Not upheld: charge release delay, alleged collusion on debt transfer, unsuitable refinancing advice, poor business manager transition complaint against NATIONAL WESTMINSTER BANK PUBLIC LIMITED COMPANY (NatWest)

Decision detail

Summary

C, a partnership, complained that NatWest allowed a former partner to transfer personal debt to the partnership via a 2015 commercial loan without Mrs B's knowledge, provided unsuitable refinancing advice in 2016, failed to maintain contact with a business manager, and delayed releasing a residential property charge for approximately four years after loan repayment in October 2021. The ombudsman found that Mrs B's signature on the April 2016 refinancing agreement indicated her awareness of the 2015 loan, that the replacement loans offered better interest rates than the original, and that while NatWest should have asked C about charge release in 2021, there was no evidence of significant delay after a clear request or quantifiable losses. The complaint was not upheld, with the £200 already paid by NatWest deemed reasonable compensation.

The Ombudsman's reasoning

The ombudsman found that Mrs B's signature on the April 2016 loan agreement (which refinanced the 2015 loan) indicated her awareness or acceptance of the 2015 loan, and that she should have taken steps to remedy any unfairness at that time if she had genuine concerns. Without supporting evidence, the ombudsman rejected claims that the 2016 agreements were forged. Regarding the interest rates, the replacement loans at 5.5% and 5.49% fixed rates were lower than the 2015 loan's 8.25% rate, showing no detriment. The ombudsman acknowledged NatWest's error in not asking whether C wanted the charge released in 2021, but found no evidence of significant delay after a clear request or quantifiable losses, as C only requested release in December 2024 with the charge released in January 2025.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website