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

MattyMatty

I have just complained to the Ombudsman about this - received the letter from Santander today informing me of the charges. I opened my account based on the promise of free banking forever. This is a sneaky trick.

Having read through this complete thread, my blood is boiling, especially having read this page put together by one of you - the page with the link to the original 2004 welcome letter promising free banking not to mention the link to the current Santander website which still promises free banking forever.

My blood is boiling!!!!!! A huge thanks to the person who supplied the above information. I hope you don't mind me repeating it here.

tinman9898

Matty Matty... The ombudsman doesn't usually act until you have gone through the complaints procedure with Santander first...

Please email [EMAIL="CEO@santander.co.uk"]CEO@santander.co.uk[/EMAIL] . Someone from the CEO complaints team will call you. Advise them you want to make a formal complaint before going to the Ombudsman and FSA. Santander have 8 weeks to resolve the matter. If they don't to your satisfaction ie. withdraw the charges on the 'free forever' account, then make a complaint to the ombudsman etc.

I am trying to find out if it is possible to make/ raise a 'super' complaint action (should the first stage complaints get nowhere) in the county/ sheriff courts (on behalf of everyone affected) about this as[FONT=Times New Roman, serif] Marc Gander, of the Consumer Action Group, is advising that anyone in this position should think about going to the County Court to obtain a judgment that Santander has breached its obligation to treat customers fairly, under the Banking Conduct of Business (BCOB) regulations. "These regulations set a statutory duty on banks to act fairly," Mr Gander says.[/FONT]

Royza

Having just received the fabled letter from Santander, and having read most of this thread, am I right in saying the following 3 options apply?

1) As a partner in a business (in effect two sole traders - not ltd) what's to stop me opening a joint current account and using this for business purposes?

2) Open up a Co-op business account, either the FSB one if the Fed of Small Business benefits are worth the subscription, or the normal one at £3 a month after 18 months free (although they need minimum balance of £1000).

3) Open up an HSBC Business Direct account although cheque limits are very low at 5 a month free and not sure how cash could be paid in without a nearby branch (rural area). Could I just pay cash in to current account at Post Office and Bacs it over?? Can this be done anyway to avoid cash pay in fees?

Any thoughts?

Malcolm_Foster_2

tinman9898 wrote: »

Matty Matty... The ombudsman doesn't usually act until you have gone through the complaints procedure with Santander first...

Please email [EMAIL="CEO@santander.co.uk"]CEO@santander.co.uk[/EMAIL] . Someone from the CEO complaints team will call you. Advise them you want to make a formal complaint before going to the Ombudsman and FSA. Santander have 8 weeks to resolve the matter. If they don't to your satisfaction ie. withdraw the charges on the 'free forever' account, then make a complaint to the ombudsman etc.

I am trying to find out if it is possible to make/ raise a 'super' complaint action (should the first stage complaints get nowhere) in the county/ sheriff courts (on behalf of everyone affected) about this as[FONT=Times New Roman, serif] Marc Gander, of the Consumer Action Group, is advising that anyone in this position should think about going to the County Court to obtain a judgment that Santander has breached its obligation to treat customers fairly, under the Banking Conduct of Business (BCOB) regulations. "These regulations set a statutory duty on banks to act fairly," Mr Gander says.[/FONT]

Thanks for the link to the CEO. Strongly worded, but polite email message sent confirming my telephoned complaint of yesterday following their letter of intent and prior to reading all the similar strength of feeling on this thread. Pure and simple - they have broken their promise to me but I will not break mine to them, ie, All my savings with them (well into 6 figures) will be moved if this is not resolved. I also questioned the legality (breaking of contract) which I stated I would pursue. Will look at Co-op in the meantime.

MattyMatty

tinman9898 wrote: »

Matty Matty... The ombudsman doesn't usually act until you have gone through the complaints procedure with Santander first...[FONT=Times New Roman, serif][/FONT]

The Ombudsman said you can either complain direct to Santander - or ask the Ombudsman to do it for you and copy you in on it. Thereafter it's the same process i.e. Santander must reply within 8 weeks, etc.

magpiecottage

The complaint to Santander/FOS route is the correct one if your business has assets and an annual turnover of less than €2 million (or the Sterling equivalent) and nine or less employees.

Please also protest to your MP that they seem to be permitted to renege on their commitment. I have done this and a letter has now gone (from her office) to Lord Turner, Chairman of the FSA. However, between 230,000 small businesses, it seems likely that most MPs would find themselves being complained to about it.

I did it by e-mail attaching the original letter from Niven, the one from Foale, my complaint and Santander's response.

One thing which does concern me is that Santander, as Abbey National, has "form" when it comes to mishandling complaints. See here. (This is the one for mishandling complaints, not the earlier fine for misselling endowments in the first place!).

Cardew

There is a certain irony that since this thread started on 16 July, Santander shares have risen some 30%!

magpiecottage

Okay - got the links on the website working now!

One thing I have put on is the standard fob off letter.

Once you get yours, complain to FOS but also report the matter to the FSA and your MP as they are clearly going back to their old ways of not bothering to consider complaints properly.

Malcolm_Foster_2

To Magpie (I cannot quote as I am not allowed to duplicate your link provided)

Thanks, but clicking on the link provided just seems to bring me to a page which is no longer available?

magpiecottage

Malcolm_Foster wrote: »

To Magpie (I cannot quote as I am not allowed to duplicate your link provided)

Thanks, but clicking on the link provided just seems to bring me to a page which is no longer available?

Sorry - corrected now.

This explains my argument about a collateral contract. Note the case of Evans & Sons Ltd v Andrea Merzario Ltd in which Lord Denning said "When a person gives a promise, or an assurance to another, intending that he should act on it by entering into a contract, we hold that it is binding"