Upheld: administrative handling failure and service delay complaint against HSBC UK Bank Plc

Decision detail

Summary

Ms C complained that HSBC refused to provide information about an HMRC payment to her closed business account, citing a 6-year retention period. After Ms C made multiple contact attempts over two years, HSBC's Transaction Resolution Team located the payment details two days after the initial refusal. The ombudsman found that while the retention period itself was reasonable, HSBC should have conducted full internal checks before advising Ms C that records were unavailable. The firm's failure to do so caused Ms C unnecessary delay and stress during a difficult period when she needed the information for police investigation and court proceedings. The ombudsman upheld the complaint and ordered HSBC to pay £150 compensation.

The Ombudsman's reasoning

While HSBC's 6-year retention period is consistent with industry expectations and reasonable, the firm should not have told Ms C records were unavailable before conducting full internal checks. The fact that HSBC subsequently located the payment and later provided transaction details to the FOS demonstrates the information was available all along. Staff appear to have defaulted to retention period advice without completing sufficient investigation. Ms C's multiple contact attempts over two years, including branch visits and at least five calls since 2023, support her testimony that she sought help in 2023. The delay caused Ms C stress and inconvenience during a difficult time, particularly given the urgent nature of her request for police investigation and court proceedings.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website