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

Susievintage

Despite being the one to launch this thread, waaaaay back on 16 July, and writing immediately to Santander and soon after emailing my own MP and Vince Cable, I have yet to hear back from any of them!

But as and when I get any response, I'll post here.

And don't forget to sign the petition - can't believe we've got 22 signatures only so far, with 230,000 accounts affected! We need to show strength of numbers. Here it is: http://www.gopetition.com/petitions/free-banking-with-santander.html

lolly5648

This account is no good for a small sole trader as you need a turnover of £250,000.

Susievintage

lolly5648 wrote: »

This account is no good for a small sole trader as you need a turnover of £250,000.

I think it's up to a maximum of £250,000 - not a limit of that. But do you really want to stay with this bank, when they have shown such disdain for loyal customers?

Susievintage

A delay works just fine for me - if Santander go over their 8-week allowance, it's all to the good.

Victor_Mildrew

[QUOTE=Susievintage;Despite_being_the_one_to_launch_this_thread,_waaaaay_back_on_16_July,__and_writing_immediately_to_Santander_and_soon_after_emailing_my_own_MP__and_Vince_Cable,_I_have_yet_to_hear_back_from_any_of_them![/QUOTE]

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 it's quicker if you phone:)

Malcolm_Foster_2

opinions4u wrote: »

If a bank wishes to charge for a savings account, they can.

I am not too sure about that.
As magpiecottage usefully commented -
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"

I have drawn attention to this in my complaints to the Ombudnman and local MP and if it is relevant in any way, there is a good chance this case could be tested in court. I would not be averse to taking that action - someone has to take a stand. Would Santander want the negative publicity of this and the likelihood that people like me, who have substantial savings with them, clearing their accounts?

As I pointed out in my letter to CEO, Santander, I fully understand them closing this account to new customers, this happens all the time, but not to existing customers. A promise IS a promise. I am hopeful they may consider a u-turn - especially if we can stir up a big enough stink.

Justdesserts

Make no mistake, Malcolm. It WILL be tested in court!!!;)

bell_aire

cashisking1 wrote: »

I have contacted the FSA too and will send richard harris my formal complaint.
By the way, the six years rule in the Limitations Act 1980 for breach of contract is 'six years from the date on which the cause of action accrued'.
If that is seen by a court to mean from when the breach of an express term occurred (now) because the future performance of the contract depended on 'free banking for life' then maybe a claim is possible, if santander assumed all Abbey's obligations, which santander will have to prove they didn't.
Regardless of their terms that they can change everything. A court may agree that they cannot change an 'express' and essential term which made the contract possible in the first place specifically - FREE BANKING FOREVER.
They will also have to prove that reasonable notice was given that the 'free for life' promise was not a fixed promise, which will be tricky.

Would it be possible for someone to put a copy of the original paperwork from Abbey, on a public link say dropbox.

cashisking1

deleted by user

magpiecottage

Malcolm_Foster wrote: »

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"

I have drawn attention to this in my complaints to the Ombudnman and local MP and if it is relevant in any way, there is a good chance this case could be tested in court. I would not be averse to taking that action - someone has to take a stand.

I think it is likely that the Financial Ombudsman Service will feel that it should comply with Lord Denning's judgement - despite not being legally obliged to - because of his status.

It is conceivable that Santander may argue that it raises a significant legal issue and should be taken to court. If so, and the Financial Ombudsman Service agrees, then Santander will have to pay the costs of both sides - win or lose.

As I say, though, I think that is unlikely.