Barclays Outage Compensation: Who Gets Paid and How to Claim [2024-25 Guide]

Learn about the Barclays compensation payout following recent outages. Discover who is eligible, how to claim for losses, and what to do if your claim is denied. Get details on Barclays issues, the Barclays app, and how to contact Barclays bank for compensation.

Summary: Barclays is set to pay out between £10m and £12.5m in compensation following a series of technical outages, most notably one at the end of January that lasted several days. The outages left numerous customers unable to access their funds, pay bills, or receive payments, causing significant distress and financial hardship. Affected customers may receive automatic refunds or be contacted by Barclays for further information. Those who incurred financial losses can also make claims for reimbursement and potential compensation.

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Barclays to Compensate Millions After Major Outages

Barclays bank is facing scrutiny and taking action after a series of technical disruptions that significantly impacted its customers. The bank has announced it will allocate between £10m and £12.5m to compensate those affected by these outages, which occurred between January 2023 and February 2024. The most recent and severe incident, lasting from January 31st to February 2nd, saw over half of online payment attempts fail, coinciding with payday and the self-assessment tax deadline.

The Impact of Recent Barclays Issues

The January outage caused widespread disruption, leaving many customers unable to access their wages or make essential payments. This resulted in:

Missed Bill Payments: Customers were unable to pay bills on time, incurring late fees and interest charges.
Tax Deadline Issues: Many missed the self-assessment tax deadline, potentially facing penalties from HMRC.
Financial Distress: The inability to access funds caused significant stress and anxiety for affected individuals.
Barclays app disruptions: Many users were unable to use the app to access their funds.

Who Qualifies for Barclays Compensation?

Barclays has stated that customers who suffered financial losses or significant inconvenience due to the outages are eligible for compensation. This includes:

Individuals unable to access their wages during the January outage.
Those who incurred late fees or interest charges due to payment delays.
Customers who experienced emotional distress or significant inconvenience.

Barclays has confirmed that it is proactively identifying affected customers and will, in some cases, issue automatic refunds. For others, they may proactively contact the customer to gather more information.

How to Claim Compensation from Barclays Bank

If you believe you are entitled to compensation, follow these steps:

1. Gather Evidence:

Keep detailed records of all financial losses, including late fees, interest charges, and any other expenses incurred.
Take screenshots of error messages or failed transactions from the Barclays app or online banking.
Save any relevant emails, letters, or receipts.

2. Contact Barclays Directly:

If you haven’t been contacted by Barclays or received an automatic refund, reach out to their customer service.
Explain the impact the outage had on you and provide evidence of your losses.
You can contact Barclays by phone on 0345 600 2323.
You can also contact Barclays via its app or social media.

3. Document Your Claim:

Action	Description
Keep a record of all interactions	Note down dates, times, and names of customer service representatives you speak with.
Retain copies of all correspondence	Keep copies of emails, letters, and any other communication related to your claim.
Compile financial evidence	Organize receipts, bank statements, and other documents that prove your losses.

4. Escalate if Necessary:

If your initial claim is denied, file a formal complaint with Barclays.
If you are still dissatisfied with the outcome, escalate your complaint to the Financial Ombudsman Service.

Potential Compensation and Further Actions

While Barclays has committed to reimbursing financial losses, customers may also be eligible for compensation for distress and inconvenience. Each case will be reviewed individually, and Barclays will consider all options to resolve the issue.

What to do if your claim is rejected:

If your claim is denied by Barclays, you have the right to escalate your complaint.

Formal Complaint: Follow Barclays’ official complaints process.
Financial Ombudsman Service: If Barclays fails to respond within eight weeks or if you are unhappy with their response, you can escalate your complaint to the Financial Ombudsman Service.

By following these steps, affected customers can ensure they receive the compensation they deserve for the disruptions caused by the Barclays outages.

Barclays Banking App Outage Compensation: Understanding the Impact and Your Entitlements

In today’s digital age, the reliability of banking apps and online services is paramount. Recent reports, however, paint a concerning picture of frequent IT outages across major UK banks, with Barclays facing significant scrutiny. The Treasury Committee’s findings have brought to light the severe consequences of these disruptions, particularly the Barclays banking app outage, and the resulting compensation implications.

This article delves into the details of these outages, the potential compensation you might be entitled to, and the broader context of IT failures in the banking sector.

barclays banking outage compensation

The Scale of Banking IT Outages: A Month of Disruption

The Treasury Committee’s investigation revealed a staggering 803 hours of IT outages across nine major UK banks over the past two years. This equates to more than a month of disrupted services, highlighting a systemic issue within the banking industry.

Key Findings:
- 158 incidents affected millions of customers.
- Banks included Barclays, HSBC, Lloyds, Nationwide, Santander, NatWest, Danske Bank, Bank of Ireland, and Allied Irish Bank.
- The data excludes the recent Barclays and Lloyds outages, which occurred during critical payday periods.
- The total hours of outages shows a severe and ongoing problem for customers.

The sheer volume of these outages underscores the vulnerability of modern banking systems and the significant impact on customers’ daily lives.

Barclays’ January Outage: A Case Study in Disruption

The Barclays outage in January was particularly severe, leaving many customers unable to access their accounts, make payments, or manage their finances. This disruption occurred during a critical period, coinciding with payday and the HMRC self-assessment tax return deadline, exacerbating the impact.

