Not upheld: standing order failure and automatic charges complaint against NATIONAL WESTMINSTER BANK PUBLIC LIMITED COMPANY (NatWest)

Decision detail

Summary

Mr Y complained that NatWest debited £150 from his current account in respect of a failed standing order payment and charged a £1.55 fee, with the money appearing to be in limbo. NatWest explained that the current account never actually went overdrawn; the standing order failed due to insufficient funds caused by a large payment Mr Y had made on the same date, and the £150 was returned overnight. The ombudsman found NatWest acted appropriately as the letter and fee were generated by an automatic procedure applicable to any payment returned for insufficient funds, and the refund of the fee was an appropriate response. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that NatWest acted appropriately as banks expect customers to manage their finances. The letter and fee were generated by an automatic procedure applicable to any payment returned for insufficient funds. Although NatWest did not explain why the £150 did not initially appear in either account, the next day Mr Y would have seen from his statement that the money had not left his current account and therefore it did not go overdrawn. The refund of the fee was deemed an appropriate response.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website