Partially upheld: account restriction, safeguarding review process, misinformation about payments complaint against HSBC UK Bank Plc

Decision detail

Summary

F, a company represented by its director Mr H, complained that HSBC blocked its account during a safeguarding review and conducted the review unclearly. The review was delayed due to a misunderstanding about an individual's role within the company, which was not adequately explained by the bank. Additionally, HSBC provided incorrect information about direct debit payments during the restriction period. The ombudsman upheld the complaint in part, finding that while HSBC's processes are its own responsibility, the lack of clarity and guidance, combined with the misinformation, warranted compensation of £100 in addition to the £100 already paid by the bank.

The Ombudsman's reasoning

The ombudsman agreed with the investigator that while HSBC's safeguarding processes are a matter for the bank to determine, when those processes lead to inconvenience or errors in individual cases, compensation is appropriate. The review delay was caused by a misunderstanding about the individual's role that could have been clarified with better guidance. The incorrect information provided about direct debit payments constituted a separate error. An additional £100 award was justified for the overall inconvenience caused.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website