RBS hit by new IT blunder as debit cards fail in shops
RBS customers were unable to use their debit cards yesterday in the latest embarrassing IT glitch for the bailed-out bank. Many found their PINs had been blocked when they came to pay for their shopping, just over a year after the group was hit with a £56million fine for a computer failure that left millions unable to make payments for weeks.
The New Year’s Day problem affected Royal Bank of Scotland and NatWest customers using debit cards with a chip and PIN reader. Those using contactless payment, Apple Pay and credit cards were unaffected, according to the bank.
A spokesman said last night the issue was affecting a ‘very small number of customers’ using their debit cards at tills, and apologised for the inconvenience caused.
But angry customers took to social media to vent their fury at the New Year meltdown. One, Joanne Clark, wrote on Facebook: ‘What a lovely start to the new year! I had an embarrassing moment when I got to the checkout with my £50 worth of shopping for my card to be declined. With two kids playing me up and me panicking as we were far from home and nothing in the cupboards.’
On Twitter, Paul Kelly asked RBS: ‘Can u tell me the issue with Tesco and their chip and pin machines for RBS customers in there? Very, very embarrassing!’ James Stevens tweeted: ‘Went to get my weekly shopping and my card is blocked. Been waiting 15 mins for help on phone.’
RBS, which also owns NatWest, was bailed out by the taxpayer in 2008.
It has a track record of IT failures and has previously admitted to failing to invest properly in its IT systems for decades.
In September customers were told the bank’s systems had failed nationwide, which meant thousands were left unable to withdraw their money.
In November 2014, the state-backed group was hit with a £56million fine from the Bank of England and the Financial Conduct Authority watchdog after an IT crash meant as many as 6.5 million customers were unable to make payments for up to three weeks.
At the time, RBS admitted to ‘unacceptable weaknesses’ in its computer systems.
A spokesman said: ‘We are aware of some issues with customers using debit cards and are working hard to fix them.’
On the RBS ‘help’ Twitter feed, the bank apologised to customers who complained, telling them: ‘We are aware of some issues using debit cards and are working hard to fix them. Sorry and thanks for your patience.’
Last month, it emerged RBS is facing a possible probe by the City regulator after failing to properly inform customers about their dormant bank accounts.
The bank began an internal inquiry after ‘misinforming’ customers who asked for money locked in inactive accounts to be returned. Some 4,500 depositors were told their savings were not held by the bank when they were. The accounts affected by the computer-related error contain an average of £50.
RBS said: ‘Unfortunately we wrongly advised some customers they did not hold a dormant account with us. As soon as we discovered this we took steps to correct our error.
‘We are writing to all affected customers and asking them to visit their local branch with ID to reclaim their outstanding balance. We have apologised for the inconvenience caused and are making sure we put this right.’
The latest embarrassments for RBS and new chief executive Ross McEwan comes soon after the Treasury indicated it could complete the sale of its remaining 73 per cent stake in the bank by 2020-21. RBS and NatWest have 26 million UK customers, including two million in Scotland.
‘What a lovely start
to the new year’