NatWest sorry for mortgages meltdown
Tuesday 03 July 2012
Some duplicate mortgage payments were mistakenly taken from customers during NatWest's IT meltdown, the bank's group has confirmed.
Royal Bank of Scotland (RBS) Group issued the latest in a series of apologies to customers and urged them to get in touch so it can put the problems right.
The group said it believes a "small number" of customers have been affected and promised that no one will be left permanently out of pocket.
A spokeswoman for RBS Group said: "We apologise to any customers experiencing problems today. We said last week that we expected to see a few bumps in the road for customers as we get things fully back on track.
"Any customers experiencing problems should contact our call centre or visit their local branch and we will put things right."
The group has been working "round the clock" to resolve the problems which began two weeks ago and meant NatWest, Ulster Bank and RBS customers' balances were not updating properly.
It has had greater difficulty clearing up the glitches, which meant people's wages did not appear and house purchases and holidays were disrupted, for Ulster Bank customers.
RBS Group chief executive Stephen Hester said last week that he will forgo his bonus this year because of the chaos and has promised a "full and detailed investigation".
Despite facing some calls to quit, he has said he is determined to "personally lead the process" of regaining customers' trust.
The banking group's initial findings were that the problems were created when maintenance on its systems, which are managed and operated by its team in Edinburgh, created an error which stopped people's accounts updating properly.
The problem was made worse because the team could not access a record of the transactions that had been processed up to the point of failure.
A "substantial backlog" was created because the group, which processes 20 million transactions a day, had to try to pinpoint the moment at which processing had stopped, which created more delays.
The bank boss said on Friday that, while a "large number" of customers' problems had been resolved through bank branches and call centres, around 15,000 required a greater degree of attention.
While the banking group has said no-one will be left permanently out of pocket and has urged people to keep records of how they were affected, many customers have argued they should be given compensation for their inconvenience on top of their losses.
Fears have also been raised that customers could unwittingly have their credit ratings blotted, although the bank is working with other agencies to make sure this does not happen.
RBS Group extended its opening hours to cope with the chaos and even took the step of opening on a Sunday for the first time.
Mr Hester has previously been forced to waive his £963,000 all-shares bonus amid public outrage over bankers' pay.
RBS paid £785 million in bonuses last year, including £390 million for its 17,000 investment bankers. While the total pot is 43% lower than the previous year, it followed a period in which the bank announced thousands of job cuts.
The beleaguered banking group had to scrap its corporate hospitality at Wimbledon as it grappled with the problems.
Some customers writing on NatWest's website today said they were still experiencing problems with money showing up in their accounts.
In a reference to Barclays chief executive Bob Diamond, who has fallen on his sword following the rate-rigging scandal, "Skint from Bradford" wrote on the "ideas" section of NatWest's website: "Mr Diamond has resigned - will you do the same Mr Hester?"
Ulster Bank has said that it has made "steady inroads" to its delays, but added that while the pace of progress has improved it has been slower than customers would have liked.
Ulster Bank customers should hopefully see their balances updating over the coming week, the bank's parent group has said.
Due to the way the technology was set up when the three banks were integrated, Ulster Bank payments happen to follow in sequence after those of NatWest and RBS, which "in no way" reflects any priority given to customers, RBS Group has said.
Analysts have said that people's decisions on whether to switch accounts could hinge on how satisfied customers are with how the banking group puts the problems right.
However, building society Nationwide said today that it has seen an 85% increase week-on-week in the number of customers opening and transferring their main account online.
Including customers who have switched their accounts in branch as well as online, the society said it has seen an overall rise week-on-week of 26%.
John Crossley, Nationwide head of current accounts, said: "Customers are clearly unhappy with recent events and are opting to vote with their feet."
Independent Partners: Get fee-free expert mortgage advice and find the right mortgage deal for you.
How to protect your assets if the stock markets begin to head south again
Child Maintenance Service to replace Child Support Agency - but is it better?
