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

what15myname

cashisking1 wrote: »

Yes you could be right that Santander could say stuff the Abbey's promise, it wasn't ours, however, if the terms of the Santander acquisition specifically meant that they were to honour all Abbey's obligations as some commentators suspect then that would be different.

All very well and good this legalistic introspection, but in reality, we can't all afford the time and effort to get involved in arguing the toss with a huge multi-national with its own teams of lawyers. And will any of us live long enough to hear the outcome of any class action?
The only thing these people understand is defection.
If you leave, they lose out. Their Managers' bonuses are cut as their customer base reduces and their turnover and profits fall.
Just like the free-for-all in the energy market, however, other banks are not going to stand still; I reckon it's too early to commit to leaving until we are nearer the time when these charges get imposed (November according to the Santander customer services lady I spoke to today).
I will wait and see what the competition are offering nearer the time. Nothing stops them changing their terms, as long as they give notice (BTW Santander will be giving 60 days apparently).
I don't trust any of the b*****s!

zcaprd7

Susievintage wrote: »

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.

You are a star - will get my letter off today (and will make edits)...

zcaprd7

Went with this, bit more generic if others want to use it - also, I sent it to the customer service team in Glasgow:

RE: Free banking forever

Dear Sir/Madam,

When I opened a business banking account with Abbey National, I specifically chose the account because it was promising “Free Business Banking Forever”. The tariff sheet I received upon opening the account 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, and I have tolerated the level of service offered on the basis that the account was free.

This week, 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 change 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 the explanatory footnote. The FSA also agrees that this sounds incorrect, and I am considering making a formal complaint 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.

Sincerely,

Helmet_Hair

I'm yet another person who signed up in 2005 with the Abbey to get the Free Banking Forever Tariff. I have just posted off my letter to Mr Robin Foale, suggesting that he looks at the English dictionary where he will find that the definition of forever is for all time; for always. A Google search revealed a Santander advert offering the Free Banking Forever Tarrif in 2009, so I posted that as evidence. However, as I do not expect Mr Foale to change his mind on the issue, I have voted with my feet and have begun moving my hard earned pounds from my Santander business and personal accounts to another bank. Fortunately, I am only a sole trader and I have only put up with Santanders rubbish service because I didn't have to pay bank charges. And this was the last straw! Good luck to everyone who is complaining. Let's give Santander a hard time.

SheppyD

Helmet_Hair wrote: »

I'm yet another person who signed up in 2005 with the Abbey to get the Free Banking Forever Tariff. I have just posted off my letter to Mr Robin Foale, suggesting that he looks at the English dictionary where he will find that the definition of forever is for all time; for always. A Google search revealed a Santander advert offering the Free Banking Forever Tarrif in 2009, so I posted that as evidence. However, as I do not expect Mr Foale to change his mind on the issue, I have voted with my feet and have begun moving my hard earned pounds from my Santander business and personal accounts to another bank. Fortunately, I am only a sole trader and I have only put up with Santanders rubbish service because I didn't have to pay bank charges. And this was the last straw! Good luck to everyone who is complaining. Let's give Santander a hard time.

I feel the same really - the last couple of months they have been particularly bad. I lost my debit card and reported it as such ( it was a weekend so the normal business banking was closed ). Because I couldnt tell them the exact date I opened my account when I phoned I failed security and they wouldnt talk to me (no alternative questions)and said I should phone back ( admittedly they cancelled the card - but didnt check with me that no illegal activity had taken place). Honestly they couldnt care less. At that stage I had half decided to go somewhere new - this has just confirmed it. I am not paying to be given such useless service.

cashisking1

deleted by user

zcaprd7

I know its not a big deal, but its something for Martin to get involved with - with all the fuss over banks helping small businesses, and mis-selling claims - I can't beleive they are doing this to get a few quid.

Former_MSE_Helen

Hi guys, we have now written a news story on this and have linked the news story discussion to this thread.


"230,000 Santander business customers with free current accounts will soon be hit with a monthly charge..."

Read the full story:
Santander to charge for 'free' business accounts

twinkUK

I haven't had the letter yet but will be complaining as soon as I do. My understanding was that the account is free as it's all online and has certain transaction limits - I can't even pay cheques in over the counter but have to use the cashpoint which adds another day to it clearing. I'm certainly not paying £7.50 a month for the handful of transactions that go in and out, and I don't want or need any of the "benefits" that this increase is supposedly to pay for

So I will either be switching to something like the HSBC account as mentioned above or if worst comes to worst revert back to using my personal account as I'm a sole trader

Boy and I thought I already had a pretty dim view of banks :mad:

keithwjones

Complaint sent to Santander.

Keith