Not upheld: unfair default registration complaint against National Westminster Bank Public Limited Company (NatWest)

Decision detail

Summary

Mr O complained that NatWest unfairly defaulted his loan account in November 2025 after he fell into arrears. He had contacted NatWest in June 2025 about financial difficulties and received 30 days breathing space, but subsequently missed the 25 October 2025 deadline to pay £404.82 in arrears, although he made partial payments shortly before and after the deadline. The ombudsman found NatWest acted fairly by complying with ICO guidance, providing appropriate forbearance and support, and issuing proper notice. The complaint was not upheld as Mr O failed to meet the deadline and did not re-engage with NatWest to discuss a repayment plan after the breathing space period ended.

The Ombudsman's reasoning

NatWest complied with ICO guidance which permits default registration when a consumer is at least three months behind with payments. By 21 September 2025, Mr O had been behind by at least one payment for three months. NatWest provided appropriate forbearance including 30 days breathing space, support, signposting to debt advice charities, and proper notice before defaulting. Although Mr O demonstrated he could make contractual payments and nearly cleared arrears by 28 October 2025, he failed to meet the 25 October 2025 deadline and did not contact NatWest to discuss a repayment plan. Given Mr O's indication in June 2025 that his circumstances were unlikely to improve and his failure to re-engage after the breathing space period ended, NatWest could not reasonably have known he intended to make further payments.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website