TSB waives overdraft fees and interest charges in wake of IT chaos


Britain's TSB Bank has called in International Business Machines Corp IBM.N to help resolve an IT crisis that has left dozens of customers without access to digital services for nearly a week, its CEO said on Thursday.

That tweet didn't go down well with TSB's increasingly frustrated clientele, particularly as Pester appeared unable to give any clear indication of when the problems would be fixed.

He broke his silence on Tuesday morning, saying he'd "just resurfaced after 48 hours with my teams who have been working as hard and fast as they can to get our services back up and running". But in the following days customers were locked out of accounts, and some reported having access to other users' details.

TSB's mobile and internet app is still not working properly following major glitches related to a weekend customer account migration, meaning that although systems in the background are working, customers can not always see what services are available.

Problems began at the weekend as TSB had been until been renting a banking platform from its former owner (Lloyds Banking Group) whilstits Spanish-owner Sabadell developed its own "state-of-the-art" platform.

He said this included direct debits, standing orders, payments including salary credits, and transfers going in and out of accounts.

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For customers of Ulster Bank, which is part of Royal Bank of Scotland, the glitch will bring back memories of one of the banking industry's biggest-ever IT failures.

It added that on average, around 750 customers each day opened a new bank account during the period and customer deposits grew £30.6bn, up £0.9bn year-on-year from £29.7bn.

Hundreds of customers have taken to Twitter to express their frustration at poor communication from the bank, with many demanding compensation for the stress caused.

Further, for any customer who has faced interest or charges from other providers or lenders as a result of the issues, TSB said it is asking customers to contact it to explain their circumstances so it can work with them on a case-by-case basis to make sure it "puts things right". After this week's debacle, it would be extraordinary if they were to receive anything extra at all.

The news came with a trading update for the bank and its owner Banco Sabadell. "It is not overly generous as a budget for that scale of migration".

Perhaps he should have checked with his London office before pushing out the obviously pre-prepared press release.