Partially upheld: account access restriction and service failure complaint against National Westminster Bank Plc

Decision detail

Summary

Mr M complained that NatWest restricted his credit card account access when it went overlimit, requiring him to call to make payments rather than using digital channels, and that this restriction was not promptly removed even after he brought the account within limit in January 2026. The ombudsman found that the initial restriction was justified by NatWest's policy and that Mr M had control over resolving the overlimit status, but upheld the complaint in part due to NatWest's acknowledged error in delaying the removal of the restriction by less than a week after the account was brought within limit. The ombudsman rejected Mr M's broader claims about unfair treatment and adverse credit reporting, as these accurately reflected his account management. NatWest was ordered to pay £150 compensation for the delay.

The Ombudsman's reasoning

The ombudsman found that while the initial restriction was justified by NatWest's policy for overlimit accounts and Mr M had control over resolving the overlimit status, NatWest did commit an error in delaying the removal of the restriction after the account was brought within limit on 1 January 2026. The delay of less than a week, while acknowledged by NatWest as an error, was considered reasonable to compensate at £150 given the timescale. The ombudsman rejected Mr M's broader complaints about the restriction itself and the adverse credit reporting, as these accurately reflected his account management and he had the ability to resolve the overlimit status.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website