Lloyds, Halifax & Bank of Scotland glitch – you could be due £40+ compensation

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If you bank with Lloyds Banking Group, Halifax or Bank of Scotland, you may be owed compensation after a recent mobile banking error.

Earlier this month, a major app glitch caused some customers to see other people’s transactions in their banking app – raising serious privacy concerns.

The good news? Thousands of users have already been paid around £40 each as a goodwill gesture.

Here’s what you need to know 👇

What actually happened?

On 12 March 2026, a faulty app update led to a data mix-up affecting hundreds of thousands of accounts.

• Some users were shown transactions from other people’s accounts

• Others had their own transactions visible to strangers

• In some cases, extra details (like sort codes or account info) may have been exposed

Importantly:

• Only current accounts were affected

• No money was taken and balances weren’t impacted

• No confirmed fraud has been reported so far

Still, it’s a big deal when banking data is involved.

How much compensation are people getting?

So far:

• Over £139,000 has been paid out

• Around 3,600+ customers compensated

• Average payout: ~£40 per person

These are classed as “goodwill payments” for distress or inconvenience – not automatic refunds.

How to check if you were affected

Step 1: Open your banking app and look for any alerts or messages.

Step 2: Think back – did anything look unusual around mid-March?

Step 3: If you took screenshots or noticed strange transactions, that’s useful evidence.

If you’re unsure, it’s still worth checking directly with your bank.

How to claim compensation

If you think you were impacted, here’s the simple process:

Step 1: Contact your bank (Lloyds, Halifax or Bank of Scotland).
Explain what happened and how it affected you.

Step 2: Be clear about the impact:

• Were you unable to use your account properly?

• Did it cause worry or stress?

• Did you suffer any financial loss?

Step 3: If you’re not happy with the response, raise a formal complaint.

Step 4: Still stuck? Escalate to the Financial Ombudsman Service (free to use).

Worried about your data? Do this

Even though no fraud has been confirmed, it’s smart to stay cautious:

• Check your accounts for unusual activity

• Change your banking passwords (and avoid reusing them)

• Be extra careful of scam texts or emails pretending to be your bank

👉 Big one: Never click links in messages claiming to be from your bank – always go directly to the official app or website.

Can you take it further?

If you’re concerned about how your data was handled, you can also contact the Information Commissioner's Office.

They won’t award compensation, but they can investigate and take action if rules were broken.

Is it worth claiming?

Honestly? Yes.

Even if you didn’t lose money, banks often pay out for:

• Stress or inconvenience

• Loss of access to services

• Data privacy concerns

And as we’ve seen, £40+ payouts are already happening.

My Side Gig take

This is a classic example of “hidden free money” most people miss.

Banks won’t always advertise compensation – but if something goes wrong and affects you, there’s often money on the table.

👉 If you use any of these apps, it’s definitely worth checking.