HSBC UK Bank Plc · DRN-6213650

The complaint Mr D complains that HSBC UK Bank Plc failed to refund disputed transactions made from his credit card and incorrectly reported adverse information to credit reference agencies. He’d like compensation for the impact caused to him. What happened Mr D had a credit card with HSBC. In July 2025 HSBC sent a text message to Mr D titled ‘HSBC fraud alert – Have you made this transaction’. The transactions listed were two payments of £100 and Mr D confirmed he hadn’t made them. HSBC responded to say he confirmed the payments were unrecognised and they’d keep his card blocked. However, HSBC kept the charges on Mr D’s credit card – and in August 2025 HSBC contacted Mr D regarding his outstanding balance. Mr D explained to HSBC that he’d notified them it was fraud, and HSBC attempted to rectify this by removing the balance on his card, closing it (as per Mr D’s request) and removing the negative information from his credit file. However, they failed to remove a late payment fee which Mr D identified in December 2025. Mr D complained and HSBC accepted they’d made an error in not removing the fraudulent charges and then reporting negative information to credit reference agencies. They removed the late payment fee and offered Mr D £150 compensation. Mr D wasn’t satisfied with the offer and came to our service. On bringing his complaint to our service Mr D advised that he’d received a mortgage in principle offer in July 2025 and another credit card provider reduced his limit, which he believes was due to HSBC’s negative reporting. HSBC increased their offer to £200, which our Investigator thought was fair But Mr D disagreed – he reiterated that due to the reduction in his credit limit, from £12,000 to £4,300 – he had to reduce his spending to maintain a good credit score. And he decided not to pursue purchasing a property because he was concerned about his credit file. He argued that HSBC allowed a fraudulent credit to debit, incorrectly reported adverse data and only corrected this after he contacted them repeatedly. Mr D advised he contacted his other credit card provider to ask for any evidence they had to explain why his credit limit had reduced – but nothing further has been provided to our service. What I’ve decided – and why I’ve considered all the available evidence and arguments to decide what’s fair and reasonable in the circumstances of this complaint. HSBC accept that they made an error in managing the fraudulent payments identified on

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Mr D’s credit card – and they should have rectified this at the time. They’ve now removed the fraudulent credit, the late payment fee and corrected Mr D’s credit file. Initially HSBC offered £150 compensation, which they’ve now increased to £200. I’ve considered whether I think this is sufficient below. I realise this will disappoint Mr D but I’m satisfied £200 is in line with our approach for trouble and upset awards. Mr D mentioned the ‘real world impact’ of HSBC’s actions, and I accept he likely did reduce his spending and his attempts to purchase a property during that time. However, without specific evidence to show that Mr D’s other credit card limit was reduced solely due to HSBC’s actions I can’t be sure this is something HSBC are responsible for. Even if I could I’d need more substantial evidence to show the direct impact a reduction in Mr D’s credit limit had on him to increase any award. Putting things right I’m satisfied that £200 fairly compensates Mr D for the inconvenience caused to him by HSBC’s actions. My final decision My final decision is I uphold this complaint and direct HSBC UK Bank Plc to: • Pay Mr D £200 compensation Under the rules of the Financial Ombudsman Service, I’m required to ask Mr D to accept or reject my decision before 28 April 2026. Jeff Burch Ombudsman

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