RBS Systems Crash Again

Up to 17.5 million RBS banking group customers (NatWest, Bank of Ulster and RBS) were left without their money last night as the bank’s systems crashed yet again.

These systems outages are becoming somewhat tiresome!

RBS and NatWest To Refund £10M

It appears that some bank customers when withdrawing cash from an ATM are a tad forgetful and, believe it or not, don't actually take the cash dispensed from the machine.

What happens then?

The ATM sucks the cash back in and recredits the customer's account.

Well that's how most banks treat it, except NatWest and RBS which don't; instead, up until now, they have been crediting a "dump account".

However, that seems set to change as Finextra reports that Royal Bank of Scotland and NatWest have set aside a £10M reserve to refund up to 300,000 customers who made a withdrawal at the ATM but walked away without the cash.

The bank is apparently checking its records over the past seven years and will repay the money, plus the interest earned on the sum, to customers who forgot their cash. 

 

This brings a whole new meaning the phrase "bank error in your favour".

NatWest Systems Upgrades

As per the NatWest site, there will be some systems upgrades this weekend:

"We have some planned system upgrades happening over the weekend which means some of our services will be unavailable for short time periods.

- On Saturday 6th October, our Mobile Banking apps will be unavailable between 2am and 6am.
- On Sunday 7th October, our Online and Telephone banking services will be unavailable between 1am and 7am.

We're sorry for any trouble that this may cause you. You can still withdraw cash from an ATM and point of sale transactions are also unaffected.

Please remember it's vital to keep your personal details safe. Never reveal your personal information, including online and card security details to anyone. You should also never respond to any unsolicited or suspicious emails, phone calls or text messages or click on any attach ments [sic] that might be included in these."

Good luck everyone!

NatWest To Update Systems

NatWest will be updating various systems this weekend:

"On 8 September 2012, due to planned system updates, our Online, Mobile and Telephone banking services will be unavailable between 2am and 6am. We apologise for any inconvenience caused. Withdrawals can still be made via an ATM, and point of sale transactions are unaffected."

In light of what happened during another recent upgrade, let us trust it goes a little more smoothly this time around!

NatWest Online Crashed

NatWest online has just crashed, and apparently NatWest debit cards are not working either!

As per NatWest site:

"We're sorry but online banking is temporarily unavailable. Please try again later.

If you continue to experience this situation please contact the online banking helpdesk for further assistance.

For a list of helpdesk numbers, please see our page of contact numbers "

They fail to mention that their debit cards don't work either!

Oddly enough, Nationwide are also experiencing problems.

NatWest Update

NatWest issued a further email update (wrt its recent IT problems) to all its customers this morning:

"Dear XXXX,

We're writing to provide you with an update on the technical issues we faced recently.

Where we are now The original issue has now been fixed and it remains our first priority to continue to help our customers. If you incurred fees or charges as a result of this issue, we will arrange a refund and inform you when this will take place. You don't need to do anything as these refunds will be provided automatically.

We're also working with all the main credit reference agencies to ensure that none of our customers' credit ratings will be adversely affected.

What went wrong?
The problem was caused when maintenance on IT systems in Edinburgh disrupted the regular processing of overnight transactions. It took time to resolve this problem, which in turn created a backlog, so many customers' account balances were incorrect between
19 June and 6 July.

What we're doing to make sure this won't happen again
We have commissioned an independent audit to investigate how the problem arose and we will make all the improvements necessary to ensure it doesn't happen again. We will make the findings public when they become available.

Here to help
You can find the latest information, answers to common questions and help to resolve any outstanding queries, including how you can be reimbursed by visiting Help Point, or feel free to go into any of our branches, or call our 24/7 UK call centres free on 0800 656 9639 (minicom: 0800 404 6161).

Thank you again for your patience and for bearing with us. If you have any questions or there's anything you'd like to know, we're always happy to help.

Yours sincerely,


Chris Popple
Managing Director, Retail Banking"

NatWest IT Update

Despite the recent valiant attempt by Bob Diamond and Barclays to divert attention from their chums in NatWest, the NatWest IT glitch and the aftermath of that glitch continues to rumble on.

This morning NatWest sent yet another email update out to its hapless customers, subject line "Working hard to put things right":

"Dear ****,

We have fixed the underlying technical issue and are now working hard to help our customers that have been affected. I wanted to get in touch to let you know what we are doing to deliver on our promises.

Putting things right For the vast majority of our customers who have raised a concern we have resolved it straight away. Those that need more attention are being handled directly by our dedicated response team, who have so far resolved over 90% of the 21,000 cases received.

