Not upheld: service failure, account access denial, debt recovery procedures complaint against HSBC UK Bank PLC

Decision detail

Summary

Mr C complained on behalf of his business C Ltd that HSBC denied digital access to its mobile-only business account for six months (March to September 2025) following the installation of a new mobile phone. Mr C claimed severe operational disruption, harassment through aggressive debt recovery, and demanded compensation of £1,000-£1,500 for the business and £500-£1,000 for himself, plus write-off of a £737 credit card balance. HSBC responded that account access was restricted due to failed security checks on 27 February 2025, and was only restored in September after Mr C passed security, noting that Mr C did not contact the bank again until 27 June. The ombudsman found no errors or poor service, determining that HSBC's security procedures were appropriate and that Mr C's delayed re-engagement contributed to the prolonged issue, and that debt recovery contact was standard practice. The complaint was not upheld, and HSBC's £50 goodwill offer was deemed fair.

The Ombudsman's reasoning

The ombudsman found that HSBC acted in accordance with regulatory security requirements by suspending account access when Mr C failed security checks. The ombudsman noted that Mr C did not re-engage with HSBC until four months after the initial issue, and that the matter was resolved once Mr C passed security in September. The ombudsman determined that HSBC's debt recovery contact was standard practice for unpaid debts and did not constitute harassment. The ombudsman also noted that as the complaint was brought on behalf of a business, personal distress and health impacts could not be considered.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website