Not upheld: treatment following IVA notification; exercise of set-off rights; account access restrictions; service failures in advice provision complaint against National Westminster Bank Public Limited Company (NatWest)
Financial Ombudsman decision DRN-6120963 of 2026-06-12T00:00:00+00:00. treatment following IVA notification; exercise of set-off rights; account access restrictions; service failures in advice provision complaint against National Westminster Bank Public Limited Company (NatWest). Outcome: Not upheld.
Decision detail
| Reference | DRN-6120963 |
|---|---|
| Decision date | 2026-06-12T00:00:00+00:00 |
| Firm | National Westminster Bank Public Limited Company (NatWest) |
| Product | Current account |
| Claim type | treatment following IVA notification; exercise of set-off rights; account access restrictions; service failures in advice provision |
| Outcome | Not upheld |
| Remedy | No additional remedy ordered. The £200 compensation already paid by NatWest was deemed reasonable and in line with FOS standards for the inconvenience caused by service failings. |
Summary
Miss B complained about NatWest's treatment following her entry into an IVA in May 2025. After being notified of the IVA in June 2025, NatWest exercised its right of set-off by taking £541.20 from her foundation account to offset an overdraft debt, and restricted her access to all accounts, preventing her benefits from being paid in. Miss B also received incorrect information from NatWest advisors and experienced delays in complaint resolution. The ombudsman found that NatWest's actions were in line with its account terms and standard banking practice for IVA cases, and that the £200 compensation already paid was reasonable for the service failings identified. The complaint was not upheld.
The Ombudsman's reasoning
The ombudsman found that NatWest's actions were in line with its account terms and normal banking practice when consumers enter IVAs. The set-off of credit balances against debts and the restriction of account access are standard procedures that should be communicated by insolvency practitioners. While NatWest made some service errors in providing incorrect information and taking longer than expected to respond to the complaint, these were adequately addressed by the £200 compensation already paid. The ombudsman noted that Miss B was informed in writing within days of the IVA notification about the need to open a basic account, and she was subsequently allowed to access additional funds.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| National Westminster Bank Public Limited Company (NatWest), all decisions | 92 | 5% |
| Current account, all decisions | 45,590 | 19% |
Source
Read the original decision on the Financial Ombudsman Service website