Partially upheld: overdraft default and service failures complaint against National Westminster Bank Public Limited Company

Decision detail

Summary

Mr P complained that NatWest failed to provide support when he requested help with his overdraft in March 2025, specifically by not sending an income and expenditure form despite multiple requests, and that this failure led to his account being unfairly defaulted in December 2025. NatWest acknowledged service failings and paid £100 compensation, later offering £250. The ombudsman found that while NatWest's service was deficient at times, the bank was justified in defaulting the account as Mr P was in sustained arrears for seven months without payment and had been given reasonable opportunity to contact the collections team. The ombudsman upheld the complaint only to the extent of confirming the £250 compensation payment, but rejected the request to remove the default from Mr P's credit file.

The Ombudsman's reasoning

The ombudsman found that NatWest complied with ICO guidance by defaulting the account after Mr P was in sustained arrears for seven months without payment. Although NatWest's service fell short at times, the ombudsman was not persuaded that providing the i&e form would have prevented default, as NatWest made clear attempts to contact Mr P and provided direct contact details for the collections team. Mr P did not successfully contact the relevant team via the provided details until 8 December, one day before the deadline, when he was unable to reach them. The ombudsman found NatWest gave reasonable opportunity to discuss the account and took reasonable steps to reach Mr P.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website