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

tinman9898

Received a letter today from Santander business complaints team. Basically a standard letter repeating the waffle that the phone line rep and complaints team rep have already told me over the phone. Next stop is to raise a complaint with the Ombudsman and FSA. Ombudsman contact details: 0300 1239 123 - Mon to Fri 8am to 8pm - Sat 9am to 1pm. Email - complaint .info @ finanacial-ombudsman.org.uk - www. financial-ombudsman. org. uk .

Photo of letter:

https: // fbcdn-sphotos-c-a.akamaihd.net/hphotos-ak-ash4/s720x720/431101_10151093683542510_620684306_n.jpg


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gwokka

i havent yet received my letter. i originally took out an A&L account some years ago. ive read through some of the early t&C's and it states that as long as i pay in at least £1000 per month the account is free, otherwise its £5 per month. Presumably this type of account will also be subject to £7.50 charge? has anyone got a similar account and had their letter?

magpiecottage

gwokka wrote: »

i havent yet received my letter. i originally took out an A&L account some years ago. ive read through some of the early t&C's and it states that as long as i pay in at least £1000 per month the account is free, otherwise its £5 per month. Presumably this type of account will also be subject to £7.50 charge? has anyone got a similar account and had their letter?

This is different. Abbey National customers had a letter from a senior manager saying it was free for life.

Blank_Reg

Bobz wrote: »

A friend of mine (who also has a business account with Santander) put in a complaint, and when a customer service person phoned to discuss the letter they mentioned that the charges are to be introduced in November.

This is the first I've heard of a timescale for this - and as they have to give 60 days notice of this the letters will probably start arriving soon.

I'm still waiting for a reply from Santander to my letter of 18th July.

I was also told that November was the planned time for introducing these charges, and that a further letter would be sent to confirm this.

When raising my complaint I also mentioned that I had my letter from May 2009, when Santander took over the Abbey. This was from the then CEO Antonio Horta-Osorio, and contains the words "Rest assured, there will be no changes to your accounts".

I have received the response letter to the complaint, and also intend to raise this with the Onbudsman.

I have sent an e-mail to me local MP, Justin Tomlinson, but have not received any reply in nearly a month !

I, as do many others on here, feel this is a matter of principle, as well as a hit to a small business. Lets hope we can get some response to this issue.

denisiw

I received the letter from Santander telling me that I would have to start paying £7.50/ month for my 'Free Banking Forever' business account, opened in May 2007, on Thursday 16 August. I phoned and complained knowing that it wouldn't do any good. I told the advisor that I would be writing a letter of complaint to the sender of the letter, Mr Foale. She suggested complaining to the FSA too.

It was while I was composing a letter to Mr Foale that I thought I'd have a look on here to see if it had been brought up. I was surprised to find 18 pages about it. I didn't know that this had been going on for so long. Having read through all the posts I'm sending an e-mail to the CEO as well as a letter to Mr Foale. I will also send an e-mail to my MP.

I'm a sole trader who does 99% of his transactions online, so if I do have to start paying for the service I will be moving my account elsewhere.

Denis

tinman9898

Please complain about this to the Financial services Ombudsman and the FSA. Santander have 230,000 business customers with this account, If all of them complain it will cost Santander £500 for each complaint. This may make them reverse there disaster of a PR/ marketing decision to charge exisiting customers for this account.

Ombudsman contact details:
Telephone: 0300 1239 123 - Mon to Fri 8am to 8pm - Sat 9am to 1pm.

Email - complaint.info@finanacial-ombudsman.org.uk

http://www.financial-ombudsman.org.uk/consumer/complaints.htm

I posted an official complaint and paperwork about Santander introducing charges to their free forever business account yesterday. Registered the complaint with the ombudsman by phone this morning and advised that supporting paperwork was on it's way. Ombudsman rep advised that each complaint about this will cost Santander £500, with 230,000 business customers, if they all complain, that is a lot of money.

To get their money back that works out at 5 years worth of monthly fees from each customer. If they start charging they will also lose a large amount of those customers, which will incur more losses. Would it not be easier to keep existing customers by not introducing the fees than recruit new ones?

http://www.financial-ombudsman.org.uk/consumer/complaints.htm

magpiecottage

If you are going to contact your MP please make your full postal address clear in your correspondence. This is necessary because they can only deal with their own constituents.

tinman9898

I have also emailed the following to the FSA... I shall update with any response I receive...

Dear Sir/ Madam,
I am a sole trader operating a small gardening business on my own. I wish to draw your attention to Santander bank introducing charges to their free forever business bank account. I have already submitted a complaint to Santander and the Ombudsman regarding this which, after seeking advice, I believe breaks the terms of the Banking Conduct of Business (BCOB) which states that banks must treat their customers fairly as referred to in this quote below from a BBC news item about the matter:

http://www.bbc.co.uk/news/business-19012945

Marc Gander, of the Consumer Action Group, says anyone in Mr Daniels' position should think about going to the County Court to obtain a judgement 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.

"They are hugely powerful but no-one seems interested in using them."

I believe that Santander have employed the unfair tactic of 'bait and switch' by saying the account will be free forever then, once people have signed up, switching to introducing fees for the account.

I wish to lodge a complaint, about Santander, with the FSA on this matter.



Contact details for the FSA:

http://www.fsa.gov.uk/consumerinformation/consumer_contact

Malcolm_Foster_2

denisiw wrote: »

I received the letter from Santander telling me that I would have to start paying £7.50/ month for my 'Free Banking Forever' business account, opened in May 2007, on Thursday 16 August. I phoned and complained knowing that it wouldn't do any good. I told the advisor that I would be writing a letter of complaint to the sender of the letter, Mr Foale. She suggested complaining to the FSA too.

It was while I was composing a letter to Mr Foale that I thought I'd have a look on here to see if it had been brought up. I was surprised to find 18 pages about it. I didn't know that this had been going on for so long. Having read through all the posts I'm sending an e-mail to the CEO as well as a letter to Mr Foale. I will also send an e-mail to my MP.

I'm a sole trader who does 99% of his transactions online, so if I do have to start paying for the service I will be moving my account elsewhere.

Denis

My experience is the same as yours, ie, I never saw this coming and only came across this forum a few days ago to see it has been going on for a month. Last Thursday I received their letter of intent and immediately rang to complain. Friday I emailed their CEO to confirm this and to condemn their planned action. I received a call from them 15 minutes later saying I would receive a call today which has happened with the outcome I expected.

I could not resist repeating that I was aware the CEO has been given £4million bonus whilst profits have dropped 40%! - as read here, if correct. When the next letter arives, the Ombudsman/woman, FSA and local MP will be contacted with all documentation. A promise is a promise and very likely legally binding if the Lord Denham case quoted elsewhere is anything to go by.

I do hope an action group is formed for strength in numbers in any action as, unlike with the general public, Santander might be underestimating the tenacity of the business community when someone is trying to put one over on them. The new proposed charges could just be the thin end of a very thick wedge.

emulsionking

Who were the supposed 2000 who took this survey and said they were willing to pay a monthly charge it sure as damn was not me.
Also when I first opened this account in 2004 we had interest on credit in the account then, this has been taken away from us since and they make out that it is a new aspect to this account.