Not upheld: Irresponsible lending complaint against HSBC UK Bank Plc

Decision detail

Summary

Mrs S complained that HSBC lent her £10,000 irresponsibly and should not hold her liable for the loan, which she obtained after being scammed into believing she was making a genuine cryptocurrency investment. She applied for the loan on 20 March 2025 and transferred the funds through her own accounts to a cryptocurrency wallet where they were lost to the scam. HSBC assessed the loan as affordable based on Mrs S's declared income of £39,000 and calculated disposable income of £1,575 per month, with monthly repayments of £227. The Ombudsman upheld HSBC's position, finding that Mrs S's admission of applying for the loan herself and using the funds for what she believed was a genuine investment meant HSBC's liability decision was fair, and that the affordability checks were proportionate and adequate.

The Ombudsman's reasoning

The Ombudsman found that Mrs S accepted she had applied for the loan herself and used the funds for what she believed was a genuine investment, making HSBC's decision to hold her liable fair. The affordability assessment was proportionate given the loan size of £10,000, monthly repayment of £227, and the information available to HSBC. Mrs S's declared income of £39,000 with calculated disposable income of £1,575 per month made the repayments affordable. The credit checks showed no adverse data, and it was reasonable that other concurrent borrowing would not appear on the credit file within the four-week reporting lag.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website