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

tinydramaqueen

There are some great comments and responses on this thread. I own a small business and am appalled that Santander think it acceptable to renege on their promise of 'free banking forever'. I've signed the petition at Go Petitions and have just created a Facebook Group - 'Businesses Against Santander Charges' - please join the group and ask your disgruntled friends and colleagues to join too. There's strength in numbers! Thank you.

nxdmsandkaskdjaqd

Has anyone had a reply from the FOS re their complaint?

Susievintage

I have just had this response from my MP - which concerns me slightly, as it seems that our concern about Santander breaching its contract is being highjacked by the bigger question about "can banking ever be really free"? Anyway, here it is:

"As I am sure you are well aware, the issue of free banking has very recently been receiving large amount of media attention. The consumer group Which? has published a report which suggests that some bank customers are having to pay hundreds of pounds in charges, whilst other customers are losing out on just as much money through lost interest. The report overall suggests that it is a myth to think that we are able to enjoy free banking in the UK.

"Given that Santander has now ended their free banking arrangements for existing customers I can well appreciate your frustration!

"It is my understanding that the FSA is currently considering whether regulatory intervention might be needed to insist that banks charge for current accounts, in order to prevent free banking being effectively subsidised by excessive charges.

"My own view is that before any changes are made consumers should be able to clearly see what they are already paying and information should be made easily available to inform consumber about the charges they may be liable to pay. Greater transparency is needed so that banks cannot get away with misleading consumers.

"Please find attached a copy of the letter I have now written to the Chancellor passing on your concerns, I will write to you again when I have received a response and I hope that this will be helpful."

His letter to the Chancellor is in much the same vein - I'll let you know when he lets me know what the Chancellor says in response.

Malcolm_Foster_2

Susievintage wrote: »

I have just had this response from my MP - which concerns me slightly, as it seems that our concern about Santander breaching its contract is being highjacked by the bigger question about "can banking ever be really free"? Anyway, here it is:

"As I am sure you are well aware, the issue of free banking has very recently been receiving large amount of media attention. The consumer group Which? has published a report which suggests that some bank customers are having to pay hundreds of pounds in charges, whilst other customers are losing out on just as much money through lost interest. The report overall suggests that it is a myth to think that we are able to enjoy free banking in the UK.

"Given that Santander has now ended their free banking arrangements for existing customers I can well appreciate your frustration!

"It is my understanding that the FSA is currently considering whether regulatory intervention might be needed to insist that banks charge for current accounts, in order to prevent free banking being effectively subsidised by excessive charges.

"My own view is that before any changes are made consumers should be able to clearly see what they are already paying and information should be made easily available to inform consumber about the charges they may be liable to pay. Greater transparency is needed so that banks cannot get away with misleading consumers.

"Please find attached a copy of the letter I have now written to the Chancellor passing on your concerns, I will write to you again when I have received a response and I hope that this will be helpful."

His letter to the Chancellor is in much the same vein - I'll let you know when he lets me know what the Chancellor says in response.

I rather thought this red herring might be thrown up due to the current discussions on hidden bank charges. What convenient timing - I think I smell a rat. "Greater transparency is needed"? You cannot have more transparency than ZERO charges. To my mind, our dispute with Santander has absolutely nothing to do with existing hidden bank charges. I have paid NO bank charges to Santander/Abbey National (hidden or otherwise) in the very many years I have had my "Free Banking For Life" business account with them.

Indeed, it is the opposite - by breaking a promise, they now seek to IMPOSE charges where there were previously NONE. I hope I do better from my MP but, after reading in the MSM today about them earning many times their MP's salary `moonlighting' elsewhere, I wonder how independent and unbiased some might be!

innovate

Susievintage wrote: »

I have just had this response from my MP - which concerns me slightly, as it seems that our concern about Santander breaching its contract is being highjacked by the bigger question about "can banking ever be really free"? Anyway, here it is:

"As I am sure you are well aware, the issue of free banking has very recently been receiving large amount of media attention. The consumer group Which? has published a report which suggests that some bank customers are having to pay hundreds of pounds in charges, whilst other customers are losing out on just as much money through lost interest. The report overall suggests that it is a myth to think that we are able to enjoy free banking in the UK.

