Not upheld: account closure and fund retention complaint against HSBC UK Bank Plc

Decision detail

Summary

Mrs B opened an HSBC account in February 2025 and received a £4,000 payment from company A in September 2025. HSBC restricted the account in October and subsequently closed it with immediate effect, citing concerns about Mrs B's entitlement to the funds. Upon closure, HSBC retained £4,000 of the £4,012 balance. Mrs B complained that the bank failed to return the full balance and provided an invoice and work examples to support her claim to the funds. The ombudsman found that while Mrs B's evidence was insufficient to demonstrate her entitlement, further verification from company A might change the bank's view, but upheld HSBC's decision not to release the funds based on currently available evidence.

The Ombudsman's reasoning

The ombudsman accepted that HSBC acted fairly in both restricting and closing the account. While Mrs B provided evidence of an invoice and work examples, the ombudsman found this evidence insufficient to demonstrate her entitlement to the £4,000. The ombudsman acknowledged that further evidence, such as verification from company A, might change the bank's view, but based on currently available evidence, the bank had not acted unfairly in retaining the funds.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website