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TSB: up to 1.9m customers still facing online banking chaos TSB: up to 1.9m customers still facing online banking chaos
(about 1 hour later)
Up to 1.9 million TSB mobile and internet banking customers remained unable to access their accounts for a fifth day on Tuesday after a botched IT upgrade over the weekend. The TSB chief executive, Paul Pester, has apologised to customers for a botched IT upgrade that has left up to 1.9 million mobile and internet banking customers unable to access their accounts for five days.
The transfer of banking data has plunged the bank into turmoil, with some customers saying they had rogue credits and debits on their accounts while others said they had been given access to random accounts. As MPs demanded to know how many customers were involved and when the problems would be resolved, Pester said the bank would take its systems down for several hours on Tuesday in an attempt to fix the issues.
“This isn’t the level of service that we pride ourselves on providing, and isn’t what our customers have come to expect from TSB, and for that I’m deeply sorry,” Pester tweeted.
He said the bank would take its mobile app and online banking down “for a few hours” to fix the issues. “We hope to be back up later this afternoon,” he tweeted, adding: “Of course, customers can rest assured that no one will be left out of pocket as a result of these service issues.”
The transfer of banking data has plunged the bank into turmoil, with some customers saying they had rogue credits and debits on their accounts, while others said they had been given access to random accounts.
Angry customers flooded social media with complaints, some saying they were unable to pay their mortgages or bills, or access any cash. Many called for compensation from the bank.Angry customers flooded social media with complaints, some saying they were unable to pay their mortgages or bills, or access any cash. Many called for compensation from the bank.
Nicky Morgan, the chair of the Treasury committee, has written to Pester to demand answers and will also write to the Financial Conduct Authority.
“This is yet another addition to the litany of failures of banking IT systems,” Morgan said. “It simply isn’t good enough to expose customers to IT failures, including delays in paying bills and an inability to access their own money. Warm words and platitudes will not suffice. TSB customers deserve to know what has happened, when normal services will resume, and how they can expect to be compensated.”
One TSB customer, Matthew Neal, who wanted to check how much he had spent at the pub on Sunday night, told the BBC he had access to someone else’s £35,000 savings account, £11,000 ISA and a business account when he logged into his account on Monday night.One TSB customer, Matthew Neal, who wanted to check how much he had spent at the pub on Sunday night, told the BBC he had access to someone else’s £35,000 savings account, £11,000 ISA and a business account when he logged into his account on Monday night.
A TSB spokesperson said: “We are currently experiencing large volumes of customers accessing our mobile app and internet banking which is leading to some intermittent issues with people accessing our services. We are really sorry for the inconvenience this is causing our customers and want them to know we are working as hard and as fast as we can to resolve this problem.”
The problems started on Monday morning, after the planned IT upgrade took place over the weekend. Customers had been warned they would not be able to conduct transactions on the internet or their mobile phone between Friday 4pm and Sunday 6pm.The problems started on Monday morning, after the planned IT upgrade took place over the weekend. Customers had been warned they would not be able to conduct transactions on the internet or their mobile phone between Friday 4pm and Sunday 6pm.
The spokesperson said customers could use telephone banking or go into a branch instead. The bank’s customer service line reopened at 7am. The spokesperson said customers could use telephone banking or go into a branch instead.
Regulators are investigating the IT breakdown. Both the Financial Conduct Authority (FCA) and the Information Commissioner’s Office (ICO) said they were looking into the problems. They have the power to fine TSB for the botched system upgrade and for data breaches. Both the Financial Conduct Authority (FCA) and the Information Commissioner’s Office (ICO) said they were looking into the problems. They have the power to fine TSB for the botched system upgrade and for data breaches.
The FCA said: “We are aware of the issue and liaising with the firm.” The City watchdog can also censure a firm and take action against individuals by fining or banning them from working in the City.The FCA said: “We are aware of the issue and liaising with the firm.” The City watchdog can also censure a firm and take action against individuals by fining or banning them from working in the City.
