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TSB: up to 1.9m customers still facing online banking chaos TSB online banking chaos leaves MPs demanding action
(about 3 hours later)
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. TSB’s botched IT “upgrade” has snowballed into a full-scale crisis that has left up to 1.9 million customers locked out of their accounts for five days, with MPs demanding action and the bank facing a potential multimillion-pound compensation bill and regulatory fines.
As MPs demanded to know how many customers were involved and when the problems would be resolved, Pester said the bank would take down its systems for several hours on Tuesday in an attempt to fix the issues. All access to the bank’s internet and mobile services remains blocked, while customers calling its phone banking service report waiting times of more than an hour.
“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. In branches, some customers are being told it could be another 48 hours before they can access their accounts properly, while the bank’s website says some issues, such as one-time passwords and Isa transfers, will only be fixed “by the end of April”.
He said the bank would take down its mobile app and online banking “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 TSB chief executive, Paul Pester, apologised for the chaos, but did not give a definite timescale for the reopening of digital services, which were closed at 10.30am on Tuesday.
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. “Of course, customers can rest assured that no one will be left out of pocket as a result of these service issues,” he added.
Angry customers flooded social media with complaints, some saying they were unable to pay their mortgages or bills, or access cash. Many called for compensation from the bank. The botched transfer of banking data has plunged the bank into the worst turmoil since it was spun out of Lloyds. About 1.3bn customer records previously managed on IT systems at Lloyds Bank were transferred over the weekend to IT systems provided by TSB’s new owner, Spanish bank Sabadell.
While most TSB account holders have been able to continue using their cards to make payments and withdraw cash from ATMs, many say the problems are deeper than TSB is admitting.
Outside a branch in the City of London, Mac, a retired photographer and TSB customer, said he was “appalled” at the bank’s problems.
“All my direct debits have disappeared,” he said. “They were there yesterday, but gone today. And there’s something saying the last payment was in 2099. I’ve also had to change my password to get into the account.
“The thing that most infuriates me is the statements coming out of the bank. They are not being honest. They keep saying it’s ‘intermittent’ when it’s not. At first I tried to phone. I was on the line for an hour but then gave up and came down here. They have told me that it will be sorted out in 48 hours from today, but I don’t know what to believe.”
A businessman, Alex, who runs a professional consultancy firm, said outside the branch: “I have salaries to pay today. I’ve had to come down here to arrange for a bulk transfer over to HSBC, and we’ll have to pay the salaries from there. I tried calling their helpline, but after a while the line just goes blank. To be honest, we’ve had grief with them ever since we were moved from Lloyds. They’re not really a business bank.”
Customers have flooded Twitter, with some saying they were unable to pay their mortgages or bills, or access cash. Many have called for compensation.
Pester admitted that 402 TSB customer accounts had been exposed for a period on Sunday night. “Four hundred and two customers could see some data that we would not normally not show them online,” he said.
Samantha, a TSB customer in Doncaster, logged in on Monday only to find the account she was looking at was not her own. She said: “Yesterday morning I could see I had £200 more than what I should have. After logging off and then on again I could see the transactions were completely different to mine.
“After getting to work and checking the cash machine my account balance was shown at £0 and then 20 minutes later £245 – all these amounts were wrong. By the evening my accounts had vanished and now I am unable to get back in. I tried to call TSB yesterday and got an automated person speaking and then the phone went dead.”
Nicky Morgan, the chair of the Treasury committee, has written to Pester to demand answers and will also write to the Financial Conduct Authority.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.”“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. Following Royal Bank of Scotland’s June 2012 IT meltdown, which left customers locked out for days, RBS paid out £70.3m in compensation.
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. Multimillion-pound bonuses to Pester and 30 other senior TSB staff were dependent on the IT migration and are now under threat. The payouts, which include a £1.6m bonus for Pester, were frozen after TSB was forced to delay the move from Lloyds to Sabadell last year. TSB’s remuneration committee has yet to decide whether to pay the bonuses.
The spokesperson said customers could use telephone banking or go into a branch instead.
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.”
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.
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 #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 !! 😡😡😡
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.
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
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 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.
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