Top UK Banks Apologise for Massive Disruptions on Payday
On June 28, millions of customers across some of the UK’s largest banks, including HSBC, Virgin Money, Lloyds Bank, Barclays, and Nationwide, faced significant disruptions in accessing their accounts and making payments. The incident, which coincided with payday for many workers, highlighted vulnerabilities in the banking system and triggered widespread frustration among customers.
We’re really sorry that some customers are having issues accessing personal online and mobile banking. Our IT teams are working hard to get these services back to normal. You can still authorise online card purchases via SMS.
The glitch primarily affected the Faster Payments service, which allows near-instant money transfers online or via phone. HSBC UK acknowledged the issue as a “separate payments issue affecting multiple banks,” while Nationwide attributed it to a “third-party payments issue.” The problem left customers unable to access their accounts, make payments, or even check their balances, causing significant inconvenience, particularly on payday.
According to DownDetector, over 7,000 HSBC customers reported issues, with 67% facing mobile banking problems and 20% unable to log into their mobile accounts. Customers expressed their frustration on social media, with one user lamenting, “@HSBC_UK when payments go down on your payroll day. Thanks for the added stress!” Another added, “Still not loading properly. Very poor service. Why has this not been fixed yet?”
Bank Responses and Customer Apologies
We’ve experienced an issue this morning where some customers have seen delays to payments both in and out of their Virgin Money account. If you have tried to send a payment from your Virgin Money account and received an error message, please do not try to make the payment again.
In response to the widespread disruptions, all affected banks issued apologies and updates via their websites and social media platforms. HSBC UK stated, “We’re really sorry that some customers are having issues accessing personal online and mobile banking. Our IT teams are working hard to restore these services.” Virgin Money echoed similar sentiments, ensuring customers worked swiftly to resolve the intermittent issues.
Nationwide also confirmed delays in salary and pension payments due to the third-party issue but reassured customers that the payments would be processed by the end of the day. Barclays and Lloyds Bank communicated their efforts to support the Faster Payment system and advised customers to contact their internet banking teams for assistance.
Checking for Outages and Seeking Compensation
For those affected by such outages, several steps can be taken to check the status of their bank services and seek compensation for any incurred costs:
Checking Service Status: Most banks maintain dedicated website news pages to report service disruptions. Websites like DownDetector can also provide real-time updates on issues faced by other customers.
Documenting Issues: Customers should gather evidence if an outage leads to financial losses, such as missed bill payments resulting in fees. This includes noting the names of bank representatives spoken to, times of calls, and details of the conversations.
Making a Complaint: Customers should first approach their bank with documented evidence of the issues. Most banks have formal procedures for handling complaints, which can be found on their websites.
Escalating to the Financial Ombudsman Service (FOS): If unsatisfied with the bank’s response, customers can contact the FOS, an independent body that reviews evidence and decides on fair compensation. The FOS can direct banks to reimburse fees, charges, or fines incurred due to the outage.
Looking Ahead
The recent banking glitch underscores the importance of robust and resilient digital banking infrastructures. As banking increasingly digitises, the reliance on seamless online and mobile services grows. Therefore, banks must invest in improving their IT systems to prevent future disruptions and maintain customer trust.
For customers, understanding the steps to take during such outages and knowing their rights regarding compensation is crucial. While banks are not legally required to compensate for service disruptions, persistent and documented complaints can often result in reimbursement for any financial losses incurred.
Conclusion
In conclusion, the June 28 banking glitch is a stark reminder of the potential vulnerabilities within the banking system. Banks and customers must remain vigilant and prepared to promptly and effectively address and mitigate the impacts of such incidents.
