Not upheld: Service failures generally complaint against HSBC UK Bank Plc

Decision detail

Summary

Mr P complained that HSBC treated him unfairly when managing his closed credit card account, particularly regarding the decision to pass it to a collections team and a December 2025 phone call where an agent asked him to move for better reception despite knowing he was physically disabled. HSBC had upheld the complaint and offered £250 compensation, but Mr P sought further redress through the Financial Ombudsman Service. The ombudsman found that HSBC's decision to involve the collections team was reasonable given their inability to establish contact with Mr P after he failed to provide promised updates, and that their response to the phone call incident—including investigation, apology, and compensation—was fair. The complaint was not upheld as the ombudsman determined HSBC had already provided a fair resolution.

The Ombudsman's reasoning

The ombudsman found that HSBC's decision to pass the account to a collections team was reasonable because HSBC did not have up-to-date information about Mr P's circumstances after he failed to maintain contact despite their reasonable efforts to reach him. While the ombudsman acknowledged that the December 2025 phone call involved unfair treatment when the agent asked Mr P to move despite knowing of his disability, HSBC's response—including prompt investigation, feedback to the agent, direct and written apologies, and £250 compensation—was considered fair and proportionate under the ombudsman's compensation guidelines.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website