Not upheld: processing error and inadequate complaint handling complaint against HSBC UK Bank PLC
Financial Ombudsman decision DRN-6261329 of 2026-05-18T00:00:00+00:00. processing error and inadequate complaint handling complaint against HSBC UK Bank PLC. Outcome: Not upheld.
Decision detail
| Reference | DRN-6261329 |
|---|---|
| Decision date | 2026-05-18T00:00:00+00:00 |
| Firm | HSBC UK Bank PLC |
| Product | savings (Cash Individual Savings Account - ISA) |
| Claim type | processing error and inadequate complaint handling |
| Outcome | Not upheld |
| Remedy | HSBC has already paid £750 compensation for distress and inconvenience, and credited £219.31 for interest adjustment. The ombudsman recommended that Ms S check her credit file for any adverse markers relating to her ISA and report any findings to HSBC immediately. No additional remedy was ordered. |
Summary
Ms S complained that HSBC incorrectly debited her Cash ISA on three occasions between 20 November and 2 December 2025 due to a processing error, causing a significant negative balance and requiring multiple contacts with the bank to resolve. The debits were caused by a staff error from HSBC's back-office team that should have been caught by internal control checks, and a third debit occurred after Ms S had already complained. HSBC repaid the funds by 4 December, paid £750 compensation, and credited £219.31 interest, but did not initially explain the interest calculation despite Ms S's requests. The ombudsman found the £750 compensation fair and reasonable under FOS guidelines, rejected Ms S's claim for £2,000, and did not uphold the complaint.
The Ombudsman's reasoning
The ombudsman acknowledged that HSBC made clear errors in debiting Ms S's ISA due to staff error and control check failures, and that this caused considerable distress and worry. However, the ombudsman found that HSBC handled the complaint promptly and fairly, resolved the issue within two weeks, and correctly recalculated the interest with no financial loss to Ms S. The ombudsman applied FOS compensation guidelines which provide that £750 is appropriate for considerable distress and significant inconvenience lasting over many weeks or months. The ombudsman rejected Ms S's claim for £2,000 as being outside FOS guidance, though noted that legal action remained available to her.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| HSBC UK Bank PLC, all decisions | 7,532 | 23% |
Source
Read the original decision on the Financial Ombudsman Service website