Feeds

Did a date calculation bug just cost hard-up Co-op Bank £110m?

And just when Brit banking org needs £400m to stay afloat

Bridging the IT gap between rising business demands and ageing tools

A programming blunder appears to have landed the cash-strapped Co-op Bank an unexpected bill for £110m.

In its financial report [PDF] for 2013, which last week revealed a £1.3bn loss, the bank said it had to stump up nine-figure "costs relating to breaches of the Consumer Credit Act".

Specifically, the scandal-hit bank noted: "Interest refunds relating to technical compliance with the Consumer Credit Act have also been provided for (£110m)."

The bank did not explain exactly how it fell foul of the law, but with a little digging, we uncovered this Grocer report from March: it claims that loan statements to a group of customers were sent out late – specifically, 368 days after the previous annual statements rather than the 365 days specified by the Consumer Credit Act.

That gaffe meant the bank had to pay back all the interest on that batch of loans as a result of not following the letter of the law.

The three-day delay in sending out the statements was allegedly the fault of a software developer who got his or her sums wrong, according to the Grocer. The bank did not comment when asked by The Reg to confirm whether or not a coding error had led to the cock-up.

Following the publication of its full-year report, it's feared the Co-op Bank could go bust within months if it does not raise £400m to shore up its finances. ®

Seven Steps to Software Security

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.