceeded their normal threshold of three, and that ICO guidance supported defaulting when arrears reached three to six months and arrangements had repeatedly failed. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied ICO guidance which states defaults may be recorded when relationships break down, typically at three months in arrears and normally by six months. Given Mr O had eight failed arrangements far exceeding NatWest's normal threshold of three, and had reached five to six months in arrears by early 2023 with no disposable income, it was reasonable for NatWest to refuse a further arrangement and proceed to default. The pattern demonstrated Mr O could not maintain agreed repayments.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website