Partially upheld: debt handling, credit file reporting, complaints process failures complaint against National Westminster Bank Public Limited Company
Financial Ombudsman decision DRN-6339222 of 2026-05-06T00:00:00+00:00. debt handling, credit file reporting, complaints process failures complaint against National Westminster Bank Public Limited Company. Outcome: Partially upheld.
Decision detail
| Reference | DRN-6339222 |
|---|---|
| Decision date | 2026-05-06T00:00:00+00:00 |
| Firm | National Westminster Bank Public Limited Company |
| Product | current account |
| Claim type | debt handling, credit file reporting, complaints process failures |
| Outcome | Partially upheld |
| Remedy | NatWest must pay Mrs H an additional £180 in compensation (total £600 for distress and inconvenience). NatWest must arrange for Mrs H's credit reports to be updated via all relevant credit reference agencies to show the default date as March 2025 and the settled (satisfied) date as May 2025. NatWest is not required to remove the missed payment markers or default markers from the credit file. |
Summary
Mrs H complained about NatWest's handling of an outstanding overdraft balance of £460 after her current account was closed via a switch service in September 2024. She claimed to have set up a repayment arrangement and made two £20 payments, but NatWest maintained no formal arrangement existed because Mrs H had not completed the required income and expenditure assessment. Mrs H refused to set up a formal arrangement, demanding instead that NatWest remove negative credit file information. The ombudsman found NatWest's communications were sometimes conflicting due to poor coordination between collections and complaints teams, but the bank consistently communicated that no arrangement was in place. The ombudsman partially upheld the complaint, ordering additional compensation of £180 (total £600) and correction of credit file default/settled dates, but refusing to require removal of missed payment or default markers as these were accurately recorded.
The Ombudsman's reasoning
The ombudsman found that whilst NatWest's communications were sometimes conflicting between its collections and complaints teams, the bank consistently and clearly communicated to Mrs H that no formal arrangement was in place and that she needed to set one up. The two £20 payments in 2024 were not part of a formal arrangement as Mrs H had not completed the income and expenditure assessment process with NatWest. Mrs H's main reason for refusing to set up an arrangement was her demand that NatWest remove negative credit information, which the bank was entitled to record accurately. The ombudsman found NatWest was not obligated to remove missed payment or default markers as these accurately reflected the unpaid debt. However, the ombudsman found NatWest's lack of coordination between teams caused unnecessary distress and that credit file dates were incorrectly recorded by one agency.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| National Westminster Bank Public Limited Company, all decisions | 1,179 | 14% |
Source
Read the original decision on the Financial Ombudsman Service website