Not upheld: payment delay and account restriction; poor communication during fraud investigation complaint against National Westminster Bank Plc

Decision detail

Summary

Miss I complained that NatWest wrongly delayed a £5,000 payment to her father and suspended her account without adequate explanation, causing distress when the funds were urgently needed for overseas medical treatment. The bank's fraud prevention systems triggered restrictions on the payment and account, and while the bank's online communications were poor and unhelpful, the issues were resolved when Miss I returned to the UK and contacted the fraud team directly. The ombudsman upheld the bank's right to implement such security measures but found the communication inadequate, yet concluded that the £75 compensation already paid was reasonable and did not warrant further award.

The Ombudsman's reasoning

The ombudsman accepted that banks are generally within their rights to stop payments and restrict accounts where unusual or fraudulent activity appears to have occurred, and that automated fraud prevention systems triggering such actions is reasonable. However, the ombudsman found that while the bank's investigation was justified, its execution was poor, with ineffective communication that failed to address Miss I's specific concerns until she returned to the UK. The ombudsman concluded that the £75 compensation was reasonable, albeit at the lower end of the range, and did not warrant further award.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website