Upheld: account closure and failure to provide adequate support to vulnerable customer complaint against National Westminster Bank Public Limited Company (NatWest)

Decision detail

Summary

Mr S complained that NatWest unfairly closed his current account in July 2025 after being informed of his Debt Relief Order and subsequently refused to reopen it or adequately support him in applying for a new account. Although NatWest was entitled to close the account and require a new application, the ombudsman found NatWest should have provided better guidance and support given Mr S' vulnerable circumstances and NatWest's awareness of his situation. The ombudsman upheld the complaint and awarded £100 compensation for the lack of support, while noting that NatWest retains the discretion to accept or reject any future application.

The Ombudsman's reasoning

The ombudsman found NatWest was entitled to close the account in line with its procedures upon notification of the DRO and was not obligated to reopen it. However, NatWest should have provided better support and clearer guidance to Mr S when he attempted to apply for a new account, particularly given his vulnerable circumstances and NatWest's awareness of his situation. The ombudsman could not direct NatWest to open an account as this is a discretionary business decision, but compensation was appropriate for the lack of support provided.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website