Not upheld: Card / payment disputes complaint against National Westminster Bank Public Limited Company (NatWest)

Decision detail

Summary

Ms M complained that NatWest failed to recover £7,850 she paid by bank transfer to a roofing company that allegedly provided defective work and failed to provide a promised warranty before ceasing trading. NatWest declined to pursue recovery, explaining that chargeback rights only apply to card transactions and that the dispute was between Ms M and the service provider. The ombudsman found NatWest acted fairly and reasonably, as the payments were authorised, chargeback was unavailable for bank transfers, and the contractual dispute fell outside NatWest's responsibility. The ombudsman upheld NatWest's £200 compensation for complaint handling delays and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that Ms M authorised the payments and intended them to reach company D. Chargeback rights do not apply to bank transfers, only card transactions. The dispute concerned the quality of work and contractual obligations between Ms M and D, not NatWest's responsibility. The CRM Code, designed for authorised push payment scams, did not apply as Ms M intended to pay the company and work was performed. NatWest had no available recovery mechanism once the authorised transfers were completed. The £200 compensation for complaint handling delays was appropriate.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website