Not upheld: Account closure without notice complaint against HSBC UK Bank Plc

Decision detail

Summary

W, a limited company, complained that HSBC unfairly blocked its account for 5 days in November 2025 while conducting a compliance review. Mr S, W's director, argued the block was unnecessarily long, caused significant business disruption and reputational damage, and that HSBC should have warned him and provided clearer information. HSBC maintained it acted in compliance with its legal and regulatory obligations and that its account terms permitted the suspension. The ombudsman found HSBC acted appropriately in blocking the account, completed the review in a timely manner, and was not obliged to provide detailed explanations, therefore not upholding the complaint.

The Ombudsman's reasoning

HSBC's decision to block and review the account was in line with its legal and regulatory obligations to prevent financial crime and protect customers. The account was blocked for only 5 days and HSBC was proactive in completing the review during this period. HSBC's procedures, including requesting clarification and back-and-forth communications, are reasonable and necessary to comply with regulatory requirements. HSBC is not obliged to provide detailed explanations for account reviews, and the information requested was standard for banking compliance purposes.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website