Not upheld: debt write-off request refusal and financial difficulties support complaint against National Westminster Bank PLC

Decision detail

Summary

Mr M complained that NW refused to write off his credit card balance despite providing medical evidence of severe mental health issues. He also complained about service failures including a lost income/expenditure form and lack of email contact for the Financial Health and Support Team. The ombudsman found that debt write-off is a commercial decision for the lender, and NW's reasons for declining (Mr M's mortgage, recent account opening, and continued card usage) were fair and reasonable. The ombudsman determined NW responded appropriately to Mr M's financial difficulties by requesting financial information, offering a payment plan, and providing support referrals. The service issue regarding the lost form was resolved reasonably with £50 compensation. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman determined that writing off a credit card balance is a commercial decision solely for the lender to make, and the FOS cannot require a lender to write off debt on medical grounds. However, the FOS can assess whether the decision was made fairly. NW's reasons for declining the write-off were reasonable: Mr M had a mortgage (indicating some financial capacity), the account was opened after his medical issues arose, and he continued to use and increase the balance after requesting the write-off. The ombudsman found NW responded positively and sympathetically to Mr M's financial difficulties by requesting income/expenditure information, offering a payment plan, and signposting support services. The service issue regarding the lost form was resolved reasonably and the £50 compensation was appropriate. The ombudsman noted it cannot determine discrimination claims, which are matters for courts.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website