An ICO spokesperson said: “We are aware of a potential data breach in relation to the TSB and are making inquiries.” The biggest penalty the organisation has imposed to date was £400,000 on Carphone Warehouse for data breaches following a cyberattack in 2015.An ICO spokesperson said: “We are aware of a potential data breach in relation to the TSB and are making inquiries.” The biggest penalty the organisation has imposed to date was £400,000 on Carphone Warehouse for data breaches following a cyberattack in 2015.
Philip Augar, a former TSB board member, said on the BBC’s Wake up to Money: “If this sort of thing happens, ’fess up straight away, be honest and play it straight from the word go and that seems to have gone wrong.”Philip Augar, a former TSB board member, said on the BBC’s Wake up to Money: “If this sort of thing happens, ’fess up straight away, be honest and play it straight from the word go and that seems to have gone wrong.”
TSB was spun off by Lloyds Banking Group and then bought in 2015 by Spain’s Banco Sabadell. Banco Sabadell declared on Monday that it had “successfully completed the TSB technology migration” which moved TSB away from its Lloyds legacy IT systems. TSB was spun off by Lloyds Banking Group and then bought in 2015 by Spain’s Banco Sabadell.
Customers vented their anger on Twitter. Amanda Verbaan-Dunn, who owns the Wilton Hotel in Blackpool, said she was unable pay her staff’s wages. Some issues, such as receiving one time passwords, renewing savings accounts online and online ISA transfers, will only be fixed “by the end of April”, according to TSB’s service status website.
Amanda Verbaan-Dunn, who owns the Wilton Hotel in Blackpool, said she was unable pay her staff’s wages.
Oh well that was shortlived, well done again TSB. Woke up to a working app this morning but now it's gone down again. Come on get it sorted out @TSB #TSBOh well that was shortlived, well done again TSB. Woke up to a working app this morning but now it's gone down again. Come on get it sorted out @TSB #TSB
Whats really going on ?? Why our passwords and IDs are incorrect....when they are clearly not 😡?? And how long is this ridiculous situation going to continue ??? People have bills to pay and I like many others need to see our balances daily !! 😡😡😡Whats really going on ?? Why our passwords and IDs are incorrect....when they are clearly not 😡?? And how long is this ridiculous situation going to continue ??? People have bills to pay and I like many others need to see our balances daily !! 😡😡😡
I really hope you'll be compensating customers who have been unable to access their cash for 3 whole days while you mess around with your systems. I missed the 4pm deadline to transfer out cash to my main account and was left with zero the whole weekend. disgusting.I really hope you'll be compensating customers who have been unable to access their cash for 3 whole days while you mess around with your systems. I missed the 4pm deadline to transfer out cash to my main account and was left with zero the whole weekend. disgusting.
One also said she was unable to use her debit card on Tuesday morning. Several also said they were unable to use their debit cards on Tuesday morning.
@TSB I can’t even use my debit card this morning! This is ridiculous #TSB@TSB I can’t even use my debit card this morning! This is ridiculous #TSB
Royal Bank of Scotland was fined £56m by regulators after a bungled software upgrade left more than 6.5 million customers locked out of their accounts in June and July 2012.Royal Bank of Scotland was fined £56m by regulators after a bungled software upgrade left more than 6.5 million customers locked out of their accounts in June and July 2012.
RBS was fined £42m by the FCA – the biggest penalty ever imposed by the City watchdog for IT-related issues – and a further £14m by the Prudential Regulation Authority. The bank paid £70.3m in compensation to UK customers and £460,000 to individuals and firms who were not customers. RBS was fined £42m by the FCA – the biggest penalty ever imposed by the City watchdog for IT-related issues – and a further £14m by the Prudential Regulation Authority. The bank paid £70.3m in compensation to UK customers.
Hannah Maundrell, the editor-in-chief of financial website Money.co.uk, said: “TSB are not the only bank to have these issues and our banks really need to pull their socks up because this keeps happening again and again. It’s really not good enough when so many customers are being encouraged to bank online.
“It’s worrying when your bank can’t keep on top of their IT systems and can cause lots of other problems if payments aren’t made or funds aren’t available. We hope that TSB customers wouldn’t be left out of pocket as a result of these issues.”
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