Partially upheld: account opening transparency and customer service failures complaint against HSBC UK Bank Plc

Decision detail

Summary

Mr S, a minor, complained that HSBC opened two accounts without his awareness, resulting in deposits being made to a non-interest-bearing current account instead of a savings account. After discovering this over a year later, Mr S transferred his funds and raised a complaint. HSBC paid £75 for lost interest, but Mr S subsequently received conflicting information about interest rates over several phone calls, prompting a second complaint. The ombudsman found HSBC acted fairly regarding the account opening but failed to provide acceptable customer service regarding the conflicting interest rate information. The ombudsman partially upheld the complaint and ordered £100 compensation in addition to the £50 already paid by HSBC.

The Ombudsman's reasoning

The ombudsman found that HSBC acted fairly in opening two accounts as this was standard procedure for applicants over 11 years old, and Mr S received clear notification through welcome packs and debit card confirmation. However, the ombudsman agreed that HSBC failed to provide acceptable customer service by giving conflicting information about interest rates over several phone calls, causing confusion and stress particularly as Mr S was taking exams. While no actual financial loss occurred and the interest rate was ultimately correct, the service failures warranted compensation beyond the £50 already paid.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website