Upheld: irresponsible lending complaint against HSBC UK Bank Plc
Financial Ombudsman decision DRN-6405055 of 2026-06-10T00:00:00+00:00. irresponsible lending complaint against HSBC UK Bank Plc. Outcome: Upheld.
Decision detail
| Reference | DRN-6405055 |
|---|---|
| Decision date | 2026-06-10T00:00:00+00:00 |
| Firm | HSBC UK Bank Plc |
| Product | Personal loan |
| Claim type | irresponsible lending |
| Outcome | Upheld |
| Remedy | HSBC must: (1) Calculate total repayments made by Mr B and deduct from total loan received; (2) If overpaid, refund overpayments with 8% simple interest from date of overpayment; (3) If capital balance remains, arrange an affordable and suitable payment plan with Mr B; (4) Remove all adverse credit file information once balance is cleared or if overpaid; (5) Continue to exercise reasonable forbearance and communicate directly with Mr B to establish fair and sustainable repayment plan. |
Summary
Mr B complained that HSBC irresponsibly lent him £15,000 in October 2020 without proper checks, leading to repayment difficulties. An investigator upheld the complaint and recommended removing all interest and charges while requiring repayment of the capital balance under an affordable plan. Mr B subsequently requested full loan write-off citing health deterioration and contact difficulties with HSBC. The ombudsman upheld the complaint but rejected the write-off request, confirming the investigator's redress was fair and appropriate, as Mr B has had the benefit of the loan funds and should repay the capital borrowed.
The Ombudsman's reasoning
The ombudsman upheld the complaint on the basis that HSBC's original lending decision was unfair, as HSBC has accepted. However, the ombudsman rejected Mr B's request for full loan write-off, reasoning that Mr B has had the benefit of the loan funds and should therefore repay the capital borrowed. The standard redress approach for irresponsible lending complaints does not include full write-off unless a specific failing with particular impact on the lending decision is identified, which was not found here. The ombudsman confirmed the investigator's recommended redress was appropriate and fair.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| HSBC UK Bank Plc, all decisions | 7,532 | 23% |
| Personal loan, all decisions | 22,070 | 30% |
Source
Read the original decision on the Financial Ombudsman Service website