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City watchdog criticises TSB's 'poor' communications ahead of second grilling by MPs

City watchdog the Financial Conduct Authority (FCA) has heavily criticised TSB for “poor” communications with customers after an IT meltdown last month led to outages to vital online services.
FCA chief Andrew Bailey fired an opening salvo against the bosses of TSB in a letter to Nicky Morgan, chairman of the powerful Treasury select committee.
Both Mr Bailey and Paul Pester, the under-fire chief executive of TSB, are due to appear in front of the committee on Wednesday afternoon to account for their handling of the fiasco.
A botched TSB system upgrade in April led to thousands of customers being unable to access their money for days. While most problems have now been fixed, TSB’s online and mobile services have still not returned to full functionality.
In his letter, Mr Bailey said the watchdog had been “dissatisfied with TSB’s communications with its customers”, adding it did not believe TSB had been “open and transparent about the issues experienced”.
City watchdog criticises TSB's 'poor' communications ahead of second grilling by MPs

FCA boss Andrew Bailey is also set to appear before MPs

Credit:
 Clara Molden
Commenting on Mr Pester directly, Mr Bailey said he had portrayed an “optimistic view” of the state of TSB’s services in his previous widely-criticised appearance before MPs and said “greater caution would have made sense”.
Mr Bailey added that he did not believe TSB had met its obligations under payment services regulations to refund “all relevant customers as soon as practicable”.
“The regulator does not make such criticisms lightly. I am deeply concerned by TSB’s poor communications about the scale and nature of the problems it has faced; by its response to customer fraud; and by the quality and accuracy of the oral and written evidence provided by Dr Pester to the committee,” Ms Morgan said.
Ms Morgan accused Mr Pester of “staggering” complacency during the TSB boss’s last grilling, in which he was seen to have downplayed the issues experienced by customers.
Mr Pester has apologised for the system outages and said no customers would be left out of pocket.
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