Watch­dog warn­ing over Co-op Bank’s age­ing com­put­ers

The Sunday Telegraph - Money & Business - - Business - By Tim Wal­lace

THE Co-op­er­a­tive Bank faces fresh em­bar­rass­ment af­ter mar­kets watch­dogs crit­i­cised it for fail­ing to give cus­tomers clear enough in­for­ma­tion about over­draft charges.

The in­sti­tu­tion, which was res­cued from heavy debts by its lenders this year, has been slapped on the wrist by the Com­pe­ti­tion and Mar­kets Author­ity (CMA) over its aged IT sys­tems.

Banks are re­quired to tell cus­tomers the max­i­mum charge they face each month for unau­tho­rised use of their over­draft. Co-op Bank missed the Aug 2 dead­line be­cause its com­put­ers only gen­er­ate quar­terly data. The bank now has six months to up­date its sys­tems or it will be hauled into court.

The bank’s pre­vi­ous IT prob­lems in­clude writ­ing off al­most £150m when it aban­doned an un­fin­ished over­haul, and strug­gles to sat­isfy reg­u­la­tors that its sys­tems could re­cover from a se­ri­ous crash, cy­ber at­tack or other disas­ter.

The CMA ex­pects the bank will have to com­pen­sate around 1,300 cus­tomers who have ended up out of pocket be­cause of the lack of clear in­for­ma­tion.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.