Not upheld: irresponsible lending / scam-related loan / loan write-off request complaint against National Westminster Bank Public Limited Company

Decision detail

Summary

Miss B complained that NatWest should write off an £8,100 personal loan she took out in July 2024, arguing she was coerced by scammers into applying for it and did not benefit from the funds. Although Miss B was manipulated, the ombudsman found she applied for the loan herself using her own details and transferred £8,000 to a currency exchange platform within 24 hours, demonstrating she had control over and benefited from the funds. NatWest had already repaid £4,000 of Miss B's scam-related losses. The ombudsman declined to uphold the complaint, finding it would be inappropriate to cancel the debt and risk Miss B benefitting twice from the same issue.

The Ombudsman's reasoning

The ombudsman found that although Miss B was manipulated by scammers, the evidence clearly showed she applied for the loan herself using her own personal details and was aware of the application. Critically, Miss B made the decision to transfer £8,000 of the loan funds herself within 24 hours, demonstrating she had access to and control over the funds. Therefore, she benefited from at least part of the loan (£100 was not spent on the scam). The ombudsman also noted that NatWest had already provided substantial compensation (£4,000 relating to the scam loss), and cancelling the debt would risk Miss B benefitting twice from the same issue.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website