Not upheld: default recording and account administration; alleged failure to communicate arrears complaint against HSBC UK Bank Plc

Decision detail

Summary

Mr S opened a credit card account with HSBC in October 2024 but failed to make payments, believing a direct debit had been set up. HSBC sent multiple written communications and made telephone contact regarding arrears, and issued a default notice in May 2025 requiring payment by 4 June 2025. Mr S claimed he did not receive the correspondence and that HSBC should have removed the default from his credit file. The ombudsman found that HSBC made reasonable efforts to contact Mr S through multiple channels, that there was no evidence letters were sent to an incorrect address, and that Mr S had conversations with HSBC about the account and its consequences. The complaint was not upheld as HSBC acted fairly in recording the default after Mr S failed to remedy the breach within the specified timeframe.

The Ombudsman's reasoning

The ombudsman found that HSBC made reasonable efforts to contact Mr S through multiple channels (telephone, written correspondence to registered address, electronic alerts and SMS). The evidence showed that Mr S had conversations with HSBC about the account and was informed of the consequences of arrears. Although Mr S claimed he did not receive letters, there was no persuasive evidence that they were sent to an incorrect address. The ombudsman noted that Mr S used the credit card and accumulated a balance of over £22,000, creating an obligation to make payments. A default notice was properly issued before the default was registered, and Mr S did not remedy the breach within the specified timeframe. The ombudsman found that HSBC asked about financial difficulties and Mr S indicated he did not need further assistance.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website