Tesco Bank’s Proposed Transfer of Services to Barclays Raises Concerns, High Court Informed
Hundreds of individuals have expressed apprehensions regarding Tesco Bank’s plan to transfer some of its services to Barclays Bank, citing concerns related to the situation in Gaza, as revealed in the High Court proceedings.
Tesco Personal Finance (TPF), operating as Tesco Bank and a subsidiary of the supermarket chain, aims to move its credit card, personal loans, savings, and current accounts to Barclays Bank UK (BBUK), impacting approximately 4.1 million accounts. Both banks have sought approval from a High Court judge for this transfer.
During the court session, barristers representing the banks mentioned that while “some customers” have raised concerns about the Gaza situation, over 2,000 emails opposing the scheme from non-TPF customers could be disregarded. Three individuals, including two associated with pro-Palestine organisations, have requested to address the court before a decision is finalised.
Mr. Justice Edwin Johnson is set to decide on allowing these individuals to speak following the submissions. Martin Moore KC, representing TPF and BBUK, highlighted that the court received 2,248 emails opposing the scheme from non-TPF customers, suggesting these could be safely ignored.
Moreover, Moore stated that out of the total customers, only 562 objections and 75 complaints had been raised, constituting 0.014% of the customer base. Concerns raised by some customers regarding Barclays’ wider activities and their views on Gaza were cited, but Moore contended that these were not grounds for opting out of the transfer.
He emphasised that the court’s focus should be on the transfer’s impact on customers in general, rather than individual opinions or sympathies. Moore clarified that the deal involves BBUK continuing the business under the Tesco Bank brand for a minimum of 10 years and entering a strategic partnership with Tesco from November 1, with no significant changes to product terms expected.
While no staff will switch to BBUK as part of the scheme, it is anticipated that roughly 2,523 employees across the UK and India may eventually relocate. TPF will retain its insurance and money services operations such as ATMs, travel money, and gift cards.
Outside the Rolls Building in London, protesters gathered with banners reading “Stop Arming Israel” prior to the hearing’s conclusion later in the day.