Tesco has been forced to stop customers switching their current accounts after it became overwhelmed by a torrent of requests to change services.
Tesco Bank announced late last month that it would close 213,000 current accounts by the end of November this year, estimating that just 12 per cent of these were used as customers’ main accounts.
In the wake of the announcement, thousands of Tesco Bank current account holders contacted the bank requesting a transfer of their accounts via the Current Account Switching Service (CASS).
READ MORE: Tesco Bank to close all current accounts
Tesco, which launched its banking arm in 2014, struggled to deal with the influx of requests and was forced to temporarily suspend account switching to deal with the backlog.
This caused already unhappy account holders to take to social media to express their anger at their inability to switch accounts.
So @tescobank you close current accounts encourage customers to switch and then cancel the switch through the switching service
— Steve Isley (@sabelu123) August 6, 2021
Very unhappy customer today! Requested current account switch from @tescobankhelp to @AskNationwide only to find out #TescoBank are closing all current accounts anyway and my request was cancelled. I now need to go through the whole process again, which is just not good enough!
— 𝔸𝕟𝕕𝕣𝕖𝕨 𝔾. ℝ𝕠𝕕𝕘𝕖𝕣𝕤 (@AndrewRodgers_) August 9, 2021
“We are working closely with Tesco Bank as they seek to resolve the issues some of their customers have had as they try to switch to new current accounts,” a CASS spokesperson said.
“Those customers will benefit from the Current Account Switch Service guarantee, which means their new bank will switch their payments and transfer the balance, and their old bank will take care of closing the old account.”
Tesco has been phasing out its current accounts since 2019 when it stopped any new accounts from being opened.
Customers will need to switch their accounts before November 30 this year, but will be unable to access some features from October 15.
While the bank’s current accounts will be scrapped, Tesco Bank customers’ credit card, loan, insurance and the majority of savings accounts will remain unaffected.