Not upheld: cheque processing and account name mismatch complaint against HSBC UK Bank Plc trading as first direct

Decision detail

Summary

Ms P complained that First Direct refused to cash a cheque issued in her maiden name because it did not match her registered account name (her married double-barrelled surname, which includes her maiden name). First Direct declined the cheque as it had no previously verified information on file regarding Ms P's maiden name, despite her offering to provide her passport as proof of identity. The ombudsman found First Direct was not unreasonable in this decision, as the issue concerned whether the cheque was intended for Ms P rather than her identity. Although First Direct subsequently cashed the cheque on a discretionary basis, the ombudsman determined the firm had acted fairly and no remedy was required.

The Ombudsman's reasoning

The ombudsman found that First Direct was not unreasonable in declining the cheque because the name on the cheque differed from the registered account name, and First Direct had no previously verified information on file regarding Ms P's maiden name. While First Direct's policy does cover situations where cheques are issued in maiden names, it requires previously verified information to be on file. The issue was not about Ms P's identity (which she offered to prove with her passport) but about whether the cheque was intended for her. The ombudsman noted that had the firm followed proper procedure, it would have accepted the cheque if Ms P provided a marriage certificate, which would have required additional visits to a branch.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website