Santander 123 Fee When Closing

phona

I've had a 123 CC for a couple of years but I've decided it's not really working for me any more. I've moved closer to work so my fuel costs are down and since my TSB card gets 5% at Aldi now my supermarket spend has dropped too.
Factor in the coming fee increase it really isn't looking like getting any more profitable so I've decided to close my account.

So now I'm trying to find out what happens with the annual fee when the account is closed. Is it refunded pro-rata? I've been looking through all the paperwork I can find but I can't seem to find out.
Do any of you clever people know?

Westie983

I asked this question via online message and was told it was a annual fee and that if I wanted to close the account I was able to do so but the fee has already been paid.

My next year starts next month so I have had 11 months of the year, so I will be closing before the next one comes out, although they did say I would only pay the existing £24 as Its not due to change till January.

I said I only had the account for the 18 months 0% interest free and as they are now charging me interest it makes the account less interesting and profitable.

I suppose it depends on how long into the annual fee year you are.

phona

Thanks Westie. I was starting to think it would be non-refundable. Any refunding policy would likely be set out in the terms, though I am surprised it doesn't say explicitly that it's non-refundable.

I'm about a third into the fee year so was hoping I could get some of it back. I think I'll just hold on to it - I'll probably still make a small profit if I keep using it as now.

I'm quite surprised nobody seems to have closed it mid-year and therefore has a definitive answer. Maybe everyone reached the same conclusion I just did!

ceredigion

A point to note: Santander require one month notice to close an account. I opened mine just over ten months ago, fee waved for the first year. Eighteen month 0% deal. Just instigated a balance transfer to settle the account so I can give notice before the end of the month so I do not incur the fee for next year. The fee even at £24 would all but completely nullify the stoozing at 0% for the next six months.

Jaffa_cake

I closed my 123 acc a few months ago.
The desk clerk said I may as well keep it open, as the anual fee is paid up for another 6 months.

No thanks,

Just close it now.
No refunds.

Same here, it was costing me money, so no point in keeping a leech.

agrinnall

Jaffa_cake wrote: »

I closed my 123 acc a few months ago.
The desk clerk said I may as well keep it open, as the anual fee is paid up for another 6 months.

No thanks,

Just close it now.
No refunds.

Same here, it was costing me money, so no point in keeping a leech.

How bizarre! You'd already paid the fee for the next 6 months, so rather than keep and use the card for that time to recoup some or all of that expense, you cost yourself £12 by closing it. Some people just have no financial sense

Krash420

Not to mention any cashback they could possibly have earned during those 6 months - there are very few places that will give the sort of returns that Santander does - even if it doesn't added up to over £24 a year, if you've already paid the fee, you might as well try to recoup that loss...

forgotmyname

Never thought about the monthly fee being a yearly charge and having to pay for it.

Only opened the account in May to pay the DD bills so no interest from savings etc.
The cashback paid for the fee plus a bit extra but nowhere near enough to cover £5 a month.

As they changed the terms is there noway to cancel without paying the increased charge?

agrinnall

forgotmyname wrote: »

As they changed the terms is there noway to cancel without paying the increased charge?

Given that it is such a significant change to the terms you would think that there ought to be a period in which customers can close the account, and receive a refund for the unused period that the fee covers. I was able to get out of my Plusnet contract early because they were increasing the line rental (a much smaller change than the Santander one), fortunately timed to coincide with my house move.

But the only way to be sure is to read the terms (especially anything that has come with the advice of the fee change), have you done that?

skea56

My annual fee is paid in July each year - it was my understanding that from next july it would increase, is this not correct?

sk56

ceredigion

skea56 wrote: »

My annual fee is paid in July each year - it was my understanding that from next july it would increase, is this not correct?

sk56

You are correct. The new fee will kick in at the beginning of your new year

agrinnall wrote: »

Given that it is such a significant change to the terms you would think that there ought to be a period in which customers can close the account, and receive a refund for the unused period that the fee covers. I was able to get out of my Plusnet contract early because they were increasing the line rental (a much smaller change than the Santander one), fortunately timed to coincide with my house move.

But the only way to be sure is to read the terms (especially anything that has come with the advice of the fee change), have you done that?

But you are not under contract (at least not in terms of time) so you are free to close your account. If you find the fee increase unacceptable wait until 28 days before the end of your year and give notice.

forgotmyname wrote: »

Never thought about the monthly fee being a yearly charge and having to pay for it.

Only opened the account in May to pay the DD bills so no interest from savings etc.
The cashback paid for the fee plus a bit extra but nowhere near enough to cover £5 a month.

As they changed the terms is there noway to cancel without paying the increased charge?

You have completely miss read this thread. We are discussing the San 123 credit card, not the San 123 current account. There are several threads on the current account if you care to look.