Not upheld: administrative error - incorrect personal data recording and failure to correct in timely manner complaint against HSBC UK Bank Plc

Decision detail

Summary

Miss P opened a current account with HSBC in March 2019 with her correct date of birth, but the bank's records were subsequently changed to show an incorrect date one day earlier. After Miss P failed security checks in January 2023, HSBC identified the error in February 2023 but did not correct it until September 2025, causing Miss P multiple account blockages requiring branch visits and time off work. HSBC paid £500 compensation which Miss P rejected as insufficient, seeking £5,000 instead. The FOS ombudsman upheld HSBC's £500 payment as fair and reasonable compensation in line with published guidelines, rejecting the complaint and declining to award additional compensation.

The Ombudsman's reasoning

The ombudsman accepted that HSBC made an error in record keeping and was responsible for it. While acknowledging the inconvenience, distress, and delay in correction, the ombudsman determined that £500 compensation was in line with FOS published guidelines and comparable cases. The ombudsman rejected arguments about potential security risks (as no actual loss occurred), the length of time the error persisted (already factored into the remedy), and characterizations of pressure regarding the settlement offer. The ombudsman noted that how the error occurred did not affect the fairness of the remedy.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website