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Thousands facing bank holiday without pay after HSBC system failure Thousands facing bank holiday without pay after HSBC system failure
(35 minutes later)
Thousands of people have been left without their salaries because of an IT glitch at HSBC that means employers who use its business banking accounts cannot make payments.Thousands of people have been left without their salaries because of an IT glitch at HSBC that means employers who use its business banking accounts cannot make payments.
Reports began emerging on Friday morning of workers who have been left without pay on the Friday before bank holiday weekend. Reports began emerging on Friday morning of workers who have been left without pay on the Friday before the bank holiday weekend.
The bank has suffered a problem with the electronic payments system its business banking customers use to make, among other things, salary payments.The bank has suffered a problem with the electronic payments system its business banking customers use to make, among other things, salary payments.
“None of our 150 staff have been paid, which before a long weekend is a disaster,” the owner of one business told The Guardian. “HSBC are very non-committal as to whether any monies will clear between now and Tuesday when the banks reopen and it’s causing a huge concern for our young workforce who were relying on their pay before the bank holiday. “None of our 150 staff have been paid, which before a long weekend is a disaster,” the owner of one business told the Guardian. “HSBC is very non-committal as to whether any monies will clear between now and Tuesday when the banks reopen, and it’s causing a huge concern for our young workforce who were relying on their pay before the bank holiday.”
She added: “Most have been forced to go over their overdrafts and some will literally be left with no funds until it’s resolved.”She added: “Most have been forced to go over their overdrafts and some will literally be left with no funds until it’s resolved.”
Alan Charlesworth, managing director of an insurance and legal recruiter, tweeted that none of his staff had been paid on Friday morning. “HSBC when will this be sorted?” he tweeted. Carl Chapman, who runs an IT services business in London, said none of his 130 staff had been paid. “We obviously pushed all the right buttons to make payments a few days ago and assumed HSBC would do its bit. We discovered instead at about 7.30 on Friday morning that none of our staff had received their money.”
It is not yet known how many business banking customers are affected but they make up a significant proportion of the bank’s 16.1 million UK customers. The number of people relying on payments from HSBC’s business accounts is likely to run into thousands if not millions. Chapman said the firm had paid its employees “emergency funds” but that he is still awaiting a response from the bank.
Salaries are not the only payments affected by the IT failure. Businesses that bank with HSBC are finding they are unable to pay their suppliers, with the online banking facilities temporarily closed. The bank said that 275,000 payments have been affected, including payments to customers of other banks. It said in a statement: “There has been a fault in the information used to process some payments from HSBC business customers.
“We are taking immediate steps to ensure the payments reach beneficiaries as quickly as possible. We will work with other banks to ensure that customers do not lose out as a result of today’s problems.”
Salaries are not the only payments affected by the IT failure. Businesses that bank with HSBC are finding that they are unable to pay their suppliers, with the online banking facilities temporarily closed.
Charlotte Abbot, who runs PrintHut.co.uk based in St Neots, Cambridgeshire, says she has been deeply frustrated by her inability to make payments this morning.Charlotte Abbot, who runs PrintHut.co.uk based in St Neots, Cambridgeshire, says she has been deeply frustrated by her inability to make payments this morning.
“I can’t pay any of our suppliers at the moment. I need to pay a few this morning, and it it keeps coming up with error warnings online.”“I can’t pay any of our suppliers at the moment. I need to pay a few this morning, and it it keeps coming up with error warnings online.”
Hundreds of people have already taken to Twitter to express their concern.Hundreds of people have already taken to Twitter to express their concern.
Originally it had seemed that only workers with HSBC accounts were affected but it later transpired that the problem is with businesses who hold accounts with the banking giant. The payment problems have therefore hit customers who have accounts with any of the UK’s banks or building societies.
The problems appeared to have started in the early hours of Friday morning, although as recently as 8.30am the bank was tweeting people to say it was not aware of the problem.The problems appeared to have started in the early hours of Friday morning, although as recently as 8.30am the bank was tweeting people to say it was not aware of the problem.
Doug Silkstone from Bristol told The Guardian: “We normally get paid at midnight on the last working day of the month. This means that the problem probably started from sometime on Thursday evening. Doug Silkstone from Bristol told the Guardian: “We normally get paid at midnight on the last working day of the month. This means that the problem probably started from sometime on Thursday evening.
“For me, it’s a real problem because I have repayments, rent and overdraft fees to worry about, as well as a bank holiday weekend to miss out on.” “For me it’s a real problem because I have repayments, rent and overdraft fees to worry about, as well as a bank holiday weekend to miss out on.”
The bank has told its customers that it is having a problem with BACS payments. Direct debits and deposits are made using BACS, the system that is responsible for the electronic processing of financial transactions within the UK. The bank has told its customers that it is having a problem with Bacs payments. Direct debits and deposits are made using Bacs, the system that is responsible for the electronic processing of financial transactions within the UK.
It said in a statement: “We are aware that some customers have not received expected credits today. We apologise for any inconvenience caused and are working hard to resolve the issue as quickly as possible.”
The bank said it did not have any more information, including how many people have been affected, until it had fully investigated the problem.
Have you been affected by the glitch? Get in touch via the form below:Have you been affected by the glitch? Get in touch via the form below: