Santander student account

oldanddeaf

My Daughter started university in 2011 and we opened a Santander student account, it was sold to us on the basis of a good sized overdraft each year for three years and then you could transfer this to a graduate account at the end, also it had 3 years free insurance for three items. It now transpires that we were miss sold this as the overdraft is not for each year separately as we were led to believe but accumulative and it reduces in year 3 and potentially leaves you over your overdraft and incurring interest very quickly. It was only after going to our local branch to enquire that this had been miss sold and we are making a formal complaint, also they have cancelled the insurance, even though it was a 3 year deal. Has anyone else also been affected by this misleading selling by Santander?

Hasty1991

Hi,

You'll find that every student overdraft (at least to my knowledge) is cumulative. No student account I know of gives you a fresh overdraft each year. Some might increase gradually but probably so does the Santander one.

It will transfer to a graduate account, again, virtually like every other student account out there. It's interest free for the amount allowed, as before, the same as virtually every other one.

The insurance is being cancelled, yes, but it wasn't missold.

Am I being a bit short-sighted here, I don't understand, other than the insurance going, what's wrong?

Jazzy_B

I think it's a question of not reading the terms and conditions of the account properly, rather than misselling. This would have been an amazing offer if the overdraft was for each year.