Not upheld: poor handling of chargeback claim; lack of communication and updates; missed deadlines; unexplained re-keying of funds complaint against NATIONAL WESTMINSTER BANK PUBLIC LIMITED COMPANY (NatWest)

Decision detail

Summary

Mr E complained about NatWest's poor handling of a chargeback claim for a £147.95 purchase, citing lack of communication, missed deadlines, and unexplained re-keying of funds. Although Mr E eventually received a full refund (approximately one month after raising the claim), he sought additional compensation beyond the £100 already awarded by NatWest for communication failures. The ombudsman did not uphold the complaint, finding that since Mr E had been fully refunded and suffered no financial loss, and the £100 compensation was appropriate for the distress and inconvenience caused, no further remedy was warranted.

The Ombudsman's reasoning

The ombudsman determined that although NatWest's handling of the chargeback claim involved poor communication and delays, Mr E had been fully compensated by receiving a complete refund of the transaction amount. Since the purpose of the FOS is to put customers in the position they would have been in had the error not occurred, and Mr E's financial position had been restored, no further remedy was warranted. The £100 already awarded by NatWest was deemed sufficient compensation for the distress and inconvenience caused, particularly given the relatively short timeframe for resolution and the absence of financial loss.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website