Morgan Stanley glitch hits cardholders

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Morgan Stanley glitch hits cardholders

Tash Shifrin

Banking firm Morgan Stanley has confirmed that up to 15,000 UK credit card holders were wrongly charged interest after an IT glitch.

The problem occurred during the process of bringing the bank’s IT services – previously outsourced to Experian – back in-house earlier this month.

A spokesperson said only “a very small proportion” of the bank’s 1.5 million cardholders had been affected by the erroneous interest charges, which appeared on customers’ August statements.

“For the small number of customers that were affected, Morgan Stanley proactively refunded all interest charges. Cardholders will see the refund now on their online statement or in their next paper statement.
 
“At no point were any customers out of pocket. For the customers who paid back in full before the issue had been identified, a refund was posted immediately to the cardholders account as part of the work we did to rectify the problem.”

The rest of the IT insourcing project had gone very smoothly, the spokesperson added.

In April, Morgan Stanley was forced to cancel credit cards after a security breach at MasterCard allowed fraudsters in the US to steal the details of UK customers.

 

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