Not upheld: Section 75 claim handling and time limits complaint against HSBC UK Bank Plc trading as HSBC

Decision detail

Summary

Mr E complained that HSBC unfairly declined his Section 75 claim regarding a payment made to company X in 2011 to help exit a timeshare contract. HSBC rejected the claim as out of time. The ombudsman found the claim was brought in late 2024, well beyond the applicable time limits for both chargeback (120-540 days) and Section 75 claims. Additionally, the ombudsman found that even if timely, the claim would have failed on its merits because the vague contract with X did not establish a breach, and there was no misrepresentation. The fact that Mr E received the desired outcome (timeshare contract termination in 2017) and did not complain until 2024 suggested X had performed adequately. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that while the technical question of whether the Section 75 claim was time-barred under the six-year rule was debatable, the claim would have failed on its merits regardless. The chargeback window had clearly closed (120 days from transaction or 540 days from expected service date, with service expected by June 2019 at latest). On the substantive merits, there was no misrepresentation by X regarding regulation, and the vague contract made it impossible to establish a breach. The fact that Mr E received the outcome he sought (timeshare contract termination in 2017) and made no complaints until 2024 suggested X had performed adequately.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website