Santander Mis-selling?

TheMoney

I have an appointment with Santander on Monday to open a new account, but just wanted to quickly clarify whether this situation would be mis-selling.
My mother had a current account with them that cost £10pm and included travel insurance, key care and various other benefits. As she usually travels 2 - 3 times a year this was very useful. I found out today that when she was in the branch last week, they had told her that account was no longer being offered and she needed to switch to the 123 account, which is £2pm, pays interest on your balance, but has no other benefits I'm aware of.
She doesn't hold anywhere near enough in her current account to make much use of the interest, infact it would barely cover the annual fee.
My view is that if that was the case with the old account, they should have switched it to a non fee paying account, but as far as I'm aware when a bank no longer makes an account available to new customers, they should still allow existing customers to keep that account along with all benefits.
To me, they have conned her out of an account that was actually useful for her, and given her a new one that provided no real benefit to her.
Any advice greatly appreciated

dunstonh

but as far as I'm aware when a bank no longer makes an account available to new customers, they should still allow existing customers to keep that account along with all benefits.

Nope. They can withdraw it.

AndyPK

If she has her bills setup by direct debit to this account she will get cash back which will cover the £2 fee.

bengal-stripe

If your mother has no use for the cash-back and the interest that comes with the 123 account, she can always opt for the free "Every-day" account.

TheMoney

You're missing the point. I have checked with Santander and that particular account is no longer available to new customers, but if you already have it you can continue to use it along with all benefits. They have for no reason made my mother believe she HAS to switch accounts, and given her one that is by far much less beneficial. I'm simply querying if that would fall under mis-selling, as if it does this will be taken as far as possible with the regulatory bodies if they haven;t learn their lesson from PPI.

leclerc

TheMoney wrote: »

You're missing the point. I have checked with Santander and that particular account is no longer available to new customers, but if you already have it you can continue to use it along with all benefits. They have for no reason made my mother believe she HAS to switch accounts, and given her one that is by far much less beneficial. I'm simply querying if that would fall under mis-selling, as if it does this will be taken as far as possible with the regulatory bodies if they haven;t learn their lesson from PPI.

They are phasing the account out and your mother will be changed automatically from next month to their everyday account. Article in the Telegraph from June: http://www.telegraph.co.uk/finance/personalfinance/consumertips/banking/10185659/Santander-to-axe-packaged-accounts.html

They are not forcing her to do anything but they are withdrawing all benefits and reducing the number of current accounts down to simplify it.

TheMoney

Not that I don't appreciate the replies, but I would be very grateful if people actually read my posts. I have never stated she was forced to do anything, she was made to believe she HAD to switch accounts, and there was no mention of any non fee paying accounts, in my eyes the have provided false/mis-leading information in order to get her to take the 123 current account. I'm not asking for information about Santander, merely opinions on the methods they have used to switch the account.

AndyPK

I don't think your going to get anywhere with that tac.

[Deleted User]

TheMoney wrote: »

I have never stated she was forced to do anything, she was made to believe she HAD to switch accounts, and there was no mention of any non fee paying accounts, in my eyes the have provided false/mis-leading information

So make a complaint if you believe your Mother has been wronged. However, I very much doubt you'll get anywhere. You were not present when she transferred the account and so you will be basically making a "hearsay" complaint by a third party.

leclerc wrote: »

They are not forcing her to do anything but they are withdrawing all benefits and reducing the number of current accounts down to simplify it.

Yes, this is key and will be the reason any complaint will not be upheld.

YorksClare

If they told her that there was no other option but to transfer to the new account instead of letting it automatically move to the everyday account, then yes they have miss-sold her the account.

It all depends on what was said, and there are a lot of "hard sell" practices in all bank branches. I had to spend a whole lunch hour "account review" meeting trying to get someone to understand that I didn't want a stocks and shares folio once... If your mother is not as determined as me, she was probably just worn down into it.

Maybe you could help her to go back and switch to the everyday account? If they won't let her do it, then say something cutting about picking on old ladies! You don't necessarily have the first-hand evidence to pursue them for miss-selling, but it doesn't hurt to show them that you think they have perhaps used what my father calls "grossly sharp practice"...

BobQ

TheMoney wrote: »

Not that I don't appreciate the replies, but I would be very grateful if people actually read my posts. I have never stated she was forced to do anything, she was made to believe she HAD to switch accounts, and there was no mention of any non fee paying accounts, in my eyes the have provided false/mis-leading information in order to get her to take the 123 current account. I'm not asking for information about Santander, merely opinions on the methods they have used to switch the account.

Well in a way they were correct that she had to move to another account because they were withdrawing it and would have moved her account in any case. She should have had a letter as my friend did in July saying it was to happen. I think that all they have done is used the opportunity of your mother entering the Branch during the final weeks to offer her a choice. She had to switch, its just a question of what to.

If as you say your Mum was told she had to have a 123 account this is misselling (technically). Or did they say that based on her usage of the bundled account the 123 was her best option? Are you sure its not? The benefits of the account are more than the interest and most people find cashback on their bills covers the fee. Does your Mum not pay DDs from the account for water/gas/council tax etc?

Even if it is misselling, any compensation is based on what she has lost. It sounds from what you have said its about £2 since they would have moved it anyway.

That said if she complains to Santander their usual policy is to send a letter saying they understand your complaint (which they rarely do), have investigated it (which they usually have not), resolved it (that is the letter your reading saying they are sorry if you were inconvenienced) and an offer of £30 as a good will gesture.