Upheld: account administration error, inadequate customer service, failure to provide clear information complaint against HSBC UK Bank Plc

Decision detail

Summary

Mrs B complained about HSBC's administration of her credit card account after agreeing to a voluntary payment arrangement in March 2025. When her May statement showed a payment amount of over £500 instead of the expected £300, she spent several hours on the phone with HSBC trying to understand the error, and remained confused even after the call. HSBC accepted the error and paid the difference plus £40 compensation, but Mrs B sought additional compensation for the distress and impact on her disability. The ombudsman upheld the complaint and ordered HSBC to pay a further £200, finding this fair compensation for the inadequate explanations, unnecessary lengthy phone call, and disability-related impact, bringing total compensation to over £420.

The Ombudsman's reasoning

The ombudsman found that HSBC failed to provide clear explanations about the voluntary payment arrangement and that the lengthy phone call was unnecessary. Mrs B experienced significant stress from the unaffordable payment amount, spent over three hours on the phone without getting clear answers, and suffered additional pain due to her disability. The ombudsman considered that HSBC's previous payments (£40 for call costs and £182.32 credit balance reduction) were appropriate for those specific aspects, but additional compensation of £200 was warranted for the distress, inconvenience, and disability-related impact. The ombudsman rejected Mrs B's request for further increase, finding that total compensation of over £420 was fair and reasonable in the circumstances.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website