TSB chaos: Your rights if your bank has a meltdown – what you are and aren’t able to claim for

TSB chaos: Your rights if your bank has a meltdown – what you are and aren’t able to claim for

After a week of chaos for millions of customers of TSB, consumer lawyer Dean Dunham takes you through your rights when a bank messes up

It has been a shambles of a week for TSB, with online customers hit hard following days of computer chaos.

I have received raging emails from readers who have not been able to use their card abroad and from others who have not been paid because of the tech meltdown.

The bank forewarned its customers last weekend that it was moving its servers, which can cause disruption to internet banking services.

But things went from bad to worse, with at least half of TSB’s customers locked out of their online accounts all week

Your rights

If you lost money as a direct result, you should be able to reclaim it.

• I could not pay a direct debit – The bank has said direct debits and standing orders have not been hit. But if it turns out this is not correct and you suffer a loss, you will be entitled to money.
• I missed a payment because I couldn’t access my funds – You should get money back if you suffer a financial loss in this case.
• I did not get paid – This is slightly different as it will be your employer who has the contractual relationship with the bank. You will have to claim any losses from your employer and they will have a claim against the bank.

What has TSB done?

TSB boss Paul Pester said the bank was “on its knees” over the meltdown but said it would “come back fighting”. He has promised that no customer will pay overdraft fees or charges in April.

It will also increase the interest rate on its main current account from three to five per cent for existing customers.

Can I claim for the inconvenience?

Often, banks simply say no. Unless your issue can be directly linked to the tech issue, it is doubtful.

How do I claim?

TSB says on its website that it takes all complaints seriously and will do all it can to resolve your complaint within three working days. First contact your bank.

Make sure you have a clear explanation of your loss and bring any evidence. For instance, if you have been charged interest due to a late payment, show the bank a copy of a letter confirming this.

When you make your complaint, remind the bank that their CEO has stated that “no one will be left out of pocket”.

If your complaint is rejected

As a last resort, lodge a complaint with the Financial Ombudsman.