Half of TSB customers still cannot access their accounts

IT chaos enters its seventh day as bank pledges: no one will be out of pocket

HALF of TSB’S online banking customers were still unable to access their accounts last night after a week of chaos, the bank said.

Today, the fiasco enters its seventh day after the firm’s attempt to shift five million customers on to a new banking platform last weekend proved disastrous, leaving customers unable to access their own money.

As the technical problems have persisted, Paul Pester, the bank’s chief executive, has repeatedly tried to reassure people that the TSB’S new IT system is working.

His comments sparked fury as customers continue to report a myriad of problems including getting access to strangers’ accounts, card failures, incorrect balances and mysterious overdrafts appearing.

Last night, a spokesman said: “Internet banking is currently operating at around 50 per cent of capacity. For every 10 customers who try to access our internet banking, five will be able to access this service.”

Gareth Shaw, Which? money expert, said: “As this fiasco drags on, TSB customers will be really concerned. Anxious customers could be incurring fines, penalties and even suffering the effects of a bad credit rating as a result of TSB’S shambles.

“If the bank is to restore the trust of its customers, it must be swift in responding to those affected and in providing compensation. Customers should note down every time they’re affected as evidence to ensure they receive what they’re due.”

An effort by the bank to upgrade systems for its 1.9 million active online and mobile customers failed a week ago, leaving hundreds of thousands unable to access their accounts.

TSB tried to switch five million customers and 1.3 billion records to software run by Banco De Sabadell, its Spain-based parent, from a system operated by Lloyds Banking Group, which sold TSB three years ago.

The fiasco could result in TSB paying millions in fines and compensation with customers already starting to receive redress for the inconvenience.

On Friday, a customer thought to be the first to receive compensation was paid £40 by TSB, £15 to cover interest charged for delayed payments on her credit card, and a further £25 for the inconvenience.

TSB also said it will consider claims from non-tsb customers who suffered losses as a result of banking services being lost.

The bank added that it will waive overdraft fees and interest charges in April for its retail and small business customers, as well as increasing the interest rate on its Classic Plus account to 5 per cent from 3 per cent.

“No one will be left out of pocket as a result of these problems,” Mr Pester said.