Partially upheld: payment recall process and customer service complaint against National Westminster Bank Public Limited Company

Decision detail

Summary

Miss D mistakenly sent £1200 via faster payment to the wrong payee and requested NatWest recall the funds. NatWest raised a recall request but initially told Miss D they couldn't see it on the system, requiring a second request. The beneficiary's bank responded that the claim was disputed, but the recipient later stated his account was under investigation with no bank communication about the recall. The ombudsman found NatWest properly followed regulatory requirements for the recall process and could not be held responsible for the beneficiary's bank's response or the inconsistency in information. However, NatWest's customer service failings in providing incorrect information and not proactively offering contact details warranted £100 compensation.

The Ombudsman's reasoning

The ombudsman found that NatWest complied with regulatory requirements by raising the recall request promptly. Once the recall was sent, responsibility shifted to the beneficiary's bank to determine if funds were available and could be returned. NatWest could not know whether the reason given by the beneficiary's bank was correct and relied entirely on information provided by that bank. When Miss D queried the inconsistency, NatWest appropriately sought clarification. However, NatWest's customer service was deficient in initially telling Miss D the recall couldn't be seen on the system and in failing to provide contact details for the beneficiary until asked.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website