IT compo cringe

TSB has been accused of paying “cringeworthy” levels of compensation to customers affected by its IT meltdown.

Bank bosses told the Treasury Select Committee 24,000 customers had received money.

But Labour MP John Mann cited one customer whose wedding was hit by the computer problems who had been offered £100. He told TSB chief executive Paul Pester and chairman Richard Meddings: “You are paying pitiful, embarrassing, cringeworthy levels of compensation.”

Pester again apologised for the problems, caused by the move from one IT system to another, six weeks ago. And he admitted 12,500 customers had switched to another bank.

An error saw 370 customers who switched having death notices sent out to suppliers. It also emerged that 1,300 customers had money stolen from accounts by fraudsters.

Pester said levels of fraud soared during the IT crisis and apologised for delays getting through to its hotline.

MPs questioned whether TSB bosses would be able to quit with big “golden parachute” payoffs.

The IT issues have cost TSB £70million.