Not upheld: treatment during financial difficulty, post-death account handling, joint account status complaint against National Westminster Bank Public Limited Company (NatWest)

Decision detail

Summary

Mrs A, on behalf of her late husband Mr O's estate, complained that NatWest failed to treat Mr O fairly during financial difficulties in 2009 and incorrectly handled accounts held jointly with his mother Mrs R after both had passed away. Mrs A contended that Mr O should have been added as a third party helper only, not a joint account holder, and that funds from Mrs R's accounts should not have been used to offset Mr O's debt. NatWest maintained that Mr O was properly added as a joint account holder by signed form in 2018 and that it followed correct procedures in converting the accounts to his sole name after Mrs R's death in 2021, then offsetting the funds against his outstanding debt when he died in 2024. The ombudsman found no evidence that NatWest acted incorrectly, noting the clear joint account form, Mr O's failure to dispute the arrangement when notified, and that NatWest's treatment during the 2009 financial difficulties was consistent with fair practice.

The Ombudsman's reasoning

The ombudsman found that the signed form clearly indicated Mr O was being added as a joint account holder rather than a third party, and this would have been clear to both parties. Mrs R's capacity to sign a general power of attorney months later suggested she understood the earlier forms. Mr O did not dispute the joint account status when notified in December 2021, which would have been expected if he believed the arrangement was incorrect. Regarding the financial difficulties, the limited available evidence showed NatWest maintained regular contact, offered hardship plans, assessed Mr O's circumstances, and only terminated the account when he demonstrated no affordability - all consistent with fair treatment. The ombudsman noted that pursuing debt repayment does not itself constitute unfair treatment.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website