Not upheld: default registration and credit file reporting following joint account holder's IVA complaint against National Westminster Bank Public Limited Company (NatWest)
Financial Ombudsman decision DRN-6262524 of 2026-05-14T00:00:00+00:00. default registration and credit file reporting following joint account holder's IVA complaint against National Westminster Bank Public Limited Company (NatWest). Outcome: Not upheld.
Decision detail
| Reference | DRN-6262524 |
|---|---|
| Decision date | 2026-05-14T00:00:00+00:00 |
| Firm | National Westminster Bank Public Limited Company (NatWest) |
| Product | joint account |
| Claim type | default registration and credit file reporting following joint account holder's IVA |
| Outcome | Not upheld |
| Remedy | No remedy ordered. The ombudsman noted that Miss B still has the option to repay the outstanding amount, which would show the account as settled (though the default marker would remain for six years). The ombudsman also noted that NatWest has explained how Miss B can add a correction note to her credit file. |
Summary
Miss B complained that NatWest unfairly applied a default to her joint account without proper notice after her ex-partner entered into an IVA. NatWest froze the account and subsequently registered it as being in default on Miss B's credit file. Miss B claimed she was not made aware of the default and that she had contacted NatWest multiple times offering to repay. The ombudsman found that NatWest sent a letter and email to Miss B on 12 August 2025 explaining the freeze and inviting repayment, with audit trail evidence confirming proper delivery. The ombudsman noted that Miss B's first recorded contact with NatWest was nearly two months later, and found that NatWest acted reasonably in registering the default by that time. The complaint was not upheld.
The Ombudsman's reasoning
The ombudsman found that it is accepted industry practice to register debts as being in default when a joint account holder enters into an IVA. However, it is fair to give the other joint account holder an opportunity to repay first. NatWest provided this opportunity through a letter and email on 12 August 2025, which the ombudsman found was correctly addressed and sent based on audit trail evidence. Although Miss B claims she did not receive the letter, the ombudsman was satisfied NatWest took reasonable steps to contact her. The ombudsman noted that Miss B's first recorded contact with NatWest was nearly two months later (6 October 2025), by which time the default had already been registered. The ombudsman found this timing reasonable and that Miss B had the onus to make repayments within a reasonable period if she wanted to avoid adverse credit reporting. The ombudsman also noted that the situation arose due to the ex-partner's IVA rather than any error by NatWest, and NatWest could not be held responsible for the ex-partner's failure to inform Miss B.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| National Westminster Bank Public Limited Company (NatWest), all decisions | 112 | 8% |
Source
Read the original decision on the Financial Ombudsman Service website