Not upheld: service failure - mobile banking app displaying incorrect payee information complaint against HSBC UK Bank Plc

Decision detail

Summary

Mr H complained that after making a payment to his wife via HSBC's mobile banking app on 1 February 2026, the app incorrectly recorded the payment as being made to an unknown third party, although the funds actually reached his wife's account. HSBC acknowledged a known system-wide glitch in its mobile banking app and paid Mr H £60 compensation, apologising for poor telephone service when he raised his concerns. Mr H sought an increase in compensation, arguing HSBC had mischaracterised a systemic failure as a minor error and that as a Premier account customer he deserved better service. The ombudsman upheld HSBC's remedy, finding that since the payment reached the correct recipient, Mr H suffered no financial loss, and the £60 payment along with HSBC's apology and commitment to agent training was fair and reasonable compensation for the distress and inconvenience caused.

The Ombudsman's reasoning

The ombudsman acknowledged that while HSBC had a system issue that caused incorrect information to be displayed, the actual payment reached the correct recipient and Mr H was aware of this when he called HSBC. No financial loss occurred as the funds were not paid to the wrong payee. The ombudsman recognised that Mr H experienced worry and inconvenience, and that HSBC's telephone service could have been better. However, the ombudsman considered that HSBC's apology, commitment to provide training to agents, and the £60 payment already made constitutes fair and reasonable compensation for the distress and inconvenience caused. The ombudsman noted that compensation should be based on what actually happened, not what may happen in the future, and that Mr H was only directly impacted once by the system issue.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website