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Tesco scrap popular customer service as supermarket’s banking arm to close later this year

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Original article from Kent Live

Tesco has announced it will be closing its banking arm later this year.

Customers are set to face a long wait to switch accounts after the supermarket temporarily blocked the switching process.

This was due to the volume of requests they received through the Current Account Switch Service.

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Tesco told its customers that it would be suspending the choice to switch to another bank account because of the huge influx of requests, as BirminghamLive reports.

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Despite the process currently being suspended, some people's requests to switch bank accounts have been rejected.

Tesco has since confirmed it would be contacting people who were rejected to inform them when there will be more capacity.

A spokesperson for Tesco Bank said: "Since we announced our current accounts are closing, we’ve received a high demand for current account switches, leading to delays for some customers.

"We’re contacting all customers affected to apologise for this temporary issue."

A spokesperson for the Current Account Switch Service said: "We are working closely with Tesco Bank as it seeks to resolve the issues some of its customers have had as they try to switch to new current accounts."

It was announced last month (July) that Tesco Bank would close all of its 213,000 current accounts on November 30, and would no longer accept applications for current accounts in 2019.

Tesco said it had found just 12 per cent of accounts open were being used as a customer's primary account since offering the service in 2014.

The supermarket's banking arm has more than five million customers and offers a range of products including credit cards, loans and insurance products.

It said the closure of the current account "supports Tesco Bank's strategy of focusing on products and services that best meet the needs of Tesco shoppers".

The bank's chief executive Gerry Mallon at the time said: "The way customers shop and manage their money is constantly evolving and we are committed to developing products and services which align with the needs of Tesco shoppers.

"With so few of our current account customers using it as their primary account we want to support them to find a suitable alternative dependent on their circumstances.

"We will pay particular attention to supporting any vulnerable customers and those in need of financial assistance."

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Original Article