Upheld: irresponsible account switching process and failure to execute account closure instructions complaint against HSBC UK Bank plc

Decision detail

Summary

Mr V and Mrs V complained that HSBC processed their account switch incorrectly and failed to close their joint account when requested. In May, Mr V attended a branch to close the joint account and switch to Santander using CASS, accompanied by a private translator. HSBC made an error in July by closing the wrong account and failing to close the joint account. Despite Mr V's phone calls in June and August, the issue remained unresolved, requiring a second branch visit where the account was finally closed. The ombudsman upheld the complaint and ordered HSBC to pay £131 for additional costs incurred on the second branch visit, in addition to the £200 compensation and £180 switching bonus already offered.

The Ombudsman's reasoning

The ombudsman found that HSBC made a clear error in processing the switch and failing to close the joint account. While the May branch visit costs were not recoverable (as other closure methods were available and the visit was necessary regardless), the second branch visit and associated phone call were necessitated by HSBC's error and failure to resolve the issue when Mr V called in August. The ombudsman determined that £200 compensation for distress and inconvenience was fair and reasonable given the nature and duration of the issue, and that the £180 switching bonus payment was appropriately offered despite uncertainty about Mr V's eligibility.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website