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Payment system problem at Bank of England leaves movers stranded Payment system problem at Bank fixed but movers delayed
(35 minutes later)
House movers have been left stranded after the Bank of England stopped an automated system that transfers billions of pounds between banks. House movers have been delayed after the Bank of England stopped an automated system that transfers billions of pounds between banks.
A technical fault has affected the CHAPS electronic payment system used for same-day transfers. The technical fault, which was fixed by mid afternoon, affected the CHAPS electronic payment system.
The system is used to move large amounts around the financial system.The system is used to move large amounts around the financial system.
It is also used by solicitors at the end of the house-buying process, so some movers have been left stuck because the sale cannot be completed. It is also used by solicitors at the end of the house-buying process, so some movers were stuck for hours because sales could not be completed.
An institution was added to the Bank's system at the weekend, which created a problem when it was restarted on Monday. An institution was added to the Bank's Real-Time Gross Settlement system, which underpins CHAPS, at the weekend.
Some transfers are now being handled manually. That created a problem when it was supposed to restart on Monday. It normally operates between 0600 and 1600 on weekdays.
However, these manual transfers currently do not include the movement of money for house purchases. The system was down until about 1600 but a statement suggested all payments should now be processed by the end of the day.
'Our buyers are on the drive' "To help customers and to ensure payments can be processed today CHAPS is extending its operating times until 1940 BST. Customers are advised to contact their own bank for any queries they may have on their specific payments," said a CHAPS statement.
Among the house movers affected by the system fault is regional manager Laura Baynes, 35, who is buying her first home. She is moving with partner Gregory Trausch and their two dogs, from Horsham to Billingshurst, West Sussex. 'The last thing we expected'
"No-one can say if this is going to happen today. We have boxes everywhere and we are waiting," she said. Among the house movers affected by the system fault was regional manager Laura Baynes, 35, who is buying her first home. She is moving with partner Gregory Trausch and their two dogs, from Horsham to Billingshurst, West Sussex.
"It has taken eight months to get to this point and I am beginning to think I am jinxed." "It has taken eight months to get to this point and I am beginning to think I am jinxed," she said.
Another person affected is Stuart Iles, 46, who is moving with his wife, from Tamworth, Staffordshire, to their new home in Burntwood. Another person affected was Stuart Iles, 46, who is moving with his wife, from Tamworth, Staffordshire, to their new home in Burntwood.
"Our removal firm was here at 8am and we were packed up and ready by noon," he said."Our removal firm was here at 8am and we were packed up and ready by noon," he said.
"But we have been sat on the floor in an empty house for hours.""But we have been sat on the floor in an empty house for hours."
He said he was worried because the removal firm would eventually decide to put the items in storage and the couple would have to find somewhere to stay overnight.
There were three buyers in the chain who were all affected, he said. The sale had already been delayed since Friday.There were three buyers in the chain who were all affected, he said. The sale had already been delayed since Friday.
"Our buyers are sat on the drive in a car with a removals van," he said. "You expect some problems but this was the last thing we expected. "You expect some problems but this was the last thing we expected," he said.
"My 10-year-old can transfer money on a smartphone but the Bank of England system crashes when they carry out an update!""My 10-year-old can transfer money on a smartphone but the Bank of England system crashes when they carry out an update!"
'Reassurance' There are about 5,000 homes bought a day in the UK on average, although Friday is the most popular moving day.
The Bank's Real-Time Gross Settlement system, which underpins the CHAPS system, has been paused while it is being reset. It normally operates between 0600 and 1600 on weekdays.
"We are working to address this issue as quickly as possible, and restart the... system in a controlled manner," said a spokeswoman for the Bank.
"The most important payments are being made manually and we can reassure the public that all payments made today will be processed."
The Bank can extend its opening hours and increase its capacity if necessary, to make all the transfers.
High valueHigh value
Phil Kenworthy, managing director of CHAPS, said: "CHAPS is currently unable to process payments. This is due to the Bank of England temporarily pausing the RTGS settlement system to resolve a technical issue. CHAPS is currently liaising with the Bank of England who are working hard to resolve the issue."
The CHAPS system moves billions of pounds every day between Britain's main banks and building societies. The latest figures show that in 2013 it was used to process an average daily total of 138,000 payments with a combined value of £277bn.The CHAPS system moves billions of pounds every day between Britain's main banks and building societies. The latest figures show that in 2013 it was used to process an average daily total of 138,000 payments with a combined value of £277bn.
It is used to move money around the financial system, mainly for very high-value payments. It is used for short-term lending between financial institutions, foreign exchange and derivative-related payments. In 2012-13 the average payment was £2.1m, but 78% of payments were below £100,000.It is used to move money around the financial system, mainly for very high-value payments. It is used for short-term lending between financial institutions, foreign exchange and derivative-related payments. In 2012-13 the average payment was £2.1m, but 78% of payments were below £100,000.
The highest ever settlement figure in one day was for £446bn on 28 September, 2007, during the early part of the financial crisis.The highest ever settlement figure in one day was for £446bn on 28 September, 2007, during the early part of the financial crisis.
Sometimes it is used by individuals who, for example, want to buy a high-value car and need to make a same-day, guaranteed payment. There is a charge of about £25 or £30 for an individual who wants to use the system, and the payment generally needs to be made by 1500.Sometimes it is used by individuals who, for example, want to buy a high-value car and need to make a same-day, guaranteed payment. There is a charge of about £25 or £30 for an individual who wants to use the system, and the payment generally needs to be made by 1500.
Payments have been transferred manually before, when there have been technical problems with the system.
Jonathan Smithers, vice president of the Law Society, said: "It is critical for solicitors to have access to this system for house sales and purchases and many other commercial transactions that rely on a payments scheme that processes and settles important and time-dependent payments in sterling.Jonathan Smithers, vice president of the Law Society, said: "It is critical for solicitors to have access to this system for house sales and purchases and many other commercial transactions that rely on a payments scheme that processes and settles important and time-dependent payments in sterling.
"We are talking to the relevant bodies to see if we can obtain some understanding of why the system has failed and assurances that this will not occur again.""We are talking to the relevant bodies to see if we can obtain some understanding of why the system has failed and assurances that this will not occur again."
Are you moving house today? Have you experienced payment problems? If you are willing to be interviewed please email haveyoursay@bbc.co.uk with your phone number.Are you moving house today? Have you experienced payment problems? If you are willing to be interviewed please email haveyoursay@bbc.co.uk with your phone number.
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