Partially upheld: Account administration errors complaint against NATIONAL WESTMINSTER BANK PUBLIC LIMITED COMPANY
Financial Ombudsman decision DRN-6440820 of 2026-06-22T00:00:00+00:00. Account administration errors complaint against NATIONAL WESTMINSTER BANK PUBLIC LIMITED COMPANY. Outcome: Partially upheld.
Decision detail
| Reference | DRN-6440820 |
|---|---|
| Decision date | 2026-06-22T00:00:00+00:00 |
| Firm | NATIONAL WESTMINSTER BANK PUBLIC LIMITED COMPANY |
| Product | Current account |
| Claim type | Account administration errors |
| Outcome | Partially upheld |
| Remedy | NatWest to pay simple interest on £110 at time-weighted average Bank of England base rate plus one percentage point, calculated from date of disputed debit to date of reimbursement. (£110 refund and £80 compensation already paid.) |
Summary
Mr and Mrs O complained that NatWest debited their account for a £110 cash withdrawal that never dispensed. NatWest initially refused reimbursement based on cash machine balance evidence, but this evidence was later found to relate to the wrong machine. Following FOS involvement, NatWest reimbursed the £110 and paid £80 compensation for claim handling issues. The complainants sought further compensation for the prolonged impact of the error. The ombudsman upheld the reimbursement and existing £80 compensation as fair, ordering interest on the £110 but declining additional compensation as the impact was limited to frustration and stress without significant life disruption.
The Ombudsman's reasoning
The ombudsman determined that since NatWest could not demonstrate the cash withdrawal was correctly executed, reimbursement was appropriate. The £80 compensation previously paid was considered fair for the overall errors including claim handling issues, and interest on the reimbursed amount appropriately compensates for the time without funds. The ombudsman noted that while the matter caused frustration and stress, no significant impact on day-to-day life was described, and the FOS is not a regulator designed to penalise firms but to assess fair compensation for actual impact.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| NATIONAL WESTMINSTER BANK PUBLIC LIMITED COMPANY, all decisions | 1,194 | 14% |
| Account administration errors, all decisions | 26,544 | 25% |
| Current account, all decisions | 52,014 | 19% |
Source
Read the original decision on the Financial Ombudsman Service website