Did HSBC mis-sell your packaged bank account?

HSBC sold packaged current accounts — including HSBC Advance and HSBC Premier — that carried monthly fees in exchange for bundled benefits such as travel insurance, breakdown cover, and preferential rates. Monthly fees typically ranged from £12.95 to £22.95 depending on the account tier.

Under BCOBS 5.1.6R, HSBC was required to communicate clearly and fairly with customers about the nature of these accounts, including the ongoing monthly charge, what the benefits were, and whether a customer was eligible to use them. In many cases, this obligation was not met.

Grounds for complaint against HSBC

  • You were not clearly told you were paying a monthly fee when the account was sold or upgraded
  • You were upgraded from a free account without your knowledge or consent
  • You were not informed that HSBC offered free current accounts as an alternative
  • You were told you did not qualify for a free account when you were eligible
  • The bundled insurance was unsuitable — you were ineligible to claim due to age, health, or other restrictions
  • You attempted to close or downgrade the account and were pressured to maintain it

HSBC Advance accounts. HSBC Advance was positioned as a premium account with fee-based benefits. Many customers were moved onto Advance as part of a relationship upgrade without being clearly told the account carried a monthly fee or that they could remain on a free alternative.

The FCA rules HSBC was required to follow

BCOBS 5.1.6R — HSBC was required to communicate with retail banking customers in a way that was clear, fair and not misleading. This applies to the disclosure of fees, benefits, eligibility, and the existence of free alternatives.

ICOBS 2.5.1R — Where bundled insurance products were included, HSBC was required to ensure those products were suitable for the customer's demands and needs. Selling travel insurance to a customer with an undisclosed pre-existing condition, or breakdown cover on a vehicle not covered by the policy, constitutes a breach of this rule.

Consumer Duty (PS22/9) — From July 2023, HSBC must deliver good outcomes and avoid foreseeable harm to retail customers. This obligation reinforces earlier breaches where customers continue to pay for accounts that were originally mis-sold.

What redress can you claim?

  • Full refund of all monthly fees paid since the account was opened, confirmed from HSBC's own records
  • Statutory interest at 8% per annum on each fee from the date it was deducted to the date of repayment
  • Compensation for distress and inconvenience as a standalone head of redress, separate from the fee refund

How to make a formal complaint to HSBC

Your complaint must be in writing to trigger HSBC's obligations under DISP 1. Verbal complaints to a branch or by telephone do not carry the same weight and may not be treated as formal FCA complaints.

Email your complaint to:
customerrelations@hsbc.com

Or write to:
HSBC Bank plc
PO Box 6201
Coventry
CV3 9HW

Subject line:
Formal Complaint — Mis-sold Packaged Bank Account

Your letter should identify the account, state the grounds for complaint, cite BCOBS 5.1.6R, claim all three heads of redress, and state your intention to refer to the FOS if not resolved within 8 weeks.

Request your records. HSBC holds all records relating to the sale and servicing of your account. Under FCA rules, the burden of demonstrating appropriate sale rests with HSBC — not with you. Asking HSBC to provide documentation of the original sale and any subsequent upgrades strengthens your complaint.

What happens after you complain?

HSBC must issue a final response within 8 weeks of receiving your complaint. If they do not respond within 8 weeks, or their response is unsatisfactory, you can refer to the Financial Ombudsman Service.

If HSBC rejects your complaint

Refer to the Financial Ombudsman Service within 6 months of HSBC's final response. The FOS is free, independent, and does not require professional representation.

financial-ombudsman.org.uk
0800 023 4567

Before you accept any offer from HSBC

Check any settlement offer includes all three heads — fees, 8% interest, and distress compensation. A partial offer is not a final offer. You can push back or refer to the FOS for an independent assessment of fairness.