Prime Minister backs Nicky Morgan over TSB failings

The Prime Minister has backed Nicky Morgan's criticism of TSB after an IT meltdown left thousands of customers without access and in some cases gave individuals access to other people's accounts and personal information.

Ahead of this afternoon's evidence session before the Treasury Select Committee, in which TSB will explain what happened and why it took multiple days to resolve, Morgan asked Theresa May if she agreed the bank's failings were "unfair to businesses who can't pay in their takings, unfair to vulnerable customers and particularly unfair when so many banks are still closing branches".

The committee chair said a reliable IT infrastructure was "essential" in the modern economy.

May agreed, telling Morgan: "In today's world of modern banking, a robust, safe and reliable IT infrastructure system is an essential underpinning of that modern banking.

"I'm sure my right honourable friend and the Treasury Select Committee will get to the bottom of what has happened in the evidence they take."

TSB's chief executive Paul Pester, chairman Richard Meddings and Miquel Montes, group chief operating officer of parent company Sabadell, will appear before Morgan and the rest of the committee from 2:30pm today.

The problems, which were reported to have lasted for more than a week, were prompted as the bank transfers 1.3bn customer records from the Lloyds platform to one built by its new owner Sabadell.

Separately both the Financial Conduct Authority (FCA) and the Information Commissioner's Office (ICO) have made contact with TSB about the problems.

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CityAM

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