Not upheld: default recording, incorrect information, missed call backs, service failures complaint against NATIONAL WESTMINSTER BANK PUBLIC LIMITED COMPANY (NatWest)

Decision detail

Summary

Mr I complained that NatWest recorded a default on his credit card account after providing incorrect information that his account would be placed on hold. Mr I had experienced financial difficulties, missed payments, and disclosed mental health issues. NatWest had issued a default notice in April 2025 and terminated the account on 15 August 2025, but on 4 September 2025 an adviser incorrectly told Mr I the account would be placed on hold. The ombudsman found the default was appropriately applied given the missed payments and prior warnings, but acknowledged the upset caused by the incorrect information and missed call backs. The ombudsman upheld NatWest's offer of £200 total compensation as fair and reasonable, declining to require removal of the default or award additional compensation.

The Ombudsman's reasoning

The ombudsman found that while NatWest provided incorrect information and failed to return call backs, the default was appropriately applied because Mr I had missed several payments and was issued a default notice on 5 April 2025. The account termination on 15 August 2025 was reasonable given the missed payments and prior warning letters. The incorrect information on 4 September 2025 could not have changed the outcome as the account had already been terminated. However, the ombudsman acknowledged the upset caused by the incorrect information and missed call backs, particularly given Mr I's vulnerable status and mental health issues, and found the £200 compensation offer fair and reasonable.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website