Protecting yourself from banking tech glitches

IT issues at banks are almost bound to happen from time to time and when they do, they can leave you in a tough spot if they result in missed payments.

But there are steps you can take to minimise any inconvenience.

Recent banking glitches: what happened?

In the last few days, many customers of Lloyds Banking Group, which includes Halifax, experienced payment problems due to IT glitches.

The issues came right after Barclays had its own IT outage, causing disruption for many customers trying to make essential transactions. It hit at an especially difficult time - the deadline for self-assessment tax bills for some and payday for others. The problems meant people were unsure whether money had left or arrived in their accounts.

The bank acted swiftly, extending its call centre hours over the weekend and contacting vulnerable customers to offer additional support.

On Sunday, it confirmed that the issue had been resolved.

Banks will always work hard to sort IT issues as quickly as possible. But while they’re doing that, there are steps you can take to reduce the likelihood of potential problems.

What you can do right now

• Check your accounts - first thing’s first, log into your account and double-check your balance. Make sure everything looks right.
• Be careful with payments – think twice before resending payments. Sending the same payment multiple times could result in overdraft fees.
• Talk to your bank - if the glitch has impacted your finances, contact your bank straight away. Let them know what’s going on so they can help you out.

Can you get compensation?

Unlike telecom companies, banks aren’t legally required to compensate customers for outages. However, Barclays has made it clear they’ll ensure no one is left financially disadvantaged by this issue.

If you’ve missed payments and are worried about your credit rating, keep a record of what happened and file a formal complaint with the bank.

If you’re unhappy about how the issue was handled, contact the financial ombudsmen service for free on 0800 023 4567.

Watch out for fraud

Unfortunately, fraudsters often try to take advantage of events like IT outages. Be extra vigilant and wary of unsolicited calls, texts or emails that claim to be from your bank.

How to prepare for future outages

There are other steps you can take to minimise the impact if something like this happens again:

• Have multiple ways to login – if one part of the system is down, having alternative ways to access your account could save you time and frustration. For example, using the banking app if the website is unavailable.
• Spread your money around - if you have multiple accounts with different providers, it gives you more options if something goes wrong with one of them.
• Apply for a prepaid debit card - prepaid cards can be a lifesaver during banking outages as you can load money onto them in advance. Plus, they can help you stick to a budget and avoid overspending.
• Separate accounts - having separate accounts from your partner can provide an extra layer of security during banking issues. If you can’t access one, the other might still be fine.

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