Not upheld: Credit file / adverse marker disputes complaint against National Westminster Bank Public Limited Company (NatWest)

Decision detail

Summary

Mrs S complained that NatWest unfairly registered a default on her credit card account after she was unable to make payments due to hospitalization and ill health in March 2025. NatWest agreed to a three-month breathing space with interest frozen in May 2025 after Mrs S explained her situation, but when payments did not resume after this period and Mrs S did not contact the firm again until November 2025, NatWest issued a Notice of Default and subsequently registered a default. Mrs S argued the default was unfair given her valid health reasons for non-payment and claimed she was too unwell to understand the correspondence or what she was agreeing to. The ombudsman did not uphold the complaint, finding that NatWest had shown appropriate forbearance, that the agent had checked Mrs S's capacity during the May call and she had confirmed she could manage her finances, and that the default was registered in line with ICO guidance after the account had been in arrears for approximately six months. The ombudsman concluded that NatWest had a responsibility to report accurate information to Credit Reference Agencies and that it would not be reasonable to hold the account indefinitely, even considering Mrs S's vulnerabilities.

The Ombudsman's reasoning

The ombudsman found that NatWest treated Mrs S fairly and showed appropriate forbearance by offering breathing space, interest freezes, and a reduced repayment plan. Although Mrs S was vulnerable and unwell, the agent checked her capacity during the May call and she confirmed she could manage her financial matters. The ombudsman noted that NatWest made clear arrears would accrue and that new arrangements would be needed after the breathing space expired. Since Mrs S did not contact NatWest again until November 2025, the firm could not have known she was not opening letters or understanding the situation. Crucially, the ombudsman found that regardless of the reasons for the arrears, Mrs S did miss payments, and NatWest has a responsibility to report accurate information to Credit Reference Agencies. The default was registered in line with ICO guidance recommending defaults after three to six months of arrears. The ombudsman concluded that even with Mrs S's vulnerabilities in mind, it would not be reasonable or responsible for NatWest to hold the account indefinitely.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website