Tesco Bank has been granted approval by a High Court judge to transfer certain services to Barclays bank, despite objections from customers and pro-Palestine protesters. The transfer will see Tesco Personal Finance (TPF) move its credit card, personal loans, savings, and current accounts to Barclays Bank UK (BBUK) on November 1, impacting approximately 4.1 million accounts.
During a court hearing, objections were raised by two TPF customers and pro-Palestine groups, with some protesters blocked from addressing the court by Justice Edwin Johnson. The judge ruled that these objections were not relevant to the approval of the transfer and ultimately sanctioned the scheme. It was determined that the transfer would not adversely affect the customers involved.
Martin Moore KC, representing TPF and BBUK, explained that the transfer was a result of Tesco Group’s decision to streamline its banking operations following a strategic review. While there were 562 objections and 75 complaints from customers, representing a small percentage of overall accounts, these concerns were addressed during the hearing.
Some customers raised objections based on Barclays’ wider activities and their stance on the situation in Gaza. However, the court deemed this to be a controversial and non-justiciable issue. The approved scheme entails BBUK operating under the Tesco Bank brand for a minimum of 10 years and forging an exclusive partnership with Tesco.
Under the arrangement, there will be no significant changes to product terms and conditions, but around 4,147,206 accounts will be affected. While no staff will move to BBUK, it is anticipated that approximately 2,523 employees in the UK and India will eventually transfer. TPF will retain its insurance and money services, including ATMs, travel money, and gift cards.
The decision to approve the transfer marks a significant step in the restructuring of Tesco Bank’s operations, paving the way for a new chapter in its partnership with Barclays.