HSBC compensation rights as banking app goes down and payments decline

HSBC has apologised to customers after app and online banking users in the UK were left unable to access their accounts today (27 August).

Thousands of customers were affected by the outage, which first occurred at 11am, with many taking to social media to complain that they were unable to pay certain bills, and others claimed their payments had been declined.

The outage also reportedly affected First Direct, which is owned by HSBC (via Chronicle Live).

The bank was inundated with replies from frustrated customers demanding updates as to when the online services would be back up and running.

Taking to X at 11.45am, HSBC wrote: "Service update 11:45am: We understand some customers are having issues accessing banking services right now. We’re really sorry and are investigating as a matter of urgency. We will share an update as soon as possible."

HSBC complaints and response

HSBC's online banking and app faced an unexpected outage (Serene Lee/SOPA Images/LightRocket via Getty Images)

"Some customers? How about thousands!!" one customer wrote. "This will cost me £ if I can't make payments today. I don't have access to a laptop today, only my phone."

Another added: "Your mobile app and online services are down, and online payments I make are being declined. What's going on?"

"I have rent and bills to pay today," a third replied. "It charges me if I'm late, what will I do?"

Meanwhile, some customers vented their frustration at online services going down amidst bank closures over the past few years, with HSBC banks announcing the closure of 114 branches in the UK in 2022.

However, HSBC has since announced that the issue had been fixed, telling the BBC: "We apologise to our customers who were impacted, and we'll continue to monitor systems closely."

HSBC compensation rights

HSBC closed 114 UK branches in 2022 (Matt Cardy/Getty Images)

Much like other banks in the UK, HSBC are under no obligation to automatically pay any compensation for its services going down for a short period.

The system for banking companies differs from that of the telecoms industry, where compensation is due for loss of services like broadband. However, if you experience any financial implications due to the online banking and app being down, you should be able to get your money back.

For example, anyone unable to make payments during the outage should be able to contact their bank and request compensation.

If it is a credit agreement, you should contact the company with which you have the credit to explain the situation, so there is no mark against your file.

If you can't get the strike removed from your credit score, keep a record of it for any future credit agreements you might have to take out, such as a mortgage.

And, if you do have any lasting negative repercussions, you can complain to the free Financial Ombudsman Service (FOS).