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TSB Customers Still Plagued by Technical Woes

Ross Kelly

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bank it failures

Nearly two million TSB customers have been left without access to their accounts due to technical difficulties. As regulators begin to wade into the affair trouble beckons for the beleaguered bank. 

Up to 1.9 million TSB customers remain locked out of their accounts for a fifth day due to technical issues caused by upgrades over the weekend.

The bank had warned customers that it would be carrying out upgrades to online and mobile services between 20-22 April. However, after the 6pm Sunday deadline customers claimed they still could not access their bank accounts, leaving many irritated and concerned.

A spokesperson for TSB told customers they could still use telephone banking or go into a branch instead when the services opened on Monday. Concern quickly shifted to anger as complaints started to flood social media platforms, with some saying they were unable to make their mortgage payments or even access cash.

TSB CEO Paul Pester responded to customers via Twitter on Tuesday morning:

Pester also sought to calm fears of monetary losses for customers, adding:

TSB’s apologetic overtures appear to be falling on deaf ears with some customers demanding compensation after the debacle, as one customer tweeted he had been left “dead in the water.” For many, internet banking is a staple aspect of day-to-day life and the inconvenience caused by such a dramatic mistake has turned people’s digital lives upside down.

Speaking to Digit, TSB said CEO Paul Pester has “written personally to each affected customer apologising and reassuring them that their data is safe” and that “we have also tracked every payment made by these customers’ accounts and spoken to every customer to confirm each payment’s validity.”

Source of the Problem

TSB was previously a part of Lloyds Banking Group, but after being spun off was purchased in 2015 by Spain’s Banco Sabadell. As part of the transition, Banco Sabadell sought to move TSB away from its Lloyds legacy IT systems.

Regulators Stepping In

The Financial Conduct Authority (FCA) and the Information Commissioners Office (ICO) are now wading in on the affair. Both these authorities have the power to slap TSB with enormous fines for this botched incident and have confirmed they will continue to monitor the situation. The FCA says it is liaising with the firm to ensure the issues are rectified.

TSB risks facing fines on a similar scale as others who have fallen foul of the FCA and ICO. In 2015 the ICO fined Carphone Warehouse £400,000 for data breaches after a massive cyber attack exposed customer details. The Royal Bank of Scotland was fined £42 million by the FCA in 2012 after IT-related issues left over 6.5 million customers locked out of their accounts. Over £70 million in compensation was paid out to customers after that affair, which saw the company battered by a variety of regulators for incompetence.

Ross Kelly

Staff Writer

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