Not upheld: irresponsible lending complaint against National Westminster Bank plc

Decision detail

Summary

Miss M complained that NatWest acted irresponsibly by providing her with a £500 overdraft in May 2023 and subsequently increasing it to £5,000 in June 2024. The ombudsman examined the checks NatWest carried out and reviewed Miss M's current account statements and credit file information. Finding no evidence of financial difficulties or over-extension of borrowing capability, and determining that the checks were reasonable and proportionate, the ombudsman did not uphold the complaint. The ombudsman also found that NatWest acted fairly when closing Miss M's account in March 2025 and providing breathing space support in July 2025.

The Ombudsman's reasoning

The ombudsman found that NatWest's checks for the initial overdraft were reasonable and proportionate given the £500 limit and known circumstances. For the substantial increase to £5,000, while full credit check details were not provided, the ombudsman examined Miss M's current account statements and found no evidence of financial difficulties or over-extension of borrowing capability. The ombudsman also found NatWest acted fairly in closing the account and providing support through breathing space provisions.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website