Not upheld: failure to protect vulnerable customer from gambling harm complaint against National Westminster Bank Plc

Decision detail

Summary

Mr H, who has mental health conditions including ADHD and neurodivergence that lead to impulsive gambling behaviour, complained that NatWest should have refunded gambling transactions totalling £3,500 made from a new account he opened in May 2025. Although NatWest had been aware of his vulnerabilities since October 2024 and had placed restrictions on his existing account, Mr H had opened the new account without setting up any restrictions. The ombudsman found that it was Mr H's responsibility to apply restrictions to the new account, not NatWest's obligation to do so automatically, and that the bank's systems are designed to prevent fraud rather than to prevent customers from making authorised transactions. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that while NatWest was aware of Mr H's vulnerabilities and had placed restrictions on his existing account, Mr H had opened a new account without setting up restrictions on it. The ombudsman concluded it was Mr H's responsibility to apply restrictions to the new account, not NatWest's obligation to do so automatically. Additionally, the bank's systems are designed to identify unusual payments as a safeguard against fraud and unauthorised use, not to prevent customers from making authorised transactions they choose to make. The fact that payments were unusual was not sufficient to require the bank to block them.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website