Not upheld: account restriction during review and telephone banking suspension error complaint against HSBC Bank Plc
Financial Ombudsman decision DRN-6244400 of 2026-04-09T00:00:00+00:00. account restriction during review and telephone banking suspension error complaint against HSBC Bank Plc. Outcome: Not upheld.
Decision detail
| Reference | DRN-6244400 |
|---|---|
| Decision date | 2026-04-09T00:00:00+00:00 |
| Firm | HSBC Bank Plc |
| Product | business current account |
| Claim type | account restriction during review and telephone banking suspension error |
| Outcome | Not upheld |
| Remedy | No additional remedy ordered. The £100 compensation already paid by HSBC was deemed appropriate. An additional £200 offer made by HSBC remains available for acceptance if Mr J wishes to contact HSBC directly. |
Summary
A limited company complained that HSBC restricted its account for 14 days during an account review, causing it to close its restaurant and lose £8,000. Additionally, A complained that HSBC suspended its Business Telephone Banking access in error for approximately 24 hours. The ombudsman found that the account restriction was a legitimate regulatory requirement and any financial loss resulted from this reasonable decision, not from wrongdoing. The BTB suspension, whilst acknowledged as an error, caused no additional financial loss since the account was already restricted. The ombudsman upheld HSBC's £100 compensation as fair and reasonable, declining to order further remedy.
The Ombudsman's reasoning
The ombudsman found that HSBC was complying with its legal and regulatory obligations when it restricted the account for review purposes. Although sympathetic to the financial loss claimed, the ombudsman concluded that any loss resulted from HSBC's reasonable decision to review and restrict the account, not from wrongdoing. Regarding the BTB suspension, whilst acknowledged as an error, it caused no additional financial loss since the account was already restricted before and after the 24-hour suspension period. The £100 compensation already paid was considered fair and reasonable.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| HSBC Bank Plc, all decisions | 10,098 | 36% |
Source
Read the original decision on the Financial Ombudsman Service website