Not upheld: Account administration errors complaint against HSBC UK Bank PLC

Decision detail

Summary

Mrs D complained that HSBC treated her unfairly by passing her credit card account (outstanding balance ~£2,000) to a debt recovery company in January 2026. HSBC had agreed a £10 monthly repayment plan with Mrs D in July 2022, but she experienced ongoing financial difficulties, made inconsistent payments, and failed to respond to multiple requests from HSBC to discuss her circumstances and complete an income and expenditure review. The ombudsman found HSBC had acted fairly and reasonably in referring the account to debt recovery, noting that had Mrs D engaged with HSBC's requests, the outcome might have been different. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that HSBC had taken Mrs D's financial difficulties into account and acted fairly. Although Mrs D experienced extended financial difficulties, she failed to respond to multiple requests from HSBC to discuss her circumstances and complete an income and expenditure review. The ombudsman noted that had Mrs D responded to HSBC's requests, the outcome might have been different, but found no evidence of wrongdoing by HSBC in passing the account to a debt recovery company given her non-engagement.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website