Not upheld: Account closure without notice complaint against HSBC UK Bank Plc

Decision detail

Summary

Mr H complained that HSBC blocked his account and refused to release his funds, causing significant financial difficulty. HSBC took this action as part of its regulatory obligations for ongoing monitoring of existing relationships. The ombudsman reviewed confidential evidence and found that HSBC acted fairly, reasonably, and within its contractual terms in blocking the account. The ombudsman determined that HSBC was not obliged to provide a reason for the block and found no mistakes or delays in the process. The complaint was not upheld.

The Ombudsman's reasoning

As a regulated UK bank, HSBC is required to carry out ongoing monitoring of existing relationships and may restrict or block accounts to meet legal and regulatory obligations. The ombudsman reviewed the evidence and found HSBC acted fairly, reasonably, and within its terms and conditions. HSBC was not obliged to provide a reason for the block, and the ombudsman found no mistake or delay in the review or blocking process.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website