You are here: Home - Saving & Banking - News -

TSB chief to be grilled over online banking chaos

Written by: Paloma Kubiak
TSB and parent company Sabadell are to be questioned by MPs this week over the IT problems it suffered which left millions of customers without access to their accounts.

The influential Treasury Committee will take evidence from TSB and parent company Sabadell on Wednesday 2 May after customers were locked out of accounts for days following its banking platform upgrade.

CEO, Paul Pester, along with chairman of TSB, Richard Meddings and a representative of Sabadell (yet to be confirmed) will be questioned.

Chair of the Treasury Committee, Nicky Morgan MP wrote to Pester last week demanding answers over the IT meltdown and the CEO responded with an apology to customers and pledged to waive overdraft fees and interest charges.

Interest on the TSB Classic Plus Account will be raised from 3% to 5% for both new and existing customers, it confirmed.

However, Pester has also responded to Morgan’s questions. In his letter to the MP, he wrote: “A number of fixes have been implemented over the days since the new platform came into operation. The work by IBM and others will lead to a detailed remediation plan aimed at enabling TSB to provide a full suite of services to its customers as soon as possible and the delivery of a robust architecture.

“In addition to fixing the technology issues we have found with the platform, we have launched a proactive customer redress programme. The objective of the programme is to make good on my commitment that no customer will be out of pocket as a consequence of these issues.

“The redress programme includes responding to individual complaints from customers, proactively identifying customers through social media and through our own data who we think may be suffering hardship and a blanket waiving of all overdraft charges, fees and interest for all customers for the month of April.”

Regarding reports that customers could view other users’ data, Pester wrote: “Having completed an investigation I can confirm that 402 customers were able to see data we normally would not make available to them. I have written to all 402 customers apologising for this. Within these 402 customers all payments were investigated with one eventually being identified as fraudulent. The customer will be remediated in our normal way.”

Morgan replied: “The Treasury Committee is extremely concerned by the problems at TSB, and by the apparent miscommunication to customers about the extent and nature of these problems.

“It’s been reported that services such as online banking have been down for some TSB customers for over a week. Many individuals and businesses will have made arrangements for the planned outage, but not for the additional time that the systems have been unavailable.

“We will take evidence from TSB and Sabadell representatives to find out how they got into this mess, who is responsible, and how they are putting it right.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week