Upheld: service failure - fraud block handling and customer contact delays complaint against National Westminster Bank Public Limited Company (NatWest)

Decision detail

Summary

Miss B's debit card was blocked for suspected fraud while on holiday in the USA. Although NatWest sent text messages and attempted contact, Miss B did not receive them due to network issues and was unable to make outbound calls. NatWest's webchat responses were delayed and a promised callback within 24 hours was not delivered until 72 hours later, leaving Miss B without access to funds for several days. The ombudsman upheld the complaint, finding NatWest's service fell short of acceptable standards, and required the firm to pay £400 total compensation (£200 initially paid plus £200 additional) for the distress and inconvenience caused.

The Ombudsman's reasoning

The ombudsman determined that while NatWest's fraud block decision itself was not unreasonable given security protocols, the firm's service in handling Miss B's attempts to resolve the issue fell short of acceptable standards. Although NatWest did send text messages and attempt a callback within 24 hours initially, the delayed webchat responses and failure to deliver the second callback within the promised 24-hour timeframe constituted service failures. The ombudsman acknowledged Miss B's difficulties with mobile connectivity and the impact on her holiday, but noted she did not attempt alternative contact methods such as payphones or hotel calls. The £400 total compensation was deemed fair and reasonable for the distress and inconvenience caused.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website