Not upheld: loan administration, account closure, disputed debits, obstruction of insolvency process complaint against National Westminster Bank Public Limited Company
Financial Ombudsman decision DRN-6173254 of 2026-04-23T00:00:00+00:00. loan administration, account closure, disputed debits, obstruction of insolvency process complaint against National Westminster Bank Public Limited Company. Outcome: Not upheld.
Decision detail
| Reference | DRN-6173254 |
|---|---|
| Decision date | 2026-04-23T00:00:00+00:00 |
| Firm | National Westminster Bank Public Limited Company |
| Product | business loan (Bounce Back Loan) |
| Claim type | loan administration, account closure, disputed debits, obstruction of insolvency process |
| Outcome | Not upheld |
| Remedy | None. The ombudsman did not require NatWest to take any further action. |
Summary
C, a limited company, complained that NatWest wrongly removed £525.29 from its accounts between June and September 2024, obstructed its voluntary liquidation process, and doctored bank statements. C had obtained a £50,000 Bounce Back Loan in 2020 and ceased trading in July 2024. The ombudsman found that NatWest properly administered the loan according to its terms, that the disputed debits were legitimate (consisting of contractual interest payments and a correction for calculation error), and that the bank was not obliged to identify C's technical insolvency or act differently. The ombudsman rejected allegations of fraud and statement tampering, finding no evidence of wrongdoing and declining to order any remedy.
The Ombudsman's reasoning
The ombudsman found that NatWest administered the BBL in accordance with the agreement terms, which clearly specified repayment obligations after the 12-month holiday period. The disputed transactions were legitimate: the £194.04 was BBL interest debited from the current account during a capital repayment holiday (consistent with the loan terms), and the £155.95 was a correction for interest calculation error. The bank was not obliged to identify C's technical insolvency or treat it differently, and allowing transactions to continue after trading ceased was normal practice during wind-up. The ombudsman rejected allegations of fraud and statement tampering, noting that transaction listings in the format provided are routine.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| National Westminster Bank Public Limited Company, all decisions | 1,179 | 14% |
Source
Read the original decision on the Financial Ombudsman Service website