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

Bobz

I have received a written response to the complaint I raised over the phone with Santander. They have ignored my complaint about the business bank account comparison being misleading, when HSBC offers a free business account, and just tries to justify why 'this move...provides our customers with a competitive fixed cost of banking' and refers to the online comparison with other banks' business bank accounts :-(

I have now made a complaint to the FSA, and will be writing a response to Santander's fobbing-off letter.

Update: the address to send written complaints to is:

[FONT=&quot]Santander Corporate, Commercial [/FONT] [FONT=&quot]& Business Complaints team[/FONT]
[FONT=&quot]301 St Vincent Street[/FONT]
[FONT=&quot]Glasgow[/FONT]
[FONT=&quot]G2 5NT[/FONT]

Susievintage

In response to a request, I am about to paste in the text of the letter that I sent yesterday to Santander (and I sent it to Santander Business Banking, Bridle Road, Bootle, Merseyside, L30 4GB). PLEASE do not just cut and paste this text - I'm not being precious, but it's just that our letters will not have the same impact if they are all identical. Please feel free to model yours on mine, but do make it different so that it sounds like a personal concern rather than an orchestrated campaign!

Here goes:

Dear Sir/Madam

In October 2003, I opened a business banking account with Abbey National, and chose the account because it was promising “Free Business Banking Forever”. The confirmation letter I have from David Lamb, manager of the Abbey National Business Banking Centre, dated 15 October 2003, says this: “Your business Bank Account has been opened on our Free Banking tariff”. The tariff sheet enclosed with that letter has a section entitled “Free banking forever”, which says: “This tariff offers free banking forever for businesses operating within specified transaction limits.” There is a footnote to this, which says: “Subject to relevant changes to the law, regulation or the imposition of any tax in connection with bank charges.”

As you know, Abbey National became abbey, and then Santander. Throughout these changes, my account remained the same: same account name, same account number, same sort code, same free banking.

Yesterday, 16 July 2012, I received a letter from Robin Foale, MD of Santander Business Banking. This letter says: “Our business strategy has to change…. Over the coming months your Business Current Account will be transferred to our award-winning £7.50 fixed monthly fee account.”

I am of the view that this is not permitted. I was promised and signed up to free business banking forever, and the introduction of charges now announced is not in answer to changes in law, regulation or taxation – the only circumstances mentioned in that explanatory footnote. The FSA also says that this sounds wrong, and on their instruction I have made a formal complaint under their Handbook, specifically under BCOBS 2.3 (Other general requirements for communications and financial promotions).

The resolution I seek is an undertaking from Santander that the account I hold will continue to operate according to the terms on which it was sold to me: free business banking forever.

I would be grateful if you could look into this matter for me.

Paulgonnabedebtfree

cashisking1 wrote: »

You are wise. There was me thinking I was becoming the only one to not want to take the Santander letter c**p and yes, even wondering about certain posters too.
I am numb to the lies as that is all I see around me commercially. You hit hard enough and often enough and the feeling goes. What it is replaced with however, is the power to do something about it and to take the emotional power back. It ain't personal to the banks until they are fired because they got caught.
I won't give this up either as it literally is the thin end of the next financial wedge that will drive up prices for everyone and allow banks to do whatever they want. All without recourse for the noops that just pay out, do nowt and let them. Not this noop.
(I now hear Churchill's 'we will never surrender' voice and see film clips of his two fingured salute in my head and so I had better go get a coffee)

Maybe we should start a double act on stage . "We will fight them in the High Streets........................."
If they get away with this, they won't stop at £7.50 a month. I assume you have enough nous to see that already?

Paulgonnabedebtfree

smallbusinessmum1 wrote: »

Hi all, Im in the same position. Two business accounts with the charges letter arriving yesterday. I have written a complaint letter to Santander as they were happy to take us on as Abbey customers and run the account for years with the terms we signed upto many years ago.

I have suggested that its new customers who should have the new terms imposed.

I am hoping if enough people complain they consider the PR gaff, (Even if you phone to complain - you should write too or it might not be followed up - as was my previous experience on the Santander ISA dept.) although as the bank takes over more and there is less choice I dont suppose we will be heard.

I will then pass the complaint onto the Ombusdsman should my account not stay the same as it is now.

I settled for phoning - but I did make sure that they gave me a complaint reference number. So, if they do try to ignore it, I will log aecond complaint about my first complaint not being responded too (this could go on ad finitum) .

Paulgonnabedebtfree

As an addendum to all this: It has been stated on here that if they are forced to withdraw the threat to start charging, they could alter the T & Cs by reducing the number of free cheques etc. Now when I first took this account out, I believe that the cheque limit was actually 50 (rather than the 100 it later became) and that the limit for cash and/or cheque transactions was restricted to 10 transactions per month. If those limits were breached, there would be a charge of 50p per item.
I am not an unfair man. If they wanted to give notice to re-impose those original limits upon me (within the framework of "free banking forever") I wouldn't kick up about that personally. Cheques are much less widely used now - though I might get 50 some months in spite of converting many customers to BACS. I also get paid cash by some customers. It would be no great hardship to restrict myself to 10 paper transactions per month. It would be the cheques mainly. The cash could be deposited in larger lumps or even kept back for cash float and/or in lieu of personal draws on the business - not that I get paid as much cash these days anyway.

cashisking1

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cashisking1

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DruidDonagh

Just a question. These fees are for the business. Is it not possible that they are tax deductible?
Has anyone checked this with the ombudsman? I do wonder what they have to say about that.

And when it comes to changing T&C, LLoyds is even worse, they change then roughly every 6 months or so

Paulgonnabedebtfree

cashisking1 wrote: »

Yes, although I don't think I have any nous at all any more with what I see around me, but I do see this as the very start of a huge slippery slope for all, even though they all might not get it yet.
May I say as a compliment to you, that it is because of your remarks that I have bothered to continue in this forum once I saw the 'we're all doomed' remarks, so may I thank you for that and if I had a big enough hat, I would 'tip it'.

Well I'm very pleased that I have helped in your decision to stick around. Hopefully we can compare notes as the complaints move forward?

Paulgonnabedebtfree

DruidDonagh wrote: »

Just a question. These fees are for the business. Is it not possible that they are tax deductible?
Has anyone checked this with the ombudsman? I do wonder what they have to say about that.

And when it comes to changing T&C, LLoyds is even worse, they change then roughly every 6 months or so

Business banking charges are indeed fully tax deductible. So, for most people the argument is about £5 a month once a lower tax and lower class 4 NI bill are allowed for.
For me though, it's also about not letting the b******s get away with it.