Not upheld: unauthorized transactions / disputed payments complaint against National Westminster Bank Public Limited Company (NatWest)

Decision detail

Summary

Miss J complained that NatWest held her liable for insurance premiums taken from her credit card in 2024 without her permission, and later disputed additional spending dating back to 2021. NatWest maintained that Miss J had authorized the transactions. The ombudsman examined technical evidence including card history, PIN changes, biometric data, and online banking logins, and found that the consistent pattern of insurance payments since 2022 without prior dispute, combined with regular device logins and no signs of fraud, indicated Miss J likely authorized the transactions. The ombudsman rejected the argument that the existence of funds in another bank account meant the credit card would not be used. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the standard that a consumer is only responsible for transactions they have authorized. The key reasoning was that: (1) insurance payments had been made consistently since 2022 without dispute, suggesting authorization; (2) the technical evidence showed no signs of fraud or unauthorized access; (3) the presence of funds in another account does not mean the credit card would not be used for spending; (4) Miss J had regular device logins to online banking since 2021, so she should have noticed unauthorized spending much sooner; and (5) the absence of PIN changes or biometric changes supported the conclusion that Miss J authorized the transactions.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website