Not upheld: scam and fraud - refund claim complaint against HSBC UK Bank Plc

Decision detail

Summary

Mr K complained that HSBC should refund £11,600 he paid to an online auction website after winning a property bid, claiming he was the victim of a scam when the purchase was not completed. HSBC investigated and declined to refund, finding the payments reached the intended account for the agreed purpose. The ombudsman upheld HSBC's decision, finding that despite multiple requests for evidence, Mr K failed to provide sufficient documentation demonstrating the auction website misled him or intended to operate a scam. The correspondence actually suggested the auction website was willing to complete the property purchase as intended, and there was no evidence of fraudulent intent.

The Ombudsman's reasoning

The ombudsman determined that before considering whether a bank protected its customers, it must first be satisfied a customer was the victim of a scam. Despite multiple requests for evidence, Mr K failed to provide sufficient documentation showing the auction website misled him, refused to provide required documentation, or intended to operate a scam. The correspondence actually suggested the auction website was willing to complete the property purchase as intended. Without evidence of scam or fraudulent intent, the ombudsman could not require HSBC to refund the payments.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website