MPs have demanded answers from TSB, the bank floated out of Lloyds Bank and now owned by Spain's Banco Sabadell, over what has been described as an IT meltdown following its shift from Lloyd's banking platform over the weekend.
The meltdown hasn't just affected online banking, but also in-branch services. It coincides with a shift to Banco Sabadell's own banking platform following the £1.7 billion takeover in March 2015, less than two years after its demerger from Lloyds Bank.
MP Nicky Morgan, chair of the Treasury Select Committee, has written to the bank's CEO, Paul Pester, to try to get more information for the causes of the meltdown and how long it will affect users.
We're planning an upgrade to our systems between 4pm Friday 20th of April until 6pm Sunday 22nd of April. We're sorry but during this time some services, like online banking, making payments or transferring money won't be possible. For details please visit https://t.co/jSmnTgJcDZ pic.twitter.com/H3JWJtgNxC— TSB (@TSB) April 19, 2018
The bank has been plagued with IT issues since the weekend, when the IT platform migration took place. A series of problems, though, has locked out up to 1.9 million customers from online banking systems, as well as enabling users trying to log-in to online banking being able to see the account details of other customers.
Other customers, meanwhile, report erroneous account details, including someone who, overnight, apparently acquired significant arrears in their mortgages - which had also been re-denominated into US dollars.
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
TSB warned customers before the weekend that some of its online banking and money transfer services would be "unavailable" while it completed maintenance and upgraded its IT systems, which were once linked to its former parent, Lloyds Bank.
However, the window for the work, which was scheduled to run from Friday at 4pm to Sunday at 6pm, appears to have overrun into Monday morning, and is still unavailable on Monday afternoon.
Nevertheless, some customers who have tried logging on have reported on Twitter of seeing other people's accounts when they did so. One claimed to have seen an account totalling more than £20,000. Another apparently discovered he had been wrongly credited with £13,000 after logging back in.
Morgan said the reports of unauthorised transactions, access to other customers' accounts, and failures of in-branch services "have all the hallmarks of an IT meltdown".
"This is yet another addition to the litany of failures of banking IT systems. Potentially millions of customers could be affected by uncertainty and disruption," she 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."
Morgan said she will also be writing to the Financial Conduct Authority "in due course" for their assessment of the issue.
TSB said on Monday that there were still "intermittent issues" with its services, but didn't go any further than that. It also blamed "large volumes" of customers trying to access their accounts for not fixing it sooner, insisting it was "working as hard as possible" to restore the service.
Many customers - who didn't necessarily choose to bank with TSB but were transferred to it from Lloyds when it was de-merged - have vowed to ditch the bank.
This afternoon, meanwhile, the bank's CEO has admitted to ongoing issues that it is still struggling to fix, and has suggested that systems might not be working properly until tomorrow morning.
We're still working really hard to get our online banking and mobile app up and running. I appreciate how frustrating this is for our customers and I'm really sorry. Please bear with us and I will keep you updated.— Paul Pester (@PaulPester) April 24, 2018
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