Not upheld: account blocking, access to funds, delay in review completion, lack of explanation complaint against HSBC UK Bank Plc

Decision detail

Summary

P, a limited company exporting cars and motorhomes, had its business account with HSBC blocked in September 2025 after receiving a £5,000 payment from an individual. HSBC requested explanation and Mr O provided invoices, but HSBC found the explanation insufficient and continued its review for approximately six months until releasing the funds on 25 March 2026. Mr O complained that the block caused catastrophic business losses (£120,000 in terminated projects), unpaid statutory obligations, and personal hardship including inability to pay mortgage and nursery fees. The ombudsman found HSBC acted fairly in blocking the account to comply with legal and regulatory obligations, was not unreasonably delayed, and declined to award compensation, finding the invoices did not adequately demonstrate P's entitlement to the funds.

The Ombudsman's reasoning

The ombudsman found that HSBC had legitimate legal and regulatory obligations to review the account based on confidential information that justified the review. While the ombudsman acknowledged the significant impact on Mr O and P, they found that HSBC acted fairly in blocking the account and that the invoices provided by Mr O did not adequately demonstrate P's entitlement to the £5,000 (the sender was an individual C, not the business named on invoices; invoices did not reference caravans; no evidence of actual shipment to Cyprus). The ombudsman concluded that HSBC was not unreasonably delayed in its review and was entitled to conduct administrative processes to comply with regulatory obligations.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website