Not upheld: Service failures generally complaint against HSBC UK Bank Plc

Decision detail

Summary

Mr A, holding an online business account with HSBC, had his phone, debit card and passport stolen while abroad in July 2025. After HSBC blocked the card, Mr A found himself unable to access his account or funds because he could not reset his app credentials without his phone, and could not complete verification procedures to update his address or receive a replacement card overseas. Despite multiple attempts to resolve the issue through phone banking, branch visits, and written requests, Mr A remained unable to satisfy HSBC's security verification requirements. HSBC ultimately proposed transferring the funds to an account in Mr A's name in his country of residence. The Ombudsman found HSBC had acted fairly in maintaining its security procedures and considering alternative solutions, and did not uphold the complaint.

The Ombudsman's reasoning

The Ombudsman found that HSBC's security procedures and verification requirements were reasonable and necessary to protect customer accounts and comply with regulatory obligations. While the particular circumstances (theft abroad) created genuine difficulties for Mr A, these were not caused by HSBC's actions or failures. The Ombudsman determined that HSBC had considered options outside standard procedures and that the proposed solution of transferring funds to another account in Mr A's name was workable and balanced HSBC's business risk with Mr A's practical needs. The constraints Mr A faces are a result of his circumstances, not HSBC's conduct.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website