Not upheld: section 75 Consumer Credit Act claim handling and procedural fairness complaint against HSBC UK Bank Plc

Decision detail

Summary

Ms T complained that HSBC failed to handle her section 75 Consumer Credit Act claim properly regarding a faulty bathroom installation costing £7,495. She had paid the bathroom company and fitter separately using her credit card and was unhappy with work including a faulty cupboard, bath panel, leak, and non-working TV. HSBC accepted the TV was faulty and offered £600 but requested two quotes for the remaining issues; Ms T provided her own estimates instead. The ombudsman did not uphold the complaint, finding HSBC was entitled to verify the validity of the s.75 claim, seek independent evidence of breaches, and request proper quotes before payment. The £100 compensation for requesting duplicate information was considered fair.

The Ombudsman's reasoning

The ombudsman found that HSBC was entitled to satisfy itself that a valid s.75 claim existed, including verification of the debtor-creditor-supplier link and evidence of breach of contract or misrepresentation. While sympathising with Ms T's difficulties, the ombudsman considered it reasonable for HSBC to request two independent quotes rather than accept Ms T's own estimates, as the bank needed supporting evidence before paying out a substantial sum. The ombudsman agreed that only the three disputed items should be addressed, not a full refund, as the remainder of the bathroom was satisfactory. The £100 compensation for requesting duplicate information was considered fair.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website