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Nationwide fiasco sees customers' accounts debited twice Nationwide fiasco sees customers' accounts debited twice
(about 2 hours later)
Nationwide customers who made purchases using their Visa debit cards on Tuesday and Wednesday this week have had their accounts debited twice – sending many overdrawn – in the latest fiasco at a major financial institution. Nationwide building society has blamed human error for an incident that caused customers using their Visa debit cards to be charged twice – sending many overdrawn – in the latest fiasco at a major financial institution.
Customers of the building society – which has around 4 million current account holders and has been a popular destination for those switching away from the big banks – only became aware this morning when they found their cards rejected when making a purchase. Those calling the building society have been told that the problem affects those who made Visa debit card purchases on Tuesday and Wednesday of this week (24 and 25 July). Affected customers have had the correct money taken from their account, but twice over. Customers of the building society – which has around 4 million current account holders and has been a popular destination for those switching away from the big banks – who made payments on 24 July were debited a second time for them on 25 July. Most only became aware this morning when they found their cards rejected when making a purchase. Nationwide reportedly became aware of the problem on Wednesday night, but appears to have done nothing to warn customers – many of whom no longer have access to their funds because the double payments have sent them overdrawn.
Nationwide reportedly became aware of the problem on Wednesday night, but appears to have done nothing to warn customers – many of whom no longer have access to their funds because the double payments have sent them overdrawn. Nationwide said that the incident was down to "human error" but would not elaborate on that or say how many customers had been affected.
The building society's customers have been bombarding the building society with complaints via the building society's @AskNationwide Twitter account in the last few hours. "Debit transactions made on the 24 July have been taken again on the 25," said a spokeswoman. "This is a one off incident that is down to human error. Duplicated transactions will all be corrected overnight. We want to offer our sincere apologies to customers and assure them that they will be reimbursed for any additional costs or charges that they have incurred."
Alfrey Johns, who lives on the Isle of Sheppey in Kent is one of those affected. She tried to use her card on Thursday morning but was turned away by the store as her payment was rejected.
She said: "We live in a rural area and I have just driven into town to do some shopping and then go out with my children who are on holiday. I have been humiliated in the shop because my card was refused as the double payments have sent me overdrawn.
"I've been told that I won't be charged any penalties but to say I'm furious doesn't cover it. I won't get our petrol costs back or compensation for the fact that our whole day is ruined – all because of yet another banking industry screw up," she said.
The building society's customers have been bombarding it with complaints via the building society's @AskNationwide Twitter account in the last few hours.
One, Kelvin, said: "How do we sort this double payment mishap? I've been [sic] nearly £800 taken when should of been £400! That's alot of money."One, Kelvin, said: "How do we sort this double payment mishap? I've been [sic] nearly £800 taken when should of been £400! That's alot of money."
Another, Pete Robinson, said: "My nationwide account on line this morning: £56 tesco debited on the 24th same £56 tesco debited on 26th. Cheers."Another, Pete Robinson, said: "My nationwide account on line this morning: £56 tesco debited on the 24th same £56 tesco debited on 26th. Cheers."
The building society is responding on Twitter with one line, stating that "an issue with debit card transactions is affecting some customers. Sorry, account will be corrected ASAP."The building society is responding on Twitter with one line, stating that "an issue with debit card transactions is affecting some customers. Sorry, account will be corrected ASAP."
Visa, which operates Nationwide's debit cards, said in a statement that all of its systems "have been and are working correctly".
Nationwide's problem, albeit on a smaller scale, follows the Royal Bank of Scotland computer fiasco last month that saw millions unable to access their funds.Nationwide's problem, albeit on a smaller scale, follows the Royal Bank of Scotland computer fiasco last month that saw millions unable to access their funds.
Alfrey Johns, who lives on the Isle of Sheppey in Kent is one of those affected. She tried to use her card on Thursday morning but was turned away by the store as her payment was rejected. When she called Nationwide to find out why, she was told that it was a Visa problem that affected anyone who'd used their debit card on those dates.
She said: "We live in a rural area and I have just driven into town to do some shopping and then go out with my children who are on holiday. I have been humiliated in the shop because my card was refused as the double payments have sent me overdrawn.
"I've been told that I won't be charged any penalties but to say I'm furious doesn't cover it. I won't get our petrol costs back or compensation for the fact that our whole day is ruined – all because of yet another banking industry screw up," she said.
Nationwide said it was aware of the problem and that it would issue a full statement later.
News of the payments problem will be a big blow to the building society that has a 7% share of the current account market. It has successfully billed itself as being different from the big banks that are at the heart of the financial crisis.News of the payments problem will be a big blow to the building society that has a 7% share of the current account market. It has successfully billed itself as being different from the big banks that are at the heart of the financial crisis.
Following the problems at RBS and then those at Barclays, Nationwide said : "We are already seeing an increase in the numbers of people asking to move to Nationwide from other banks. After recent events we expect those numbers will increase."Following the problems at RBS and then those at Barclays, Nationwide said : "We are already seeing an increase in the numbers of people asking to move to Nationwide from other banks. After recent events we expect those numbers will increase."
On 13 July it reported that the number of people switching their main current account to the society through all channels - branch, telephone and online - each week was up 67% on the period before the RBS issues started.On 13 July it reported that the number of people switching their main current account to the society through all channels - branch, telephone and online - each week was up 67% on the period before the RBS issues started.