HUNDREDS of Tesco Bank customers were locked out of their credit card accounts and left unable to make payments due to a system outage earlier today.
Customers reported being unable to log into the Tesco mobile banking app and online banking platform.
Hundreds have been complaining that Tesco Bank’s services are down[/caption]
DownDetector reports showed that over 600 customers had encountered issues with the bank’s online services this morning.
More than 50% of the reported problems related to difficulties with mobile banking, while 35% of users experienced trouble accessing Internet banking.
Others claimed they had been unable to use their credit card for online payments.
Frustrated customers took to social media to express their concerns.
One person posted on X (formerly Twitter): “I cannot log on to mobile app or internet banking.
“When trying to get on to internet banking, I get a message saying that Tesco is having difficulty sending a one-time code to my phone.”
Another said: “Are they down? I’ve been trying to pay Tesco bank bill online for the past two days with no luck.”
One customer who says their card payments have been declined said: “I’m constantly getting ‘This service is not available’ when trying to make a credit card payment online.”
However, another added: “I’ve made card payments online since the website and app went down but even telephone banking can’t access accounts.”
Tesco confirmed that the issue was resolved at 5pm on Tuesday.
A spokesperson said: “We were aware of a technical issue that temporarily affected credit card customers from servicing their accounts and declined certain payments.
“We’ve been working hard to get this fixed and are pleased to report we’re now back up and running.
“We thank customers for their patience.”
Tesco Bank provides a variety of personal banking and insurance products, including personal loans, credit cards, car insurance, and pet insurance, to over five million customers.
In February, Barclays agreed to purchase Tesco’s retail banking division, which included the acquisition of nearly 3,000 employees.
While Barclays will run these services, they will continue under the Tesco Bank name.
Plus, Tesco Bank will retain some of its banking activities, including insurance, ATMs, travel money and gift cards.
The sale still needs to be approved by regulators and it is expected to be completed before the end of 2024.
Tesco Bank stopped offering mortgages through its bank in 2019 after seven years.
It’s 23,000 mortgage loans were sold to Lloyds Banking Group, which Halifax is part of, for around £3.8billion.
Tesco Bank also offered current accounts, which were closed to all customers in November 2021.
How can I check if my bank is down?
THERE are a few different ways to find out if your bank is experiencing an outage.
Senior consumer reporter Olivia Marshall explains how you can check.
If you’re trying to send money to someone, or you just want to check if you have enough cash for a coffee, finding your online banking is down can be a real pain.
Most banks have a dedicated news page on their website to show service problems, including internet banking, mobile apps, ATMs, debit cards and credit cards.
You can also check on any future work they have planned and what it might mean for you.
Plus, you can check websites such as Down Detector, which will tell you whether other people are experiencing problems with a particular company online.
Can I claim compensation for the outage?
Banks don’t have to pay out compensation to customers if there has been a drop in service, unlike how telecoms companies have to.
But if you have incurred costs as a result of service issues, it’s likely you could get your money back.
For example, if a bill payment didn’t go through as a result of an outage and you’ve been charged a fee for missing it, you should be able to claim that money back.
If your credit rating has been affected by a service outage, because you got a late payment fee after being unable to make a transaction, for example, you should also keep a record of this.
If you spoke to anyone to try and resolve the problem, make a note of their name and when you spoke to them, as well as roughly what you discussed and what they advised you to do.
You can find out more details about how to complain on the bank’s website.
It is worth gathering evidence of your problems so you can make a formal complaint to the bank directly.
What happens if my bank refuses to compensate me?
If you’re unhappy with how the bank dealt with your problem, you can contact the free Financial Ombudsman Service (FOS).
It is an independent body that will consider the evidence you present and make a fair decision about the action a bank should take.
The FOS can usually get involved 15 days after you’ve raised concerns with the bank.
In the case of an IT system outage at a bank, the FOS says any compensation depends on your circumstances and whether you lost out as a result.
If it thinks you did, it has the power to tell the bank to reimburse any fees, charges, or fines you were hit with, for example, if you were unable to make a payment on a credit card bill or to your mortgage provider.
It could also tell a bank to pay you for any money you didn’t receive, such as interest, if you weren’t able to pay money in.
If your credit score was affected, it may tell the bank to correct your credit file.
The FOS might also tell the bank to reimburse you for any extra costs you had to make, such as phone calls or trips to your local branch, as well as a payment for any inconvenience it caused.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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