Not upheld: irresponsible lending complaint against NATIONAL WESTMINSTER BANK PUBLIC LIMITED COMPANY trading as NatWest Boxed

Decision detail

Summary

Mr O complained that NatWest Boxed irresponsibly provided him with a £5,000 loan in November 2025. The ombudsman found that while the firm's pre-lending checks could have been more proportionate (specifically through income verification), any proportionate checks would not have revealed the lending to be unfair. Mr O's declared annual income of £45,000 was supported by bank statements showing average monthly income of £2,670, and after deducting housing costs (£935), living costs (£772), and credit repayments, he had approximately £694 remaining for unforeseen expenses. The credit check raised no serious concerns, and Mr O's account statements did not evidence gambling or financial distress. The ombudsman concluded the loan was affordable and not provided irresponsibly, and therefore did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that while NatWest Boxed's checks were not perfectly proportionate (income verification would have been proportionate), any proportionate checks would not have revealed the lending to be unfair. Mr O's declared income of £45,000 was supported by bank statements showing average monthly income of £2,670. After deducting housing costs (£935), living costs (£772), and credit repayments, approximately £694 remained for unforeseen expenses, indicating the loan was affordable. The credit check raised no serious concerns, and Mr O's account statements did not evidence gambling or financial distress. Based on the information available to the firm, there was nothing to suggest Mr O would be unable to sustainably repay the loan.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website