MSE News: Santander to charge for 'free' business accounts

expat_mike

Quote from the OFT website -

The Unfair Terms in Consumer Contracts Regulations 1999 protect consumers against unfair standard terms in contracts they make with traders. The OFT, together with certain other bodies, can take legal action to prevent the use of such terms. The UTCCRs can protect consumers from terms that reduce their statutory or common law rights and from terms that seek to impose unfair burdens on the consumer over and above the obligations of ordinary rules of law.

Now whether this applies to banks as well as respectable traders is a moot point but its worth consideration.

EarthBoy

expat_mike wrote: »

Quote from the OFT website -

The Unfair Terms in Consumer Contracts Regulations 1999 protect consumers against unfair standard terms in contracts they make with traders. ....

This won't be any help to business account holders, because businesses are not consumers. Section 3 of these regulations defines consumer:
“consumer” means any natural person who, in contracts covered by these Regulations, is acting for purposes which are outside his trade, business or profession;

http://www.legislation.gov.uk/uksi/1999/2083/contents/made

Barnetbear

Apologies if this has already been posted, I haven't time to read the whole thread.

If you wish to close your account, send a signed, covering letter stating that fact and the account number at Santander and the account number of where you'd like your balance to be sent. (Otherwise they post a cheque.)

Address:

Santander Business Banking
Account Closures
Bridle Rd
Bootle L30 4GB

or fax 0845 607 6300

janusdesign

i'm pretty sure I read in the t&c that if you are a sole trader, you can close the account over the phone - everyone else has to do it in writing... perhaps visiting a branch to do so is an option, I don't know.

however, it would be common sense to transfer the money out yourself before closing the account, rather than leave it in the hands of Santander to do.

cashisking1

deleted by user

Victor_Mildrew

It's all gone "Very Quiet" :huh: I'm now awaiting my Ombudsman's decision. What about the rest of you????

Susievintage

I am at an even earlier stage - I was the person who started this thread, so I had my letter in the very first batch. I immediately sent in my formal complaint, the same day, and am still waiting for a reply (presumably telling me to take a running jump). Until I get that letter - and Santander has eight weeks to supply it - I can't go to the Ombudsman.

My letter was such a masterpiece that Santander is probably working out how they can backtrack elegantly, restore our free banking forever and send us each a Harrods hamper to apologise for the upset. :rotfl:

Victor_Mildrew

Victor_Mildrew wrote: »

I complained by phone(0800 100801) last week & received a standard "tough luck, go to the Ombudsman" letter today. I phoned the Ombudsman (03001239123) today & after several questions (dates, etc.) they gave me a reference number & are sending me an official complaints form. The person I spoke to seemed to have not heard about Santander's proposal.
Watch this space:mad:

Hi Susie,
I only became aware of Santander's proposals via this thread ( I still haven't received my letter informing me of their intentions yet).
When I phoned (Santander on 0800100801) I immediately stated "I intend to take this to the F.O.S. please may I have a complaint reference No." They quoted me the number & the "Get Stuffed" letter arrived within days!
I suggest we all do the same.

JuicyJesus

cashisking1 wrote: »

Yes, you may be right, however (just a thought) as many are sole traders and use the account for personal finance too, after all the account is in the person's name

There is no benefit whatsoever in operating a business account with personal usage too, indeed there are numerous excellent reasons not to, mostly centred around taxation and working out accounts. I refuse to believe that any more than a tiny sliver of business account holders run personal usage through business accounts regularly.

You are right on one point though; if a business is small enough, the FOS will treat a complaint as if it was more on personal terms rather than business terms. Personal customers are considered to be less savvy than business ones and as such are expected to be treated with more leniency.

That's only for the FOS though. I'm not sure the UTCCR applies here though, and the implications if it does would be terrifying as the ability to change a contract of adhesion given proper notice and right to withdraw from the agreement underpins most of the consumer-level agreements people use day to day. Since that, at the end of the day, is what is being discussed here, and is the only specific term that is under dispute - whether Santander can change the terms.

JuicyJesus

Victor_Mildrew wrote: »

I immediately stated "I intend to take this to the F.O.S. please may I have a complaint reference No." They quoted me the number & the "Get Stuffed" letter arrived within days!

I honestly doubt that any complaints handler would simply give you a reference number so you can go to the FOS. What probably happened is they logged a complaint for you and sent out their final response.

Readers: if you wish to complain, fine, but just asking to go to the Ombudsman off the bat will get you laughed at.