Upheld: credit file reporting accuracy and arrears marking complaint against NATIONAL WESTMINSTER BANK PUBLIC LIMITED COMPANY
Financial Ombudsman decision DRN-6345606 of 2026-05-08T00:00:00+00:00. credit file reporting accuracy and arrears marking complaint against NATIONAL WESTMINSTER BANK PUBLIC LIMITED COMPANY. Outcome: Upheld.
Decision detail
| Reference | DRN-6345606 |
|---|---|
| Decision date | 2026-05-08T00:00:00+00:00 |
| Firm | NATIONAL WESTMINSTER BANK PUBLIC LIMITED COMPANY |
| Product | loan |
| Claim type | credit file reporting accuracy and arrears marking |
| Outcome | Upheld |
| Remedy | No additional remedy ordered. NatWest has already recorded the arrangement to pay on the credit file as required. Miss B and Mr J should contact NatWest directly regarding the previously agreed £250 compensation and to request credit file updates following full repayment of the loan (which can take up to 8 weeks). |
Summary
Miss B and Mr J complained that NatWest incorrectly reported their joint loan account as showing missed repayments when they were actually maintaining an arrangement to pay £200 per month (a reduced amount agreed following a previous FOS view). They claimed this reporting prevented them obtaining a mortgage. NatWest agreed to update the reporting to show an arrangement to pay from May 2024. The Ombudsman upheld the complaint as NatWest should have recorded the arrangement, but found no additional remedy was necessary as NatWest had already made the required correction and the evidence did not establish that the arrears reporting caused the mortgage rejection.
The Ombudsman's reasoning
The Ombudsman found it fair and reasonable for NatWest to record arrears where contractual repayments were not being met, even under an arrangement to pay. However, NatWest should have recorded that an arrangement to pay was in place, which it had already done by May 2024. The evidence from the mortgage broker was insufficient to prove Miss B and Mr J would have obtained a mortgage absent the arrears reporting, as mortgage decisions involve multiple factors and the evidence was from a broker, not a lender. Therefore, no compensation was warranted as NatWest had already corrected the reporting as required.
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