FCA investigates TSB IT failure
The Financial Conduct Authority has launched an investigation into TSB’s IT meltdown which affected 1.9 million customers.
Andrew Bailey (pictured), FCA chief executive, said information about investigations wouldn’t usually be made public, but in this case it’s justified owing to the level of public interest.
In a letter to the Commons Treasury Committee, he said: “The FCA has been dissatisfied with TSB’s communications with its customers and we have had concerns that TSB was not being open and transparent about the issues experienced.
“[T]he current communications were perceived as poor, and could reduce trust in TSB and in the banking sector as a whole.”
Nicky Morgan, head of the Financial Conduct Authority, said: “I am deeply concerned by TSB’s poor communications about the scale and nature of the problems it has faced.”
Communications-wise they were partially responding to TSB chief executive Paul Pester’s comments in the wake of the meltdown, when he told MPs at the Treasury Committee that most TSB customers could carry out transactions as normal.
Five weeks have passed since customers were locked out of their online and mobile services but customers are still complaining about service standards, security issues and poor communication from the bank.