Upheld: service failure - unresolved technical issue with business banking app complaint against HSBC UK Bank Plc

Decision detail

Summary

P complained that HSBC's business banking app had been freezing regularly for over a year, requiring multiple reinstallations. Although HSBC offered compensation in 2024 and the issue appeared resolved, the same problem recurred in late 2025. HSBC acknowledged the problem affected multiple customers and had a team investigating, but failed to resolve it or provide timescales for resolution. The ombudsman found HSBC had not taken the issue seriously enough and upheld the complaint, awarding £750 in compensation (between the investigator's recommended £450 and the customer's requested £1,000) for the distress and inconvenience experienced up to October 2025.

The Ombudsman's reasoning

The ombudsman found that P had experienced persistent difficulties with HSBC's business banking app for a considerable period (over a year). HSBC had failed to properly investigate and resolve the issue, had not provided assurances or timescales for resolution, and had made contradictory statements about whether the problem existed. The ombudsman determined that HSBC had not taken the issue as seriously as it should have. While the investigator's recommended £450 compensation was considered insufficient given the extended duration and ongoing nature of the problem, the customer's suggested £1,000 was deemed excessive. An award of £750 was determined to be fair and reasonable compensation for the distress and inconvenience experienced up to October 2025.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website