Barclays Breaks Silence on Compensation for Customers Locked Out by Online Banking Meltdown

Thousands of Barclays customers were left unable to access their bank accounts after a major online banking failure disrupted services for more than 24 hours. The outage, which began on payday, meant many account holders were unable to check their balances, make payments, or receive incoming funds, leaving them in financial limbo at a crucial time.

The failure affected both the mobile banking app and internet banking services, causing significant frustration for those relying on their accounts to pay bills, transfer funds, or file their self-assessment tax return before the deadline. Customers reported widespread issues, with many unable to see pending transactions, resulting in confusion over whether payments had been processed, delayed, or failed altogether.

The timing of the outage was particularly problematic for self-employed individuals, as 31 January marked the final day for self-assessment tax payments. Those who missed the deadline due to the disruption faced potential late payment fines of £100 or more from HMRC, raising concerns over whether Barclays would compensate affected customers.

As frustration grew, thousands of people took to social media to demand answers, with many criticising Barclays for the lack of communication during the outage. With many left wondering if they would be compensated, Barclays was forced to address the situation and offer reassurances.

Barclays Responds to Widespread Banking Failures

Following growing customer complaints, Barclays issued an apology, acknowledging the technical failure and its impact on customers.

A Barclays spokesperson stated:
“We’re incredibly sorry for the ongoing technical issues that are impacting our customers’ accounts. Some may see an outdated balance, and payments made or received may not show. We’re working hard to fix this issue, and customers should not try to make the payment again.”

While Barclays assured customers that their debit cards and ATMs were still operational, many found this insufficient, especially those needing to send urgent payments. The inability to access accurate balance information caused further problems, with some customers left uncertain over whether standing orders and direct debits had been processed.

Barclays confirmed that once the system was fully restored, affected customers would be informed. The bank also sought to reassure those worried about financial losses, stating:
“Customers can use their cards and withdraw cash, and as soon as these remaining issues are resolved, we’ll let our customers know. We will ensure that no impacted customer is left out of pocket.”

Despite these assurances, frustration remained high, particularly among those facing late payment penalties or overdraft fees as a result of the outage.

Thousands of Customers Report Problems as Frustration Grows

According to DownDetector, more than 5,000 Barclays customers reported issues logging in, with many complaining that they were unable to access funds, confirm transactions, or send payments. Customers who rely on Barclays to receive their salaries were left particularly concerned, as many could not verify whether their wages had been deposited.

A statement on the Barclays website acknowledged the severity of the issue, stating:
“We’re really sorry – we’re still working to fix the issues that started yesterday. This is taking longer than we’d like – thank you for bearing with us.”

Despite these reassurances, customers continued to report ongoing errors, including incorrect balances and missing payments. Barclays warned customers that some payments might not appear on their accounts, stating:
“Some customers may be experiencing issues making payments – we’re working to fix this as soon as we can. Your balance may be incorrect, and some payments you made or are expecting to receive may not show. Please do not make the payments again. Please bear with us while we correct this.”

For many, this warning came too late, as some customers had already attempted to resend transactions, increasing the risk of duplicate payments and overdraft charges.

Can Barclays Customers Claim Compensation?

Unlike telecom providers, banks are not legally required to compensate customers for service outages. However, Barclays has stated that it will ensure no customer is financially disadvantaged as a result of the failure.

While Barclays has not confirmed automatic compensation, affected customers may be able to claim reimbursement if they have:

• Incurred late payment fees due to failed transactions.
• Faced financial penalties, such as HMRC fines for missing tax payment deadlines.
• Suffered credit score damage due to an unprocessed loan or credit card repayment.

To request compensation, Barclays customers should:

1. Gather evidence – Take screenshots of any failed transactions, error messages, and any financial penalties incurred.
2. Contact Barclays directly – Use phone support, online chat, or visit a local branch to report the issue and request reimbursement.
3. File a formal complaint if necessary – Barclays is required to review all customer complaints related to service failures.

What If Barclays Refuses to Compensate Customers?

If Barclays refuses to reimburse affected customers, complaints can be escalated to the Financial Ombudsman Service (FOS). The FOS is an independent body that can assess whether a customer suffered financial loss or distress due to the bank’s failure.

If the FOS rules in favour of the customer, Barclays may be required to:

• Reimburse late fees, fines, or charges.
• Correct credit reports if a customer’s credit score was damaged by a missed payment.
• Compensate for additional expenses, such as extra phone calls or trips to a branch.

Customers must first file a complaint with Barclays, and if they are unsatisfied with the response, they can escalate the issue to the FOS after 15 days.