Bank apologises for card payment delays

CARD MISERY: Lloyds TSB customers in the UAE have had money deducted from accounts for purchases made months ago. (Getty Images)

Lloyds TSB has apologised to customers impacted by a delay in processing a number of debit card transactions in the UAE.

Arabian Business reported on Thursday how an error in Lloyds TSB's credit and debit card process has left its UAE customers out of pocket, after customers learned card charges are being deducted from their accounts months after the original transactions were made.

Purchases made as far back as January are only now being taken from customers’ banks accounts, in some cases pushing them into their overdraft and leaving them short on cash for essential bills.

Apologising to customers, a spokesman for the bank said: "This delay was caused by a small technical problem following the migration of our credit and debit cards to a new card services provider. This issue is unrelated to our new Chip and PIN offering.

"We are processing these transactions and are taking steps to identify any transactions which could have a significant impact on our customers; these customers will be contacted directly by their dedicated relationship manager.

"Lloyds TSB Middle East will not apply charges to any customers who go into an overdraft position as a result of this delay.

"Whilst only a relatively small number of our customers have been affected we would like to assure our customers that Lloyds TSB Middle East staff are working hard to resolve this issue."

A customer service agent with Lloyds TSB also confirmed it has received a string of complaints, but revealed the glitch had only come to light last week.

“We’ve had a lot of queries,” she said. “There is an issue on our side. We were only informed about this last week, that there has been a delay somewhere down the line. Payments that were done in February, March are only just now coming through.”

She revealed the error is thought to trace back to a new card distributor Lloyds TSB signed with last year, and may affect many more customers.

The bank has yet to inform at-risk clients of the potential four-month lag in its card transactions.

Alison Owen, a Dubai-based account holder with Lloyds TSB, discovered an AED1,000 purchase made in August of last year was only taken from her account in March, adding up to a seven month delay.

“Lloyds never contacted me to say the payment was going to be so late, and if I hadn’t had enough money in my account I would have been charged an AED100 fee for going under an AED10,000 balance,” she told Arabian Business. “It’s very difficult to keep track of your account this way.”

Account holder Kelly Cartwright is now faced with tracking back through her bank statements after learning payments she had made in March have only now begun filtering through to her current account.

“We’re charged AED100 a month for the privilege of having an account with Lloyds, and the attitude with this has been ‘just deal with it,’” she said.

“No one has contacted us to confirm what will happen with the outstanding transactions. What happens if I don’t have the cash in my current account when they decide to take it? This could affect my mortgage payments.

“Does that then mean I’ve bounced a payment, which I can be arrested for?”

Customer David Crozier, who found five separate charges adding up to AED5,300 had been deducted from his account two months after the purchases were made, said the problem is made worse because of a week-long time lag in Lloyds TSB internet banking services.

“It takes a week for any of my transactions to show online. It’s ridiculous that you can’t have faster access to your account details,” he said.

“It’s pure chance that I happened to be online and saw the transaction. If we’d been on holiday, my bank account could have been emptied without my realising.”

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READERS' COMMENTS

Banks and Emiratisation
Posted by Adel Al Amiri, Dubai, UAE on Monday 11 May 2009 at 19:24 UAE time


Banks must be blamed for their lackadaisical attitude and customers must equally be blamed for mismanaging and misusing their credit cards, carrying higher credit card balances, being delinquent on their payments and last but not the least, their infantile ridiculous behaviour. About Emaratization, the keyword is and will ever be 'protectionism' irrespective of anyone says overtly or covertly, implicitly or explicitly. The UAE may be a magnet but nothing wrong in reaffirming and reminding all expats that they will remain mere guests. To the skeptics, hasn't the 6 months residency visa confirmed the guest status of expats???

Apologies to customer & double payments to vendors
Posted by Malik Muhammad, Dubai, United Arab Emirates on Monday 11 May 2009 at 14:20 UAE time


I remember year 2006 when I was working for a multinational tele-communication company, the company supplied them some telecommunication system, finally they paid twice the value of actual invoice one by normal payment and one by managerial cheques. really its amazing for a multinational banks to do this blunder mistakes, how they keep their check and balance.

I doubt this is anything to do with Emiratisation
Posted by Mart on Monday 11 May 2009 at 13:53 UAE time


Try getting anything done with an bank in the UK (or any other large organisation) and you'll probably get similar problems. I think this is a problem that pervades all large bureaucracies - staff are often poorly trained, and know that (as there are lots of staff) other people will probably have to deal with sorting out the problems caused by their mistakes.

It requires a cultural shift in the organisation - a commitment to doing things right, and helping customers rather than just turning up to work and putting in some hours to get paid.

Be Careful
Posted by Lester, Dubai, UAE on Monday 11 May 2009 at 10:40 UAE time


Come on people......this issue has got nothing to do with the nationality of the people working there.....Any business is looking to make money at the cost of someone's negligence....Even the banks....It's not a charitable institute.....The people working for banks below middle management are doing their "Jobs".....every bank will do the same thing....Although RAK bank is far more better......
*I bank with ABN Amro, Stan Chart & RAK Bank.

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