Not upheld: irresponsible lending complaint against National Westminster Bank plc
Financial Ombudsman decision DRN-6228827 of 2026-05-08T00:00:00+00:00. irresponsible lending complaint against National Westminster Bank plc. Outcome: Not upheld.
Decision detail
| Reference | DRN-6228827 |
|---|---|
| Decision date | 2026-05-08T00:00:00+00:00 |
| Firm | National Westminster Bank plc |
| Product | loan |
| Claim type | irresponsible lending |
| Outcome | Not upheld |
| Remedy | NatWest must: (1) calculate total repayments made by Mr K against total amounts received; (2) if Mr K overpaid, refund overpayments with 8% simple interest and remove all adverse credit file information; (3) if capital remains outstanding, arrange an affordable payment plan and remove adverse information once cleared; (4) buy back debts from third party or liaise with them to ensure redress is carried out; (5) ensure no interest or charges are applied under the loan agreements. |
Summary
Mr K complained that NatWest irresponsibly provided him with three loans (£4,000 in February 2022, £5,000 in March 2023, and £6,500 in May 2024). NatWest initially offered compensation for the third loan only but subsequently agreed it had lent irresponsibly on all three loans. Mr K defaulted on the loans, which were later passed to a debt collection business. The ombudsman found NatWest's offer of redress to be fair, requiring the firm to remove interest and charges, arrange affordable repayment plans for any outstanding capital, and clear adverse credit file information once repaid, but rejecting Mr K's request to write off the borrowed funds entirely.
The Ombudsman's reasoning
The ombudsman accepted NatWest's agreement that it had lent irresponsibly and found the firm's offer of redress to be fair and in line with FOS approach to such cases. The ombudsman rejected Mr K's argument that the loan funds should be written off, finding that while NatWest should not have granted the loans, Mr K should still repay the capital borrowed. The redress offered, including removal of adverse credit file information and arrangement of affordable repayment plans, was deemed appropriate compensation.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| National Westminster Bank plc, all decisions | 11,490 | 19% |
Source
Read the original decision on the Financial Ombudsman Service website