"Given that Santander has now ended their free banking arrangements for existing customers I can well appreciate your frustration!

"It is my understanding that the FSA is currently considering whether regulatory intervention might be needed to insist that banks charge for current accounts, in order to prevent free banking being effectively subsidised by excessive charges.

"My own view is that before any changes are made consumers should be able to clearly see what they are already paying and information should be made easily available to inform consumber about the charges they may be liable to pay. Greater transparency is needed so that banks cannot get away with misleading consumers.

"Please find attached a copy of the letter I have now written to the Chancellor passing on your concerns, I will write to you again when I have received a response and I hope that this will be helpful."

His letter to the Chancellor is in much the same vein - I'll let you know when he lets me know what the Chancellor says in response.

Your MP seems to be falling into the chocolate teapot category. His answer is only slightly short of an insult since it doesn't actually address your question.

Obviously he - or his email writers - are not capable of distinguishing between issues, such as free business banking vs free retail customer banking. More likely, he probably hasn't even made an effort to understand your question. I'd ask for a face-to-face meeting for your MP to explain in more detail why he thinks you (and your friends) would want to vote for them again. Tell us his name / the constituency - because there will be people who won't vote for that MP if he doesn't make an effort to even only understand the question, never mind doing anything about the issue in hand.

PS. wonder what he means by "consumber" - - - is that a cross between consumer and cucumber?

magpiecottage

nxdmsandkaskdjaqd wrote: »

Has anyone had a reply from the FOS re their complaint?

Only an acknowledgement thus far.

Remember you have to first go through Santander's own complaints procedure (which seems to amount to you complaining and them sending a standard letter which ignores what you say).

You then complete the FOS form. You can download a blank one here or, if you prefer, I have placed a version which includes the main points here. Again, this will download for you to open up.

Look here for links to supporting evidence. You need to print everything off, sign the form and snailmail it all to FOS.

darren72

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?

I'm in this same position - I haven't had a letter yet.

Does the charge apply to ex A&L 'Free for Life' accounts too ?

Thanks

MattyMatty

I complained to Santander via the Ombudsman and today a woman from Santander Complaints called me to explain why the bank wouldn't be shifting on this.

Basically, she said, the bank sent out some new Terms and Conditions a while ago which said they could now give 60 days notice of any changes to the account. They have given us 60 days notice and therefore - because of the change in T's and C's - they are permitted to do this.

In other words, the promise of Free Banking Forever wasn't worth the paper it was written on because they could, in effect, worm out of it at any time they wanted, just by changing their Terms (and sending out one of those infernal small print letters you get every few months explaining that the bank's Terms have changed - and, doubtless, relying on you NOT reading it).

So I said that once I'd got her reply in writing I'd be going back to the Ombudsman and taking the complaint further.

Comments, anyone?:mad:

Brett_the_tiler

Have just had my get stuffed letter from santander so after reading this thread for a few days now (slow reader) I will be composing my letter to the FOS and sending it off.

Malcolm_Foster_2

MattyMatty wrote: »

I complained to Santander via the Ombudsman and today a woman from Santander Complaints called me to explain why the bank wouldn't be shifting on this.

Basically, she said, the bank sent out some new Terms and Conditions a while ago which said they could now give 60 days notice of any changes to the account. They have given us 60 days notice and therefore - because of the change in T's and C's - they are permitted to do this.

In other words, the promise of Free Banking Forever wasn't worth the paper it was written on because they could, in effect, worm out of it at any time they wanted, just by changing their Terms (and sending out one of those infernal small print letters you get every few months explaining that the bank's Terms have changed - and, doubtless, relying on you NOT reading it).

So I said that once I'd got her reply in writing I'd be going back to the Ombudsman and taking the complaint further.

Comments, anyone?:mad:

Typical `Smoke and Mirrors' duplicity from the banking sector as usual. Just like with further proposed increases in fuel tax (already the highest in the EU) by this greedy government, they rely on the continued apathy of the British customer and just carry on regardless in the absence of any real backlash. The as-yet low number of signatures on our petition is just one indication of this.