Partially upheld: Account administration errors complaint against NATIONAL WESTMINSTER BANK PUBLIC LIMITED COMPANY (NatWest)

Decision detail

Summary

Mr D complained about NatWest placing a block on his personal and business account on 3 September 2025 following a disputed transaction, which prevented him from accessing funds over a weekend. He claimed he missed a trade fair and lost business opportunities as a result. NatWest provided incorrect instructions about contacting the security team and continued giving wrong guidance even after the block was removed on 8 September 2025. The ombudsman found the account block was justified as a reasonable fraud prevention measure and the investigation period was not excessive, but upheld the complaint regarding service failures in providing incorrect contact instructions. The ombudsman rejected claims for lost business opportunities but awarded £400 total compensation for inconvenience and frustration caused by the service errors.

The Ombudsman's reasoning

The ombudsman found that NatWest was entitled to place the block on the account as it had received information suggesting potential fraud, and the investigation period of approximately 5 working days was reasonable. However, NatWest made service errors by providing incorrect instructions about how to contact the security team and continuing to give wrong instructions after the block was removed. The ombudsman rejected Mr D's claim for compensation for lost business opportunities, as these losses were a consequence of the reasonably-applied restrictions rather than service failures. The ombudsman considered £400 total compensation (£200 already paid plus £200 additional) to be fair and proportionate for the inconvenience and frustration caused by the service failures.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website