Upheld: fraudulent loan application / joint liability without consent complaint against National Westminster Bank Plc (NatWest)

Decision detail

Summary

Ms H complained that NatWest held her jointly liable for a £19,950 loan taken out by her abusive ex-partner in January 2022 without her knowledge or consent. NatWest's process at the time only required one party to sign the joint loan agreement. Ms H did not become aware of the loan until April 2024 when her ex-partner left and stopped making repayments. The ombudsman found that Ms H did not sign the loan agreement, her ex-partner likely intercepted the confirmation letter, he controlled the joint account and finances, and she did not benefit from the loan funds as he transferred most to his own account. The ombudsman upheld the complaint and ordered NatWest to remove the loan from Ms H's credit file and cease holding her liable.

The Ombudsman's reasoning

The ombudsman found that Ms H did not sign the loan agreement and it was plausible her ex-partner ticked the box on her behalf. Although a confirmation letter was sent, it was plausible the ex-partner intercepted it given he had sole access to the mailbox. Ms H's consistent testimony that her ex-partner controlled the joint account and finances was supported by account activity showing most transactions referenced him and his business. The April 2023 call showed Ms H believed the loan belonged to her husband, not her. Ms H did not benefit from the loan funds as the ex-partner transferred most of it to his own account, and credits from Ms H exceeded debits attributed to her. The pattern of fraud by the ex-partner on other accounts supported Ms H's account.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website