Not upheld: loan terms discrepancy and charges complaint against National Westminster Bank Public Limited Company

Decision detail

Summary

Miss D complained that NatWest opened a personal loan with monthly repayments of £398.43 instead of the £397.56 stated in the Pre-Contract Credit Information, without adequate explanation. NatWest explained that the delay in the first repayment date (28 October 2025 instead of approximately one month after drawdown on 17 September 2025) resulted in additional interest accrual and a higher monthly payment. The ombudsman found that NatWest had notified Miss D of the revised amount on the day the loan was accepted, the Loan Agreement contained provisions allowing for such adjustments, and Miss D had a 14-day cancellation period. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that while the PCCI stated initial figures, it also contained a disclaimer that it was not an offer and could be subject to change. The Loan Agreement clearly set out the assumptions regarding repayment timing and stated that variations could result in changes to interest and monthly payments. NatWest notified Miss D of the specific change on the day the loan was accepted, explaining the reason for the difference. The ombudsman concluded that NatWest had not made an error in calculating interest and had properly communicated the change to Miss D, who had the opportunity to cancel within the 14-day cancellation period if dissatisfied.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website