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TSB struck by new IT glitch just months after £330m meltdown

Mark Sweney
Photograph: Neil Hall/Reuters

TSB is facing a fresh IT glitch after customers failed to receive wages, benefits, pensions and other payments into their accounts.

The latest technical issue is likely to affect thousands of customers and comes just days after the publication of a scathing report into the handling of a computer meltdown last year that left 1.9 million customers locked out of their online accounts.

The bank said on Friday that some payments to TSB customers had not gone in overnight but would not say how many people were affected, or the total value of the missed payments. TSB has 5.2 million customers.

“Some payments into TSB accounts have been delayed overnight and we are working to process these as soon as possible today,” the company tweeted. “Customers can still use their cards to make payments or withdraw cash.”

The bank said customers who did not have sufficient funds to cover payments could call to get emergency cash.

“We apologise for the inconvenience this has caused and will ensure customers are not left out of pocket,” the bank said. “If TSB customers need emergency cash contact us via the number on the back of their card.”

However, one TSB customer, Iona Donnan, said she had been advised by the bank to borrow money from family or friends.

The cost of TSB’s computer system meltdown last April hit £330m last year, pushing the bank into a large annual loss. The outage occurred when TSB’s systems were due to be transferred from Lloyds computers to a new TSB database. Problems persisted for six weeks, with some customers given access to other customers’ accounts.

In May 2018, Paul Pester, the TSB chief executive, forfeited a £2m bonus and resigned four months later.

Commenting on the latest IT glitch, Martin Lewis, the founder of MoneySavingExpert.com, said: “Many customers will be struggling not to think that TSB stands for ‘The Screwed Bank’. Yet another major banking failure has left people worried about their wages and how they are going to pay their bills.

“Even if this is fixed quickly, this type of service is simply not good enough. My call to those who are affected by this and angry and disillusioned with their bank is to stop bitching, start switching.”