Not upheld: account closure without stated reason complaint against HSBC UK Bank Plc

Decision detail

Summary

Mr G complained that HSBC closed his account without providing a reason and requested reinstatement or a new account. HSBC closed the account following a review and provided 60 days' notice, complying with the account terms and conditions. The ombudsman found that HSBC acted fairly in closing the account and was not obliged to provide a specific reason for closure. The complaint was not upheld, and the ombudsman declined to require HSBC to reinstate the account or open a new one.

The Ombudsman's reasoning

Banks are entitled to end business relationships with customers provided it is done fairly and in line with account terms and conditions. HSBC provided 60 days' notice, which meets the standard requirement for reasonable notice. The ombudsman was satisfied that HSBC applied its closure terms fairly based on confidential evidence, the account terms, and HSBC's legal and regulatory obligations. Banks are not obliged to provide specific reasons for account closure or to lend money to customers who do not meet their lending criteria.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website