Not upheld: account restriction and delayed closure complaint against HSBC UK Bank Plc

Decision detail

Summary

Miss B complained that HSBC unfairly restricted her basic bank account. HSBC reviewed and blocked the account as part of its regulatory obligations to monitor business relationships and verify transaction purposes. While the review lasted many months and HSBC could have expedited matters and communicated better with Miss B, the ombudsman found HSBC's actions were fair and necessary to discharge its regulatory duties. The account has since been closed as Miss B requested, and no compensation was awarded.

The Ombudsman's reasoning

HSBC's actions were taken in line with its legal and regulatory obligations to monitor business relationships and establish the purpose and origin of transactions. While the review process took many months and could have been expedited, and HSBC could have handled communication better, these failings do not warrant compensation given the overall circumstances and HSBC's regulatory duties. The restriction of information during review is standard practice and not unfair.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website