Concerns over plan to transfer some Tesco Bank services to Barclays, court told
Hundreds of people have raised concerns over the transfer of some of Tesco Bank’s services to the UK arm of Barclays “over the situation in Gaza”, the High Court has been told.
Tesco Personal Finance (TPF), which trades as Tesco Bank and is a subsidiary of the supermarket group, is seeking to transfer its credit card, personal loans, savings and current accounts to Barclays Bank UK (BBUK), affecting around 4.1 million accounts.
The banks have asked a High Court judge to approve the transfer, with its barristers saying that while “some customers” have raised concerns “over the situation in Gaza”, the court could “safely ignore” more than 2,000 emails opposing the scheme “from persons not customers of TPF”.
Three people – including two who said they are affiliated with pro-Palestine organisations – told the judge they wish to address the court in London before a decision is made.
Mr Justice Edwin Johnson will decide whether to allow them to speak later on Thursday.
Martin Moore KC, for TPF and BBUK, said in written submissions that 2,248 emails resulting from an “online campaign” had been received “from persons not customers of TPF” opposing the scheme, which he claimed the court could “safely ignore”.
He said: “Such persons have no relevant interest in the transfer.
“The court should refuse to hear any person who does not have a relationship with the parties and is appearing as a campaigning member of the public.”
Such subjective views, which the court cannot assume are either universally shared or objectively correct, are not appropriate factors to take into account
Mr Moore said there have been 562 “objections” and 75 “complaints” from customers about the scheme, which he said is 0.014% of customers and includes concerns over service standards, information about the scheme and other matters.
He said some customers have claimed “that the transfer should not go ahead, or at least the customer concerned should not be transferred, because of the connection with Barclays’ wider activities and their view of who is responsible for the situation in Gaza”.
But he said this “is a highly controversial subject and not one justiciable before this court”, and it is “not appropriate” to allow customers to opt out of the transfer.
He said: “The court is concerned with the effect of the scheme on customers as a cohort or in general, unaffected by a consideration of their personal proclivities or sympathies.
“Still less is the court concerned with persons who are not currently customers of the parties.”
He continued: “Such subjective views, which the court cannot assume are either universally shared or objectively correct, are not appropriate factors to take into account.
“This would not be an appropriate ground on which to refuse to sanction the scheme.”
Mr Moore said Tesco Group “determined to dispose of its banking operations as non-core to its principal activities” following a “strategic review”, with BBUK agreeing to the transfer in February.
The deal would see BBUK continue to operate the business under the Tesco Bank brand for at least 10 years and enter into a “long-term, exclusive strategic partnership” with Tesco from November 1.
Mr Moore said there would be no “material changes” to product terms and conditions, with around 4,147,206 accounts due to be affected.
While no staff will transfer to BBUK under the scheme, it is “anticipated” that “approximately 2,523 employees across the UK and India” will eventually move.
TPF will retain its insurance and “money services” businesses, including ATMs, travel money and gift cards.
Several protesters appeared outside the Rolls Building in London holding banners and placards which read “Stop Arming Israel” before the hearing, which is due to conclude later on Thursday.