Not upheld: account blocking, lack of communication, delay in account review completion complaint against HSBC UK Bank Plc
Financial Ombudsman decision DRN-5930494 of 2026-04-27T00:00:00+00:00. account blocking, lack of communication, delay in account review completion complaint against HSBC UK Bank Plc. Outcome: Not upheld.
Decision detail
| Reference | DRN-5930494 |
|---|---|
| Decision date | 2026-04-27T00:00:00+00:00 |
| Firm | HSBC UK Bank Plc |
| Product | Current account |
| Claim type | account blocking, lack of communication, delay in account review completion |
| Outcome | Not upheld |
| Remedy | None. The complaint is not upheld. HSBC is not required to provide additional compensation beyond the £50 already offered for complaint handling delays. |
Summary
Mr S complained that HSBC blocked his two accounts without proper explanation and took too long to complete its review, causing him financial hardship and stress, particularly as he had undergone major surgery. HSBC blocked the accounts in October 2024 to comply with legal and regulatory obligations and closed them in August 2025 after review. While the ombudsman acknowledged HSBC's service fell short in communication and complaint handling, it found the account block was legitimate and, after considering confidential information about the review, determined that compensation would not be fair or appropriate. The complaint was not upheld.
The Ombudsman's reasoning
The ombudsman found HSBC's decision to review and block the accounts was legitimate and in line with legal and regulatory obligations to protect customers from financial harm and prevent financial crime. While HSBC's service fell short in communication and complaint handling (missing emails, delayed responses), the ombudsman determined that compensation would not be fair or appropriate after considering confidential information about the review that justified HSBC's actions. The ombudsman exercised discretion to accept confidential evidence under DISP rules, finding it material to the fairness assessment.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| HSBC UK Bank Plc, all decisions | 7,532 | 23% |
| Current account, all decisions | 45,590 | 19% |
Source
Read the original decision on the Financial Ombudsman Service website