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

Susievintage

I hope everyone has read this:

http://www.moneysavingexpert.com/news/banking/2012/09/santander-u-turn-saves-free-business-banking

I don't want to count chickens, but it's sounding good.... I'll post when I get my retraction letter.

Susievintage

And now being reported on the Beeb:

http://www.bbc.co.uk/news/business-19506634

Victor_Mildrew

:jPower to the People. Congratulations to everyone who stuck it out.:T
But how many people have they already scared into closing their accounts????????:(
Well done Susie for starting this thread.:A

psdie

A massive thank you and word of congratulations to those that campaigned tirelessly on this issue, particularly Susievintage, magpiecottage and tinman9898! :j

Santander were clearly in the wrong from the very outset on this change, at very least on an ethical basis and very possibly on a legal one too (collateral material forming part of contract, etc, as expertly highlighted by magpiecottage). Good they've done the right thing eventually - though I see they continue with the weasel words:

Santander_PR_robot wrote:

After listening to feedback from our existing customers, a small number of whom do not feel their businesses would benefit from these changes, we will be retaining the fee-free option for existing customers

Small number compared with 80k account holders they'd written to so far perhaps (of which a significant number may have been held by same individual / company, or no longer actively used), but I've not seen a single customer report anything other than disgust at the proposal. This forum is just one of dozens of groups, threads, articles and Twitter discussions outright opposing the change.

And that silly survey they totted out, saying customers wanted "more transparency" and better "business support"! What's the bet that that survey made zero mention that account fees would be necessary in order to make those changes? There's a big difference between "I'd like more support for my business" and "I'm happy to waive the fee-free promise if you ...". They just rang up, asked for a wish list, and used it as ammo.

Finally, a word of warning: Santander make clear they will retain the fees for newer accounts and "welcome" customers to "upgrade" to paid accounts. It'd be very naive to think this is the last we'll hear of fee changes - I'm betting they'll gradually introduce additional stealth charges for free ACs now, such as increased service fees and withdrawing postage paid cheque deposit envelopes. The latter I think I read might even already be on the cards?

Still, good news overall. Well done again all! :T

Justdesserts

YES!!! Not every day us little guys get to beat a bank into submission. Savour the moment!

A huge 'Thank you' to susievintage for starting the thread, supportive MPs and to all of you who contributed information and support. What a great collaborative effort!

buckster

Great news. I have a santander business account and we might become a limited company in the next few months. Is it possible to change the business name and still get free banking or would I need to open a new account and get stung with the fees.:(

Justdesserts

If you set up a limited company, buckster, it is a separate legal entity and will need a new account in its own name. Your invoices will be issued by the company and payments will be made to the company.

You can. Of course, open an account with another bank;HSBC and others are offering free banking but shop around. I don't think Santander are likely to let you transfer, and you may need to run both accounts for a bit to deal with outstanding bills and payments.

Hope this is helpful.

chevrons2

I only sent my letter a few days ago. Obviously they must have read what I put and thought they'd better perform a U-turn. I knew I was quite good at complaint letters but they've never had such an effect before!

magpiecottage

No it was my wife's letter that I drafted. She told me it was too harsh but it seems not!

Seriously, I think Santander overlooked the fact that in the business community as well as probably having ambulance chasers who throw wild accusations in the hope that something might stick, they might just have one or two customers who were on the other side of the fence and actually know how to find their way around the FSA handbook - and find a way to get the FSA's attention.

In reality, of course, they have not listened to me. However, pressure from at least one MP, from the FSA (also getting pressure from MPs) and, in all likelihood, the first letter from an adjudicator at FOS saying that somebody had provided evidence that Abbey/Santander promised free forever banking so the complaint would be upheld will have persuaded Santander that its position was hopeless.

Yorksport

Yes, good work all round. Short term PR blow for Santander undoubtedly. It's the same as the banks floating the idea of fees for personal accounts but in this case S took a gamble by actually sending out letters. It's difficult to imagine that they were surprised by the response. We're all likely to stay with them but that's the same position as they were in before. What a waste of time.