A student's guide to financial survival: You don't have to drown in debt at university
Bargain Hunter: Kit yourself out in sports gear - at a healthy discount of up to 75%
Energy firms found guilty of bad practice could have licences revoked under Labour government
- 1 'Alien thigh bone' on Mars: Excitement from alien hunters at 'evidence' of extraterrestrial life
- 2 West poised to join forces with President Assad in face of Islamic State
- 3 Mother fed her daughter tapeworms to make her skinny for pageant
- 4 Pamela Anderson rejects ice bucket challenge because of ALS experiments on animals: 'Mice had holes drilled into their skulls'
- 5 ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
Richard Dawkins on babies with Down Syndrome: 'Abort it and try again – it would be immoral to bring it into the world'
Scottish independence: English people overwhelmingly want Scotland to stay in the UK
Isis threat: Cameron wants an alliance with Iran
Michael Brown shooting: Chaos erupts on the streets of Ferguson after autopsy shows teenager was shot six times – twice in the head
Disgusting, frustrating, but intriguing: how the country really feels about its politicians
Bin bag full of cats' heads discovered near Manchester's Curry Mile
iJobs Money & Business
£30000 - £45000 per annum: Harrington Starr: A global investment management fi...
£65000 - £75000 per annum: Harrington Starr: Senior Network Engineer-(CCIE, CC...
£70000 - £80000 per annum: Harrington Starr: Senior Network Analyst - (CCIE, C...
£60000 - £80000 per annum: Harrington Starr: Senior Network Engineer-(Design, ...
Day In a Page
A first-floor flat with two bedrooms, a spacious reception room and communal grounds in a leafy part of London
A three-bedroom flat with a spacious rootop terrace and balcony, accessed from a private gated courtyard
A Grade II-listed pile with six bedrooms, stables and 39 acres of grounds in Standlake
A two-bedroom flat with boutique hotel-style interiors, close to the foodie haunt of West End Lane
A two-bedroom flat in a beautiful old vicarage, with many original features, close to the city centre
A three-bedroom 16th-century home with an aga kitchen, private gardens and heated outdoor pool, in Hadleigh
A three-bedrom home in sought-after Queen's Gate Mews, with Italian marble-finished bathrooms
Surrounded by glorious countryside in the village of Udimore, sits this impressive four-kiln oast and barn conversion
A five-bedroom house in the picturesque village of Kettlewell, north Yorkshire
An 18th-century former coaching inn with original staircase, open fireplaces and beams throughout
A Grade II-listed Georgian town house with three bedrooms and a south-facing courtyard, near Arundel Castle
Feel on top of the world at this über chic penthouse on the 37th floor of one of Europe’s tallest blocks.
A Grade II-listed Victorian villa with six bedrooms and two further cottages, all with spectacular sea views
A grade II-listed, Georgian cottage with mature 50ft garden, perfect for summer entertaining
A magnificent Georgian pile with turrets, seven bedrooms, a heated pool and four acres of gardens
Fairoak Farm has five bedroom suites, gym, outdoor swimming pool and golf course
Chic two-bedroom river-fronted flat with a private lift that delivers you directly to your home
A spectacular seven-bedroom Tudor pile, once owned by Henry VIII, with 18 acres of land
A seven-bedroom Georgian property previously used as a picturesque wedding venue
A split-level flat in a church conversion with two en suite bedrooms and 1,200sq ft of living space
A three-bedroom bungalow situated behind an impressive stone wall, £645,000
Windsor Castle overlooks this three-bedroom Victorian cottage located on one of Windsor's smartest roads
Chapel House is a former vicarage with nine bedrooms in the beautiful Upper Wye Valley
A five-bedroom B&B and separate owner's accomodation with potential for conversion
Enjoy summer by the Thames in this two double-bedroom converted warehouse in Rotherhithe village
A one-bedroom, luxury apartment with private gym and concierge service in Moorgate
A four-bedroom house in Hermitage Gardens with three reception rooms and landscaped gardens
A seven-bedroom Grade II-listed property with a separate self-contained apartment
A five-bedroom Victorian house with three reception rooms and galleried landing, £695,000
A six-bedroom farmhouse with five acres of land in a former cloth-making village
A secluded seven-bedroom detached house with large private garden, £490,000
A three-bedroom cottage overlooking Sarratt village green with open fires and solid oak floors
A three-bedroom maisonette flat in a Grade I-listed, Georgian townhouse in a sought-after location
A one-bedroom apartment located within a private gated development, north of Turnham Green
Look forward to a brighter future at two-bedroom Sunny Cottages, ideal for Londoners looking to downsize
A three-bedroom red-brick cottage with outbuildings and pretty gardens, £200,000
This three-bedroom flat within a former textile factory spans the corner of the fourth floor and has a balcony