Did NatWest mis-sell your packaged bank account?

NatWest sold a range of packaged current accounts under the Reward banner — Reward Silver, Reward Platinum, and Black — as well as earlier packaged products. These accounts carried monthly fees between £10 and £30 in exchange for bundled benefits including worldwide travel insurance, breakdown cover, and mobile phone insurance.

Under FCA rules, NatWest was required to ensure customers understood they were agreeing to a recurring monthly fee, that the bundled benefits were suitable for them, and that free alternatives existed. In practice, many NatWest customers were sold these accounts without proper disclosure.

Grounds for complaint against NatWest

  • You were not clearly told you were paying a monthly fee when the account was opened or upgraded
  • Your account was upgraded from a free Select account without your knowledge or explicit consent
  • You were not informed that NatWest's free Select account was available as an alternative
  • You were told you did not qualify for a free account when you were eligible
  • The bundled insurance was unsuitable — you were ineligible to claim due to age, health, or other eligibility restrictions
  • You attempted to cancel or downgrade and were discouraged or prevented from doing so

NatWest and RBS. NatWest and Royal Bank of Scotland are both part of the NatWest Group. Complaints about RBS packaged accounts follow the same regulatory framework and should be addressed to RBS's complaints team, but the grounds and process are identical to those for NatWest.

The FCA rules NatWest was required to follow

BCOBS 5.1.6R — NatWest was required to communicate with you in a way that was clear, fair and not misleading. This includes being transparent about the monthly fee, the nature and limitations of the benefits, and the availability of free current accounts.

ICOBS 2.5.1R — Where travel insurance, breakdown cover, or mobile phone insurance was bundled into the account, NatWest was required to ensure these products were appropriate for your demands and needs. An elderly customer sold travel insurance with restrictive age limits, or a customer sold breakdown cover on a leased vehicle, may have a specific additional ground of complaint under this rule.

Consumer Duty (PS22/9) — NatWest is now required to deliver good outcomes for retail customers and avoid foreseeable harm. This obligation applies to ongoing relationships, not just the original sale.

What redress can you claim?

  • Full refund of all monthly fees paid since the account was opened
  • Statutory interest at 8% per annum on each monthly fee from the date it was deducted
  • Compensation for distress and inconvenience as a separate, standalone head of redress

How to make a formal complaint to NatWest

Send your complaint letter by post to:
NatWest
PO Box 594
Chatham
ME4 9DP

Send by recorded delivery and keep your proof of postage — this is your evidence that NatWest received the complaint and starts the 8-week response clock.

Subject line:
Formal Complaint — Mis-sold Packaged Bank Account

Your complaint letter should identify the account type and period held, state the specific grounds for complaint, cite BCOBS 5.1.6R, claim all three heads of redress, and state your intention to refer to the FOS if the complaint is not resolved within 8 weeks.

Send by email and keep a copy. An emailed complaint creates a clear timestamp and a paper trail. Note the date sent and retain a copy of every response from NatWest. You will need this if you escalate to the Financial Ombudsman.

What happens after you complain?

NatWest must issue a final response within 8 weeks. If they do not respond in time, or if their response is unsatisfactory, you may refer immediately to the Financial Ombudsman Service.

If NatWest rejects your complaint

Refer to the Financial Ombudsman Service within 6 months of NatWest's final response. The FOS is free to use and independent of NatWest.

financial-ombudsman.org.uk
0800 023 4567

Before you accept any offer from NatWest

Check the offer includes all three heads of redress. If the distress and inconvenience payment is absent, or if interest has not been calculated at 8% per annum on each individual fee, push back in writing before accepting. You are not required to accept a partial offer.