Not upheld: account blocking without notice; lack of communication and explanation complaint against HSBC UK Bank Plc

Decision detail

Summary

Mr G complained that HSBC blocked his current account without notice or explanation on 8 September 2025, causing him embarrassment and financial disruption. The account was unblocked on 16 September 2025. Mr G sought to understand why his account was blocked and complained about HSBC's lack of communication and failure to provide timeframes. HSBC defended its actions as necessary to comply with legal and regulatory obligations regarding financial crime prevention. The ombudsman found that HSBC had a legitimate basis for the block, was not obliged to provide advance notice or explanation, and completed the review in a timely manner without undue delay. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman acknowledged Mr G's concerns but found that HSBC had legitimate legal and regulatory responsibilities to protect customers from financial harm and prevent financial crime. The basis for the review was legitimate and in line with HSBC's obligations. HSBC was entitled to restrict the account and was not obliged to provide advance notice or explanation. The 9-day block period was not unduly delayed as HSBC was proactive in completing required administrative processes to comply with regulatory obligations. Therefore, HSBC did not act unfairly.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website