Not upheld: account restrictions following scam report and alleged disability discrimination complaint against HSBC UK Bank Plc trading as first direct

Decision detail

Summary

Mr S complained that first direct discriminated against him as a disabled customer by restricting his account access after he reported a scam payment. The bank suspended online and mobile access but restored read-only access and offered multiple communication options including telephone banking with assisted communication and chat service. The ombudsman found that first direct acted fairly and reasonably in maintaining restrictions to protect Mr S's funds while requiring further discussion about the scam concerns, and that the bank provided adequate reasonable adjustments for his disability. The complaint was not upheld, with the ombudsman noting that Mr S should contact first direct using the offered methods to address the bank's concerns.

The Ombudsman's reasoning

The ombudsman determined that while first direct restricted account access, this was justified by its legal and regulatory duty to protect customer funds following a reported scam. The bank provided reasonable adjustments including read-only access, multiple communication channels (telephone with assisted communication, in-branch, and chat), and information about third-party services and Power of Attorney options. The restrictions were not disproportionate, and Mr S retained alternative ways to access funds and make regular payments. The ombudsman noted that while discrimination cannot be formally determined by the FOS, the bank's actions were fair and reasonable when considering relevant law and good industry practice.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website