Not upheld: Account administration errors complaint against HSBC UK Bank Plc

Decision detail

Summary

The estate of Mr B complained that HSBC failed to release funds to the executors following Mr B's death in February 2021, which HSBC was not notified of until June 2021. The executor, Miss R, requested release of funds that came into the account after Mr B's death, but HSBC refused because the account was in debit. HSBC had previously released some funds and eventually wrote off the remaining debit balance of £9,611.23 when closing the account in November 2022. The ombudsman found HSBC's position reasonable because it was unaware of the death when the account continued to operate with both incoming and outgoing payments, and the balance written off was higher than at the time of death, resulting in no loss to the estate.

The Ombudsman's reasoning

The ombudsman reasoned that it would be unfair to hold HSBC liable for outgoing payments while releasing incoming payments, as this would increase HSBC's debt exposure. Since HSBC was unaware of the death when the account continued to operate, both credits and debits were legitimate. Once notified, HSBC properly closed the account in line with terms and conditions and wrote off a balance higher than existed at death, meaning the estate suffered no loss. The executor's choice to use the account as a going concern was her decision, not an error by HSBC.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website