Not upheld: refusal to pay switching incentive / promotional offer dispute complaint against HSBC UK Bank Plc (trading as first direct)

Decision detail

Summary

Mr P complained that first direct should pay him a £175 switching incentive despite his failure to complete five required debit card transactions within 45 days, citing health conditions that prevented him from making the fifth transaction. He had completed only four transactions but made four cash withdrawals during the same period. First direct declined to pay the incentive, noting that Mr P did not meet the explicit terms and conditions, and additionally that he was ineligible as he was switching from HSBC to first direct (both part of the HSBC Group). The ombudsman found the complaint not upheld, determining that while Mr P's health conditions were sympathetic, the evidence demonstrated he was capable of using his card multiple times during the qualifying period, and that waiving the clear contractual criteria would be unfair to other customers and inconsistent with treating customers fairly.

The Ombudsman's reasoning

Although Mr P had health conditions that limited his ability to make transactions, the evidence showed he was capable of using his card on multiple dates within the qualifying period (four debit transactions and four cash withdrawals). The ombudsman found that Mr P was not incapacitated to the extent that first direct should waive the clear contractual criteria. Waiving the criteria would not align with treating customers fairly, as it would create inconsistency in how the promotion is applied. The ombudsman also considered the discrimination claim but found that first direct's decision was solely driven by the objective terms and conditions of the incentive, not by Mr P's vulnerabilities or disability.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website