Not upheld: fraud database marker / account closure complaint against HSBC UK Bank Plc

Decision detail

Summary

Mr I complained that HSBC unfairly added his details to a fraud database after he received a payment that was reported as fraudulent by the sender's bank. Mr I provided multiple inconsistent explanations for the payment (business repairs, visa fee, plane tickets, car payment) but supplied no supporting evidence such as business agreements, invoices, or proof of payment. The ombudsman found that Mr I failed to demonstrate he was entitled to the money and therefore should have known the payment was not legitimate, meaning HSBC met the required standard of proof to fairly add him to the fraud database and close his account. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the test that for HSBC to fairly add a fraud database marker, it must show the money was fraudulent and that Mr I knew or should have known it was fraudulent. The ombudsman found that Mr I provided multiple inconsistent explanations for the payment with no supporting evidence (no business agreements, invoices, or proof of payment for plane tickets). The ombudsman concluded that Mr I was not entitled to the money and therefore should have known the payment was not legitimate, meeting HSBC's burden of proof.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website