Not upheld: irresponsible lending; failure to offer appropriate forbearance; debit card malfunction complaint against Nationwide Building Society

Decision detail

Summary

Mr Y complained that Nationwide Building Society treated him unfairly after he lost his job in October 2023 and experienced financial difficulties, claiming he informed the firm but received inadequate forbearance and was charged overdraft fees that worsened his situation. He also complained about debit card chip problems that forced him to purchase a new phone while unemployed. Nationwide refunded six months of overdraft fees as a gesture of goodwill, investigated the card issue and issued a replacement, but declined further refunds. The ombudsman did not uphold the complaint, finding Nationwide had taken reasonable steps including writing letters encouraging contact with collections and signposting to debt advice charities, and that the firm was not responsible for Mr Y's decision to purchase a new phone.

The Ombudsman's reasoning

The ombudsman found that while Nationwide could arguably have identified Mr Y's financial difficulties slightly earlier than January 2025, the firm took reasonable steps to offer forbearance including refunding six months of overdraft fees, writing letters encouraging contact with collections team, and signposting to free debt advice charities. The ombudsman was not persuaded that Mr Y had informed Nationwide of his unemployment earlier than January 2025 without further evidence. Regarding the debit card issue, Nationwide appropriately investigated and issued a replacement card, and was not responsible for Mr Y's decision to purchase a new phone. Complaint handling delays were within the eight-week regulatory deadline.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website