Not upheld: service failure in card delivery and payment processing complaint against HSBC UK Bank PLC

Decision detail

Summary

Ms W complained about HSBC's handling of replacement debit and credit cards after she lost her original cards and phone in 2023. She claimed the cards were misdirected and that service failures in telephone banking led to missed payments and adverse credit file information. The ombudsman found that HSBC reasonably sent the cards to a branch given Ms W's temporary housing situation, provided clear collection instructions, and appropriately managed the situation when the original branch closed by notifying Ms W and redirecting the cards to another location. The complaint was not upheld as HSBC did not act incorrectly or unfairly, despite the inconvenience caused by the delay.

The Ombudsman's reasoning

The ombudsman found that HSBC took reasonable steps to ensure replacement cards were made available for collection, provided clear instructions about what Ms W needed to bring, and offered the option of appointing someone to collect on her behalf. Given Ms W's circumstances of living in temporary accommodation, sending cards to a branch rather than posting them was reasonable. When the original branch closed, HSBC attempted to contact Ms W and wrote to inform her of the new collection location. Although there was a delay and inconvenience, the ombudsman could not find that HSBC acted incorrectly or unfairly.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website