Not upheld: data retention, account opening obstruction, complaint handling delays complaint against National Westminster Bank Plc
Financial Ombudsman decision DRN-6335506 of 2026-05-18T00:00:00+00:00. data retention, account opening obstruction, complaint handling delays complaint against National Westminster Bank Plc. Outcome: Not upheld.
Decision detail
| Reference | DRN-6335506 |
|---|---|
| Decision date | 2026-05-18T00:00:00+00:00 |
| Firm | National Westminster Bank Plc |
| Product | current account, savings account |
| Claim type | data retention, account opening obstruction, complaint handling delays |
| Outcome | Not upheld |
| Remedy | NatWest to pay £175 switch incentive upon joint account switch completion, backdate interest on the 5.5% regular saver account, and pay £300 compensation for distress and inconvenience (if not already paid). |
Summary
Mrs T complained that NatWest improperly retained her personal data from an account closed in 2007, which prevented her and her husband from opening a joint account and accessing a switch incentive and 5.5% savings account in October 2025. NatWest acknowledged the orphan customer identification number should not have been retained and offered £175 switch incentive, backdated interest on the savings account, and £300 compensation. The ombudsman found this offer fair and reasonable as it restored Mr and Mrs T to their intended financial position, and rejected Mrs T's request for £800 total compensation. The complaint was not upheld.
The Ombudsman's reasoning
The ombudsman agreed that data retention was the central issue causing the problems, but found that once NatWest resolved the underlying technical issue by deleting the old profile, the firm's offer adequately compensated for the losses. The £175 switch incentive and backdated interest would have put Mr and Mrs T back in the position they would have been in had the mistakes not occurred. The £300 compensation was reasonable given the stress and impact on Mrs T, particularly as she relied on her husband for support. While the ombudsman acknowledged NatWest should have done better, the firm's offer was fair and reasonable, and Mr and Mrs T's loss of trust and decision not to proceed with NatWest was their choice rather than evidence of an unfair offer.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| National Westminster Bank Plc, all decisions | 11,490 | 19% |
Source
Read the original decision on the Financial Ombudsman Service website