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TSB to be probed by FCA over handling of the bank’s ongoing IT problems

The lender, which was bought in 2015 by Spanish bank Sabadell, had a major IT problem last month affecting its 1.9mln online customers
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UK lawmakers have criticised TSB boss Paul Pester - who faces them today - over the handling of the situation

TSB is to be probed by the Financial Conduct Authority (FCA) over the banking group’s response to the handling of its ongoing IT problems, media reports have said.

The lender, which was bought in 2015 by Spanish bank Sabadell, had a major IT problem last month affecting its 1.9mln online customers that followed migration of its computer systems to a new platform developed by its parent.

READ: TSB refused help from former owner Lloyds in IT system crash

On Wednesday, Reuters reported, UK lawmaker’s criticised TSB boss Paul Pester over the situation and made public a letter from the FCA’s chief executive, Andrew Bailey to members of the Treasury Select Committee revealing the investigation.

Pester is due to testify before the Treasury committee later on Wednesday about how the bank is handling the crisis, which has left thousands of customers unable to make vital payments, while others have had accounts emptied by fraudsters taking advantage of the disarray.

He previously worked at TSB’s previous owner, Lloyds Banking Group PLC (LON:LLOY) on a project to separate the business in 2014 prior to a short-lived flotation of the business before it was snapped up by the Spanish.

A report last month said TSB had declined an offer from its former owner to help sort out the IT crash.

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