Not upheld: irresponsible lending and interest rate accuracy complaint against National Westminster Bank Public Limited Company (NatWest)
Financial Ombudsman decision DRN-6391154 of 2026-06-09T00:00:00+00:00. irresponsible lending and interest rate accuracy complaint against National Westminster Bank Public Limited Company (NatWest). Outcome: Not upheld.
Decision detail
| Reference | DRN-6391154 |
|---|---|
| Decision date | 2026-06-09T00:00:00+00:00 |
| Firm | National Westminster Bank Public Limited Company (NatWest) |
| Product | Personal loan |
| Claim type | irresponsible lending and interest rate accuracy |
| Outcome | Not upheld |
| Remedy | No remedy ordered. The ombudsman encouraged Miss A to contact NatWest's financial difficulties department if she continues to struggle financially and reminded NatWest of its obligations to treat customers in financial difficulties fairly. |
Summary
Miss A complained that NatWest irresponsibly lent her £50,000 for debt consolidation in April 2024 without properly assessing affordability, and questioned whether the correct interest rate was being charged. NatWest verified her income and reviewed her mortgage statement but did not provide clear evidence of how it calculated her other essential expenditure. The ombudsman found that proportionate checks would have shown the loan was affordable, as Miss A's bank statements revealed over £800 monthly disposable income after the loan repayment. Although Miss A subsequently entered a new tenancy requiring £1,700 monthly payments and experienced financial difficulties, NatWest was not reasonably aware of this undisclosed change. The complaint was not upheld, and the ombudsman confirmed the interest rate charged was correct.
The Ombudsman's reasoning
The ombudsman found that while NatWest's checks could have been more thorough regarding non-mortgage expenditure, proportionate checks would likely have shown the loan was sustainable. Miss A had over £800 monthly disposable income after accounting for the loan repayment based on her actual bank statements. The subsequent financial difficulties were caused by Miss A's undisclosed new tenancy agreement (£1,700 monthly) which NatWest could not reasonably have foreseen. The loan was used for debt consolidation as intended, and there were no signs of financial struggle in Miss A's repayment history or contact with NatWest.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| National Westminster Bank Public Limited Company (NatWest), all decisions | 94 | 5% |
| Personal loan, all decisions | 22,070 | 30% |
Source
Read the original decision on the Financial Ombudsman Service website