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    Monday, July 30, 2018

    TSB boss faces more questioning from MPs

    TSB has five million customers in total
    Image: TSB has five million customers in total

    By Wale Azeez, Business reporter

    The TSB chief executive will appear before MPs on Wednesday for a second round of questioning over the bank's IT meltdown and the continued chaos facing thousands of customers.

    Paul Pester returns to face the Treasury select committee weeks after being rebuked by the MPs for failing to grasp the enormity of the company's botched computer system overhaul that left 1.9 million digital banking customers without access to their accounts.

    The fiasco drew 40,000 complaints from disgruntled clients.

    TSB began a planned IT upgrade in April to transfer 1.3 billion customer records from old parent company Lloyds to a system created by new Spanish owners Sabadell.

    The subsequently problems meant that Mr Pester was forced to give up a £2m bonus linked to the system migration's successful completion.

    Paul Pester giving evidence to MPs
    Image: Paul Pester giving evidence to MPs

    :: Customers still suffering one month after TSB meltdown

    The pressure facing the bank's chief executive and also chairman Richard Meddings is compounded by the Financial Conduct Authority (FCA), as it prepares to launch an ­investigation into TSB.

    The head of the watchdog Andrew Bailey will also be in attendance to give evidence to the committee.

    Last month Nicky Morgan MP, chair of the Treasury Committee, wrote to Mr Bailey to ask about the problems faced by retail and business customers following TSB's IT migration.

    Mr Bailey responded, saying that Mr Pester could have "shared more detail [on the incident] with the committee".

    Martin Lewis, personal finance champion and founder of MoneySupermarket.com also wrote to Mrs Morgan, asking MPs to compel TSB bosses to disclose "essential information" relating to the meltdown and associated disruption.

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    It emerged further problems ensued after customers who were sent apology letters by the bank were inadvertently forwarded personal details of other TSB clients.

    @TSB Still continuing to mess up what they can. Received a letter in my name. But the evelope also contains letters for other customers, containing all their personal details. Serious breach of GDPR #headsgone #TSBMeltdown

    — Dilpreet Pabla (@Dilleeee) May 30, 2018

    Mr Pester and Mr Meddings are scheduled to appear before the select committee at 2.30pm on June 6.

    Original Article

    Business
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