Reimbursing our customers
We made a promise that no customer will be left permanently out of pocket and we intend to keep it. We will automatically reimburse all of our customers' fees, charges and interest on their current accounts, credit cards, mortgages and loans where they have been charged or overcharged as a result of the incident.

Here to help
You can find the latest information, answers to common questions and help to resolve any outstanding queries by visiting Help Point, the dedicated area on our website. Or feel free to go into any of our branches, or call our 24/7 UK call centres free on 0800 656 9639 (minicom: 0800 404 6161).

Thank you for your understanding during this period and again we're sorry for any issues that we've caused.

Yours sincerely,


Chris Popple
Managing Director, Retail Banking "

I understand that the problems with Ulster Bank may well continue until 16 July.

The Stench of Corruption and Greed Overwhelms Britain's Financial Services Industry

Britain's tarnished financial services industry and banking sector seems intent on bringing about its own self destruction. Over the years there has been a litany of scandals eg:

- endowment mis-selling
- subprime mortgages
- PPI mis-selling
- LIBOR fraud
- NatWest computer meltdown
- Northern Rock, RBS etc etc to name but a few

However, it seems that the industry is determined to add to its list of self inflicted shame and dishonour. Step forward the usual suspects ie; Barclays (a familiar name), HSBC, Lloyds and RBS which have all admitted to mis-selling interest rate hedges to small and medium sized business customers.

Barclays, HSBC, Lloyds Banking Group and Royal Bank of Scotland have all agreed to immediately halt the sale of complex interest rate hedges to smaller businesses and have pledged to compensate potentially thousands of customers who have been screwed by them.

According to the Telegraph the FSA is of the view that about 28,000 businesses had been sold interest rate hedges.

Another nail in the coffin of the tarnished reputation of the UK's financial services industry.

The financial services industry is now fully immersed in its own self created shit, and quite clearly is on the verge of implosion.

Question For NatWest and Stephen Hester

Where's my money?

NatWest's Death March To Self Destruction II

Day 8 of NatWest's ongoing death march, and NatWest sent the following email to their hapless customers this morning at around 07:48:

"Dear ****,

We know that our current technical issues may still be impacting a number of our customers as we work to clear the backlog.

To make it easier for our customers experiencing difficulties accessing cash we have made the following arrangements. All our current account customers who have an RBS, NatWest or Mint credit card in good order can now:

*	Withdraw up to an additional £100 over their limit on their credit card, with over-limit fees or charges automatically waived or refunded
*	For Cash withdrawals on their card, cash advance fees as well as one month's worth of interest on the transaction will be waived or refunded

For all current account customers we will:

*	Automatically waive or refund overdraft fees and charges on current accounts for customers who have been impacted

We are making these commitments today and there is no requirement for any customer to take further action to benefit from these changes.

We appreciate this has caused an unacceptable level of inconvenience, and to help further we are again extending opening hours in over 900 NatWest branches from 8am until 7pm today.

For further support, please call us on either 0161 931 9959, 08457 77 77 66 or 0800 656 9639. Alternatively, for the latest information and answers to common questions please visit natwest.com

Yours sincerely,


Chris Popple
Managing Director, Retail Banking"

On the NatWest site Stephen Hester (CEO of RBS) is expecting the problems to last all week, as branches are going to remain open longer than normal all week:

"The problems of the past few days have caused disruption and inconvenience for our customers as well as for many customers of other banks. 

I am very sorry for the difficulties people are experiencing. Our customers rely on us day in and day out to get things right, and on this occasion we have let them down. This should not have happened.

Right now my top priority, and the priority of the entire RBS Group, is to fix these problems and put things right for our customers. 

This is taking time, but I want to reassure people that we are working around the clock to resolve these problems as quickly as we are able.

I also want to be clear that where our customers are facing hardship or difficulty we can and will help them. Our staff have already helped thousands of customers to access cash and we will continue to provide this service on a 24 hour basis while we work to resolve the problems. 

I also want to reassure customers that no one will be left permanently out of pocket as a result of this, and again, they should contact us directly about this.

We have doubled the usual number of staff in our call centres, and for the first time ever we will open 1,200 branches across the country on a Sunday from 9am to 12pm. We are also extending opening hours in over 1,000 branches on Monday 25th June from 8am to 7pm, and on Tuesday 26th June to Friday 29th June from 8am to 6pm.

Once again I am very sorry for the inconvenience."

Customers of NatWest should be warned that various criminals are now trying to take advantage of the chaos, and are sending out phishing emails.

As to what caused the glitch rumours abound that it was caused by software upgrade implemented by an outsourced IT function in India, NatWest are currently denying this. At some stage however, they will have to identify and explain exactly what when wrong and why it went wrong.

