Barclays banking outage compensation: How to reclaim your money or switch bank, according to experts
If you're a Barclays customer seeking compensation after IT system failure, here’s how you can claim it, according to MoneySavingExpert.
The service outage, which began on Friday, January 31, left many customers unable to access their accounts, make or receive payments, causing significant financial disruptions. Some were even unable to meet critical deadlines, including self-assessment tax payments due on the same day.
Barclays confirmed on Monday, February 3, that the issue had been resolved, with delayed payments now processed. However, it acknowledged that it is still working to bring balances up to date and address outstanding issues.
MoneySavingExpert has advised those who incurred additional costs- such as overdraft fees, late payment charges, or penalties for missed tax deadlines - to take the following steps to reclaim their money:
Gather evidence
Keep records of any financial losses caused by the outage, including screenshots, emails, letters, or receipts. This will help when making a compensation request.
Contact Barclays directly
Barclays has stated that it will ensure “no impacted customer is left out of pocket.” If you’ve not been contacted by the bank, reach out to them by phone at 0345 600 2323, via the Barclays app, or through social media.
Request reimbursement for missed tax payments
Customers who missed the January 31 tax deadline due to the outage will not be reimbursed by HMRC, as its services were functioning. Instead, Barclays is expected to cover the cost of penalties and interest charges, which currently stand at 7.25% for late payments.
Ask for additional compensation
While Barclays has not confirmed whether it will offer goodwill payments, affected customers can request compensation for stress and inconvenience caused by the disruption.
Raise a formal complaint
If Barclays refuses to compensate you, you can file a complaint through its official complaints process.
Escalate to the Financial Ombudsman Service
If Barclays does not respond within eight weeks, or if you are unhappy with its response, you can escalate the case to the Financial Ombudsman Service. This independent body has the power to order Barclays to pay compensation if it finds in favour of the customer.
For those dissatisfied with Barclays’ handling of the outage, MoneySavingExpert suggests that switching to another bank could be an option. Currently, four banks are offering cash incentives of up to £175 for switching:
- First Direct – £175 bonus, 7% savings account, and fee-free overseas spending.
- Nationwide FlexDirect – £175 bonus, 5% interest on balances up to £1,500, and 1% cashback for 12 months.
- Santander Edge – £150 bonus, 6% savings account, and 1% cashback on bills (offer ends February 5).
- TSB Spend & Save – £100 bonus plus £10 monthly cashback for six months.
A Barclays spokesperson previously apologised for the disruption, saying: “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. We will ensure that no impacted customer is left out of pocket.”