Upheld: failure to intervene on gambling spending, inadequate gambling block functionality, poor complaint handling complaint against NATIONAL WESTMINSTER BANK PUBLIC LIMITED COMPANY

Decision detail

Summary

Mr F complained that NatWest failed to intervene when he spent considerable amounts on gambling between 2023 and 2025, and that the bank allowed him to continue gambling after he applied a gambling block. NatWest explained that its gambling block only applies to debit card transactions, not bank transfers or online payments. The ombudsman found that NatWest should have been alerted to Mr F's gambling addiction when issuing a loan in March 2024, as his statements showed over £10,000 in gambling spend in the previous three months. However, the ombudsman was not persuaded that earlier intervention would have materially changed the outcome, as Mr F continued gambling despite the block and had other accounts. The complaint handling was also found to be unreasonable, as follow-up letters merely repeated the original response. The ombudsman upheld the complaint and ordered £500 compensation for distress and inconvenience.

The Ombudsman's reasoning

While banks must have systems to identify customers with spending problems, accounts are not manually reviewed. NatWest would need to be alerted through unusual activity, financial difficulties, or customer disclosure. Although the account appeared well-managed (in credit, no missed payments), the March 2024 loan issuance should have triggered a review of statements showing over £10,000 in gambling spend in three months. However, the ombudsman was not persuaded that earlier intervention would have materially changed the outcome, as Mr F continued gambling despite the block not working and had alternative accounts. The complaint handling was unreasonable as follow-up letters merely repeated the original response without addressing Mr F's subsequent queries. Compensation of £500 is appropriate for distress and inconvenience.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website