Barclays Banking App Outage Compensation

Impact on Customers

Payment Failures: Barclays reported that over 56% of online payments failed during the first day of the outage due to “severe degradation” of their system’s performance.
Personal Hardship: The outage left some customers, like Emily McAllister and her family, facing significant hardship. Emily and her family were displaced from their home move due to the outage.
The personal stories of hardship highlight the real world impact that these outages cause.

Compensation Expectations

Barclays has indicated that it expects to pay between £5 million and £7.5 million in compensation for “inconvenience or distress” caused by these outages. When factoring in all compensation amounts, this figure could reach £12.5 million.

Compensation Breakdown:
- Expected payout: £5 million to £7.5 million (inconvenience/distress).
- Total potential compensation: up to £12.5 million.
- Compared to other banks, Barclays compensation figures are substantially higher.
- Bank of Ireland paid out £350,000.

Other Banks and Their Compensation

While Barclays faces the largest potential payout, other banks have also compensated customers for IT failures. Here’s a breakdown of the compensation amounts paid by other institutions:

Bank	Compensation Paid
AIB	£590
HSBC	£232,697
Lloyds	£160,000
Nationwide	£77,452
NatWest	£348,000
Santander	£17,000
Bank of Ireland	£350,000

Why Do Banking Apps and Websites Go Down?

Understanding the reasons behind these outages is crucial. Several factors contribute to IT failures in the banking sector:

Legacy Systems

Many banks rely on outdated legacy systems that struggle to handle the increasing volume of digital transactions.
These systems are often complex and difficult to update, making them prone to errors.
Legacy systems are a major contributing factor to bank IT failures.

Software Issues

Software glitches and bugs can cause system crashes and disruptions.
Even minor errors in complex software can have significant consequences.
Barclays itself reported that the January outage was due to a software problem.

Increased Digital Demand

The growing reliance on digital banking services has placed immense pressure on banks’ IT infrastructure.
Increased traffic and transaction volumes can overwhelm systems, leading to outages.

Lack of Investment

Some experts argue that banks have not invested enough in modernizing their IT infrastructure.
This lack of investment can lead to outdated systems and increased vulnerability to failures.
The lack of investment in modernizing infrastructure is a major concern.

Third-Party Suppliers.

The treasury is working to regulate third party suppliers, as they are a source of many problems.
Many banks use outside companies for parts of their IT infrastructure.

What to Do If Your Banking App Experiences an Outage

If you find yourself affected by a banking app outage, here are some steps you can take:

Stay Informed

Monitor the bank’s official website and social media channels for updates.
Check news outlets for information on the outage.

Contact Your Bank

Contact your bank’s customer service via phone or alternative channels.
Document any financial losses or inconveniences caused by the outage.

Keep Records

Keep records of any communication with the bank, including emails and phone calls.
Save screenshots of error messages or other evidence of the outage.

Seek Compensation

If you’ve suffered financial losses or significant inconvenience, inquire about compensation.
Follow the bank’s official compensation process.

Consider Alternative Payment Methods

If possible, have access to alternative payment methods during outages.
This could include cash, or other bank accounts.

The Role of Regulation and Oversight

The Treasury Committee’s investigation highlights the need for stronger regulation and oversight of the banking sector’s IT infrastructure.

Regulatory Measures

The Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) play a crucial role in ensuring banks maintain robust IT systems.
Increased scrutiny and stricter regulations can help prevent future outages.
Stronger regulation is needed to prevent future outages.

Investment in Infrastructure

Banks need to prioritize investment in modernizing their IT infrastructure.
This includes upgrading legacy systems, improving cybersecurity, and enhancing capacity.

Transparency and Communication

Banks should be transparent about IT outages and provide timely updates to customers.
Clear communication can help mitigate customer anxiety and frustration.

Customer Trust and the Impact of Outages

IT outages can severely erode customer trust in banking institutions.

Erosion of Trust

Frequent outages can lead to a loss of confidence in the reliability of banking services.
Customers may seek alternative banking providers perceived as more reliable.

Financial and Personal Impact

Outages can cause significant financial and personal hardship, especially for those living paycheck to paycheck.
The inability to access funds or make payments can lead to missed bills, late fees, and other financial consequences.
The impact of outages can be devastating to individuals and families.

Future Outlook

The Treasury Committee’s findings have put pressure on banks to address their IT vulnerabilities.

Industry Response

Banks are expected to invest in improving their IT infrastructure and resilience.
Increased focus on cybersecurity and disaster recovery planning is essential.

Technological Advancements

Adopting cloud-based solutions and other modern technologies can enhance system reliability.
Investing in artificial intelligence and machine learning can help detect and prevent potential issues.

Customer Empowerment

Customers are becoming more aware of their rights and demanding better service from their banks.
Increased awareness and advocacy can drive positive change in the industry.

FAQs: Barclays Banking App Outage Compensation

Q: How much compensation could Barclays pay for the recent outages?

A: Barclays could pay up to £12.5 million in compensation, including amounts for inconvenience and distress.

Q: What caused the Barclays outage in January?

A: The outage was caused by a software problem with Barclays’ system, not a cyber-attack.

Q: How can I claim compensation from Barclays?

A: Contact Barclays’ customer service and follow their official compensation process. Keep records of any financial losses

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