MSE News: Santander U-turn saves free business banking

tim441

well done... and thanks for all those that supported the effort with complaints to bank, MPs and ombudsman.

I hope those that were willing to rollover have seen the error of their ways!

mikemundy

Yes, I got my recinding letter today. Free for ever should mean just that.
The Coop bank offer free business banking. Might just open an account with them, and just keep a few pounds in my Santander account, and move it about occasionally just to annoy them.

psdie

adamfoster wrote: »

Apparently if you complain to ombudsman they have to pay £500 admin fee and they faced 230k people complaining...

Can I highlight that the Ombudsman system worked really well in this case - do something that !!!!es off enough customers and you'll be up to eyes in Ombudsman fees.

It's clearly the financial cost that triggered Santander's U-Turn, given that they didn't consult with us or make the account "upgrade" optional, as should have been all along.

olddoozer

The first letter I got from Santander made it pretty clear that the lady was not for turning and that they clearly thought they were offering me better value for money by charging me. I replied that they had not read my complaint and had just tried to fob me off with a stock answer. I told them that unless they changed their mind within 21 days I would go to Financial Ombudsman, Trading Standards, my MP and the BBC. The second answer was longer and more personalised to what I had actually said but again stated that they were going ahead with the changes. I then posted details of the complaint on the BBC Watchdog website and also did what somebody else suggested on here - emailed the chief exec of Santander a copy of my letter to their complaints dept. I suspect her email account was absolutely clogged with other people doing the same.
I was just about to sit down and start writing my letter to the Financial Ombudsman when a letter arrived advising that the change was not going ahead saying, "following feedback from some customers, we understand the benefits of our new current account may not be appropriate....blah de blah." .
I suspect that several people had already gone to the ombudsman and the cost was beginning to pile up. At £500 a complaint and based on a fee of £7.50 a month it would take them 5 1/2 years to get the £500 back - multiply that by 230,000 £115m) and it wasn't looking like a winning strategy! So well done to everybody who got stuck in and complained.
Incidentally if I chose to upgrade to the new account I could get an extra 0.15% interest on credit balances - about £17 a year for me; but only if I pay £90 for the privilege. Thanks Santander a truly compelling customer proposition!

susan47

Thanks to everyone who helped make Santander change their minds. I had done some research to find an alternative business account but hadn't yet found a satisfactory one, although I had already transferred all my direct debits to another account, and practically emptied my business account. I had also written a letter telling them to close the account and so when their letter arrived telling me they'd changed their minds, they literally just caught me in time. They've lost out though and I won't be putting all the money back in that I had there before. It's about time that these banks learned to treat their customers more fairly.

MakeitgoRIGHT

After the surrender, has anyone started a claim for all the trouble they caused, getting businesses to change accounts?

bordercars

I never received the first letter saying the charges were coming in, i havent been informed it's staying free either.

abbey / santander free biz banking for over 7 years now, i was very nearly at the co-op.

magpiecottage

A word of warning

Santander are sending out letters which include a term which allows them to change the terms of their account and say, in effect, that if you do not accept it you are closing your account.

I recommend you look out for it and, when it arrives, you send the following letter:


Ms Ana Patricia Botin-Sanz de Sautuola y
Chief Executive Officer
Santander UK PLC
2 Triton Square
Regent's Place
London
NW1 3AN

[DATE]

Dear Madam

Account Number [number]

I refer to the letter I have received from your firm dated [date]

Whilst I note the content, I would remind you that I opened my account on the basis that your firm offered "free business banking forever". In accordance with the law as established in Carlill v. Carbolic Smoke Ball Co. [1893] Q.B. 256 (C.A.), I consider Santander UK plc to be contractually committed to offering that facility to my business and it is an obligation that my business intends to hold your firm to.

Therefore, notwithstanding any changes you now make to the terms of the account, you can neither introduce charges nor force the closure of my account.

Yours faithfully.

Karamac

Along with magpiecottage, I'm sure Santander are doing their best to "lose" their remaining free accounts. The new changes in terms and conditions clearly state that if you don't accept the possibility (or should that be certainty?) of being transferred to another type of account then they can close your account.

I used magpiecottage's template, put a letter in the post and copied in an email also to the CEO - less than an hour later, got a telephone call from my local branch, saying my complaint is being looked into, so emails are certainly being read!

AET9

I haven't received this letter but with my most recent Bank Statement came a 3 page inclusion entitled "IMPORTANT CHANGES TO TERMS AND CONDITIONS FOR SANTANDER BUSINESS CURRENT ACCOUNTS AND BUSINESS SAVINGS ACCOUNTS" taking effect from 1 May 2014.
I have just read this through and this paragraph is there

6 A new condition 17.4 will be inserted to 'Changes to your account' (previously Condition 16) as follows:
17.4 We may convert your account to another account in our range if we have valid reason (for example, if you are no longer eligible for the account or if we decide to no longer offer that particular account).

At the end of the third page there is this closing paragraph:

If you are happy with the changes you do not need to do anything and unless we hear from you we will assume you accept the changes. If you decide not to accept the changes, please call us on the relevant phone number below. If you do not accept the changes, this will mean closing your account and there will be no charge for closing your account. Full copies of our updated Terms and Conditions will be available from 1 May 2014 on our website and from our branches.

This seems to be a much more sneaky way of getting rid of the free business banking account holders as I'm sure many will not read through these new T&C's.
I will use the template letter to point out that I am not accepting this change and I want my account left open.