Not upheld: administration and service failures; irresponsible credit limit reduction complaint against NATIONAL WESTMINSTER BANK PUBLIC LIMITED COMPANY
Financial Ombudsman decision DRN-6055373 of 2026-05-06T00:00:00+00:00. administration and service failures; irresponsible credit limit reduction complaint against NATIONAL WESTMINSTER BANK PUBLIC LIMITED COMPANY. Outcome: Not upheld.
Decision detail
| Reference | DRN-6055373 |
|---|---|
| Decision date | 2026-05-06T00:00:00+00:00 |
| Firm | NATIONAL WESTMINSTER BANK PUBLIC LIMITED COMPANY |
| Product | Credit card |
| Claim type | administration and service failures; irresponsible credit limit reduction |
| Outcome | Not upheld |
| Remedy | NatWest's offer of £200 compensation stands as fair and reasonable. No further action required from the bank. |
Summary
Mr S complained to NatWest about multiple administrative issues with his credit card, including failed attempts to set up a direct debit via the mobile app, a non-delivery of a requested new card, misinformation about a payment link, and a subsequent credit limit reduction. NatWest acknowledged some errors and offered £200 compensation but rejected complaints about the direct debit setup and credit limit reduction. The ombudsman found that while NatWest's service was deficient, Mr S had alternative payment methods available and could have mitigated the missed payments, and the bank acted within its rights in reducing the credit limit. The ombudsman upheld NatWest's £200 compensation offer as fair and reasonable, finding no further action necessary.
The Ombudsman's reasoning
The ombudsman acknowledged NatWest's administrative failures but found that Mr S had alternative payment methods available (branch visits, debit card payments) that he had previously used successfully. While NatWest could have provided better service, Mr S could have taken further steps to mitigate missed payments. The credit limit reduction was within NatWest's contractual rights given the missed payments. The £200 compensation was deemed appropriate for the service failures.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| NATIONAL WESTMINSTER BANK PUBLIC LIMITED COMPANY, all decisions | 1,172 | 13% |
| Credit card, all decisions | 25,211 | 22% |
Source
Read the original decision on the Financial Ombudsman Service website