NatWest's Death March To Self Destruction

As we enter day 7 of NatWest's technical meltdown and its death march to self destruction, the hapless and hopeless bank has warned its 17 million customers that the problems may well last for a few more days.

Neither the customers nor the financial regulators are particularity impressed with NatWest's handling of this. Andrew Tyrie, the chairman of the Commons Treasury select committee, is quoted by the Telegraph:

 “It seems scarcely credible that something like this, which has caused problems for hundreds of thousands of people, could have gone on for so long. No doubt the committee will want a full explanation.” 

Still there is good news for the shareholders. The glitch has meant that the capital reserves of NatWest have been boosted and, even better, the bank made some short term profits by providing customers with an 0845 number (ie one that costs the customers money) to ring to complain (NatWest have relented and now provide a free number and will reimburse the costs of the calls).

All in all a shambles by anyone's standards!

NatWest Apologises

NatWest sent the following email to its customers this morning at 03:36:

"Dear *****,

We apologise to all of our customers who have been affected by our current technical issues. These resulted in money credited to customers accounts overnight not appearing in their balances as it should. This problem is strictly of a technical nature, we have fixed the initial problem and our priority has been to work round the clock to sort the backlog as soon as possible.

We appreciate this has caused an unacceptable level of inconvenience, and to help you we have over 900 of our branches extending their opening hours today until 6pm. Branches will also be open on Sunday 24th June from 9am to 12noon. Staff in our branches are ready and available to answer any customer questions and help with emergency needs.

Or, please call us at 08457 888 444.

Alternatively, for the latest information and answers to common questions please visit natwest.com

Yours sincerely,


Chris Popple
Managing Director Digital"

Stephen Hester (RBS CEO) has also issued a public apology on the NatWest website:

"Message to Customers from Stephen Hester RBS Group Chief Executive The problems of the past few days have caused disruption and inconvenience for our customers as well as for many customers of other banks. 

I am very sorry for the difficulties people are experiencing. Our customers rely on us day in and day out to get things right, and on this occasion we have let them down. This should not have happened.

Right now my top priority, and the priority of the entire RBS Group, is to fix these problems and put things right for our customers. 

This is taking time, but I want to reassure people that we are working around the clock to resolve these problems as quickly as we are able.

I also want to be clear that where our customers are facing hardship or difficulty we can and will help them. Our staff have already helped thousands of customers to access cash and we will continue to provide this service on a 24 hour basis while we work to resolve the problems. 

I also want to reassure customers that no one will be left permanently out of pocket as a result of this, and again, they should contact us directly about this.

We have doubled the usual number of staff in our call centres, and for the first time ever we will open 1,200 branches across the country on a Sunday from 9am to 12pm. 

Once again I am very sorry for the inconvenience."

There are still problems with some accounts, I for one could not draw any money out of an ATM yesterday afternoon (even though my account is in credit, the ATM told me there was insufficient funds in my account).

NatWest Technical Glitch - Day Three

NatWest and its hapless customers are having to endure a third day of technical problems with its online banking services. The problems are also affecting RBS and Ulster Bank.

The BBC reports that approximately 1,000 NatWest branches opened early today to help customers who are still unable to access their accounts because of technical problems.

NatWest said:

"Unfortunately we are once again experiencing technical issues with our systems and account balances have not updated properly overnight. 

This means where money has gone into a customer's account, there may be a delay in it appearing on their balance.

We can assure our customers that this problem is strictly of a technical nature and we continue to work hard to resolve this."

The Financial Ombudsman has advised what customers' rights are:

• Anyone out of pocket owing to a technical or systems failure has certain rights
• Banks should put customers back into the position they were in had the problem not occurred
• That does not mean extra compensation is a right
• Anyone affected should let the bank know about their situation as soon as possible
• Customers should check to see if any payments due from an account have bounced
• They should also keep a record of how the problem has affected them - just in case a formal complaint is required later

My advice to NatWest is simple, turn the system off and then on again!

RBS and Fred Goodwin Sued For £2.4BN

An RBS Action Group has been set up by 7,400 private shareholders and 80 institutional ones (including NatWest Stockbrokers - part of RBS) to sue Royal Bank of Scotland (RBS) and its former directors including ex CEO Fred Goodwin for £2.4BN.

The claim states that RBS misled investors in the prospectus for its £12BN rights issue to fund the takeover of the Dutch bank ABN Amro.

Mike Neill, chairman of the action group, is also less than impressed with the FSA whitewash of the sorry affair (as is everyone else!).