HSBC forgets to pay everyone before the bank holiday
The last three days of August signal the end of the summer holiday period, with many people looking to take advantage of the last long weekend before Christmas to get away for some bank holiday holidaying. However, for about 275,000 people this could prove difficult as it seems a bank error at HSBC has meant that they simply haven't been paid.
HSBC is Britain's biggest bank and has 16million UK customers, but an IT glitch discovered today means they have failed to transfer hundreds of millions of pounds on pay day. Up to 275,000 people were not paid today and face a cashless Bank Holiday weekend after the bank’s BACS payments system failed.
Of course, being stuck for your bank holiday jolly is one thing, but being unable to pay your mortgage or not having any money at all is quite a serious problem for those affected.
While the fault seems to be confined to HSBC systems, employees who don’t bank with HSBC are still affected. This is because salaries from employers who bank with HSBC were not transferred from HSBC business accounts to the accounts of employees, including those who bank elsewhere.
HSBC could now incur huge costs from the error, both in compensation from customers and victims as well as a fine from Britain's banking regulator the Financial Conduct Authority. There is apparently no question of any kind of foul play, it is just a colossal accident, to rival that of RBS’s failure earlier this year- which led to a record fine of £56 million.
HSBC said, sheepishly: “There has been a fault in the information used to process some payments from HSBC business customers. Approximately 275,000 payments have been affected, including payments to customers of other banks.”
“HSBC apologises for the inconvenience this has caused. We are taking immediate steps to ensure the payments reach beneficiaries as quickly as possible. We will work with other banks to ensure that customers do not lose out as a result of today's problems.”