Partially upheld: Card / payment disputes complaint against NATIONAL WESTMINSTER BANK PUBLIC LIMITED COMPANY

Decision detail

Summary

Mr D disputed four credit card transactions totalling over £300 from merchant B, believing they were unauthorised or incorrectly charged. After difficulty resolving the matter with both NatWest and the merchant, Mr D refused to pay the disputed charges and his account fell into arrears. NatWest reported the non-payment to credit agencies, negatively impacting Mr D's credit rating. Although Mr D later confirmed the transactions were legitimate, he complained that NatWest's handling caused the credit damage. The ombudsman partially upheld the complaint, awarding additional redress for service failures but rejecting the claim regarding credit rating impact, finding NatWest had accurately reported the account performance as legally required and Mr D had been warned of the consequences of non-payment.

The Ombudsman's reasoning

NatWest is obligated to accurately report credit account performance to credit reference agencies. The ombudsman found no evidence supporting Mr D's claim that NatWest advised him that submitting a claim would prevent interest or charges. NatWest consistently advised Mr D that non-payment would impact his credit rating, and Mr D was aware of this risk but maintained his position not to pay. NatWest followed its collection process and communicated regularly with Mr D. The credit rating downgrade resulted from Mr D's decision not to make payments, not from NatWest's handling. NatWest accurately reported the account performance to credit agencies as required by law.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website