What a nightmare the TSB computer fiasco is turning out to be – and it’s still going on. If you’ve somehow managed to avoid this story, here’s a recap. TSB, which is owned by the Spanish Banco Sabadell, had a planned shutdown of its services from Friday 20 April so it could move 5.4 million customer accounts details from its former owner Lloyds to a new system managed by Sabadell. But straight away problems emerged with some customers unable to access their accounts online or through the mobile app. And now, nearly two weeks later, some are still affected. There have been reports of missing accounts, and small businesses suffering because they can’t manage their banking. Those who have tried to phone the bank have been left hanging on the phone for ages. And the branches too have been affected by computer problems.
I am so glad I am a boring soul who has never been tempted to move bank accounts. The TSB current account looked attractive, what with paying credit interest (now increased from 3% to 5% as ‘a way of saying thank you’ says the bank). But that’s not helpful. If you are caught up in the TSB cock up then what you need is advice on what to do. TSB says that no customer will be out of pocket as a result of this series of events and says there will be no overdraft fees or interest charges in April as well as the increase in credit interest.
TSB on its website says that it will resolve complaints within three working days (which sounds a bit ambitious to me) – see here for more information. Don’t think you’ll automatically get something: you will need to show that you have lost out. For example, if you’ve been charged interest by a credit card company because your payment didn’t go through or went through late, you might need to produce proof of that. According to Money Saving Expert, one TSB customer has already received £40 compensation because she couldn’t access her account to make a transfer to her credit card provider. She was awarded £15 for interest charged plus £25 for inconvenience.
And if you don’t get satisfaction from TSB then you can go to the Financial Ombudsman. This is a free (for complainants) service but you will need to have exhausted TSB’s complaints system first. Hopefully, it won’t come to that. The damage to TSB could be that customers move elsewhere: Go Compare said there’s been a big increase in online searches on its site about moving current accounts. Have a look at our guide to account switching here. But possibly it’s best to wait until you get your TSB account straight first – as well as any compensation owed.