TSB chief executive Paul Pester is to face a further grilling from the Treasury Committee More
10 June, 2018, 03:45
Mr Pester has "not been straight" with customers at the bank since its online services were plunged into chaos, it said.
TSB CEO Paul Pester told MPs on the Commons Treasury select committee on Wednesday that 1,300 people had lost money as a result of the recent technical glitch at the bank.
Overall, there have been around 95,000 complaints from customers, with 24,000 people compensated so far - though Dr Pester couldn't say how many of those who had been compensated were happy with the sum they had received or what the average pay-out was.
"We recognize that we still have areas where we need to improve performance for our customers and we do not underestimate these remaining issues", Meddings wrote to the Treasury Select Committee, responding to a letter sent by its chair Nicky Morgan to him earlier on Thursday.
"The committee has lost confidence in his ability to provide a full and frank assessment of the problems at TSB, and to deal with them in the best interests of its customers".
The FCA said TSB's poor levels of service may have affected customers' trust in banking, with Bailey saying: "A more straightforward recognition of what the situation was would have been helpful".
The committee focused their questions on the ability of the bank's fraud line to handle the influx of cases, noting some customers had reported waiting "hours" for help from staff, but Mr Pester said the phone line had cut wait times to two or three minutes. "I ask that the board consider the committee's view as a matter of urgency".
"The important point is that this progress has been achieved under the leadership of Paul Pester, who continues to have the full support of the TSB Board", he said.
Commenting on the correspondence, Morgan said that from the time the IT problems at TSB had begun the bank's public communications had "often been complacent and misleading".
"In this regard, the tone has been set from the top, by your chief executive". 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.
Andrew Bailey, chief executive of the FCA, said that TSB senior managers had responsibility for the situation, even if they did not manage the introduction of the new technology.
Addressing MPs criticism of the bank's inadequate communication after the meltdown, and suggestions that TSB had been misleading, he said: "The board of TSB believes that communications since the migration have been made in good faith, and based on the information available at the time".