Not upheld: account administration, forbearance arrangement handling, debt collection procedures, credit file reporting complaint against NATIONAL WESTMINSTER BANK PUBLIC LIMITED COMPANY (NatWest)

Decision detail

Summary

Miss H complained about NatWest's administration of her overdraft account, particularly its handling of a forbearance arrangement, communication attempts, transfer to a debt collection agency, and adverse credit file reporting. Miss H had contacted NatWest in October 2024 explaining personal and financial difficulties, leading to a forbearance arrangement that was later extended. When the arrangement ended in May 2025, NatWest attempted to contact Miss H through multiple methods and set a deadline of 14 July 2025 for repayment or agreement of a new arrangement. Miss H contacted NatWest on 14 July 2025 after the deadline had passed, and the account was subsequently transferred to a debt collection agency. Miss H later disclosed that she had been experiencing significant mental health difficulties including ADHD diagnosis and severe distress, which affected her ability to engage with NatWest. The ombudsman did not uphold the complaint, finding that NatWest acted fairly and reasonably based on the information it had available at the time, offered appropriate support, made reasonable communication attempts, and accurately reported the account status.

The Ombudsman's reasoning

The ombudsman assessed whether NatWest acted fairly based on the information it had available at the time, not on Miss H's subsequent disclosure of vulnerabilities. While acknowledging Miss H's mental health difficulties, the ombudsman found that: (1) NatWest offered reasonable support including forbearance and SST assistance; (2) NatWest made reasonable communication attempts using multiple methods (text, letter, telephone) and gave clear notice of consequences; (3) Miss H had a reasonable period (60 days from 14 May to 14 July 2025) to engage with NatWest; (4) Miss H did not contact NatWest before the deadline to arrange further support; (5) the credit file reporting accurately reflected the account history and was fair. The ombudsman noted that credit file reporting serves an important protective function for both lenders and borrowers.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website