Not upheld: service failure, complaint handling deficiency, agent error complaint against HSBC UK Bank Plc

Decision detail

Summary

Ms C complained about HSBC's service when attempting to apply for a balance transfer via the mobile app in June 2025. The app prevented her from progressing, and when agent Y manually completed the application, he entered an incorrect account number (15 digits instead of 16), causing the balance transfer to fail and be reversed. HSBC failed to proactively notify Ms C of the reversal and provided poor complaint handling over several months, with agents unable or unwilling to investigate the issue. Although HSBC eventually identified the agent error and offered compensation of £375, Ms C sought additional compensation from the FOS. The ombudsman found HSBC's service was deficient but upheld the £375 compensation as fair and reasonable, declining to award additional amounts.

The Ombudsman's reasoning

The ombudsman found that while HSBC failed to provide a reasonable standard of service in multiple respects—including inadequate investigation of the app issue, failure to proactively notify Ms C of the reversal, poor complaint handling with issues being dismissed without explanation, and agent errors—the compensation of £375 already paid was fair and reasonable when considering the overall impact. The ombudsman rejected Ms C's approach of calculating compensation as £50 per interaction, explaining that FOS assesses compensation based on overall impact rather than per-interaction basis, and that not every interaction involved an error or poor service.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website