Not upheld: account handling and service following debt relief order notification complaint against National Westminster Bank Public Limited Company

Decision detail

Summary

Mr C complained that NatWest froze his account without warning following approval of his debt relief order on 19 January 2026 and notification to the bank on 22 January 2026. NatWest immediately froze the account to comply with regulatory requirements and Mr C experienced difficulty contacting the bank. NatWest downgraded the account to a foundation account and ordered a new debit card on the same day it received notice. The ombudsman found that NatWest acted fairly and reasonably, downgrading the account as quickly as possible after receiving notification, and that Mr C should have been advised of DRO procedures by his adviser. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that NatWest was not aware of the DRO until receiving formal notice and was required by regulation to freeze the account. The ombudsman considered whether NatWest could have taken alternative action and concluded that it downgraded the account and ordered a new debit card as quickly as possible after receiving notice. The ombudsman noted that Mr C should have been advised about DRO procedures by his adviser and could potentially have applied for a foundation account before the DRO was finalised. The ombudsman was satisfied that NatWest acted appropriately and as quickly as it could in the circumstances.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website