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Santander free forever bank account changes

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  • Smurrfmo
    Smurrfmo Posts: 28 Forumite
    Eighth Anniversary 10 Posts Name Dropper Combo Breaker
    If Santander do push this through, I will be challenging that decision in the small claims court.
    Me too, and I'll be expecting to win.  It looks like an open and shut breach of contract, I'm amazed that the Santander legal arguments as stated in the Telegraph are so weak.  But first I will go down the Ombudsman route as a win there opens up the possibility that Santander will need to withdraw these plans for everyone affected.   
  • Lightning360
    Lightning360 Posts: 399 Forumite
    Fourth Anniversary 100 Posts Name Dropper
    edited 17 July at 6:18PM
    So these confirm it is the account that is free, not a lifetime deal with Santander forever. I think Santander is perfectly correct to close the current account and transfer you to a paying account
    What part of "free business banking forever" do you not understand?
    The promise seems to be made together with the specific business account. This account is going away, so that promise, in theory, wouldn't apply to any other account.

    I'm not saying anyone is definitely right or wrong, but it is important to consider the specific account conditions rather than acting as if it applies to all accounts. Most of these life time promises businesses make are for the duration of a product and doesn't apply to other products forever. 
  • solidpro
    solidpro Posts: 605 Forumite
    Part of the Furniture 500 Posts Name Dropper Photogenic
    edited 17 July at 6:36PM
    This seems like the age old question of the letter of the law or the spirit of the law. My guess is that buried in some small print that nobody spotted, somewhere in a 2015 transfer of the product branding - not the actual accounts, there was some wording that tries to supercede their original, and repeated 'free forever' wording all the way up to the first time they did this in 2012, which they probably worked out a way where in 2015 they could do something that in another 10 years they could rely on in 'the letter of the law' in case against someone representing themselves and possibly unprepared. 

    Right now, nobody seems to know if what happened in 2015 inserts this weird wording they now appear to be relying on.

    This however, as I think anyone who cares that much is not in the spirit of the law that it's the same bank, the same service, the same people and in many cases the same exact product as when agreeing the contract back in 2008 or whenever. I had the same account number, sort code, and so on as I have now, and forcing me to change all that so they can start charging me for £10 a month for the exact same (actually slightly worse) service is completely against the spirit of the law.

    And their integrity. I'm a straight up businessperson and I stand by my word and my contract. When someone tries to renege on that, I do what a 1000 businesses have done with serial bankrupters and deal-breakers like Donald Trump and decided to never ever do business with them ever again.

    Their original offer was only supposed to change if there had been a huge change in banking regulations or the law - neither of which have occured. God knows why they want to pick a fight with all these very very very loyal customers - even if they're not making much out of it, the amount of people carrying their brand via their business is worth a lot, especially when transferring bank account has never been easier and there are other banks offering (for the time being) free business banking.

    They obviously don't need my business reserves, so if they want to rattle my cage, I'll take those sums elsewhere.
  • Lightning360
    Lightning360 Posts: 399 Forumite
    Fourth Anniversary 100 Posts Name Dropper
    Which unfortunately, is business. Some people will be annoyed, yet most people won't have a clue about it and those who do, don't care. There's not much of a downside for Santander doing it. 
  • clairec666
    clairec666 Posts: 362 Forumite
    100 Posts Name Dropper
    Which unfortunately, is business. Some people will be annoyed, yet most people won't have a clue about it and those who do, don't care. There's not much of a downside for Santander doing it. 
    There will be a bit of a backlash against them, but the financial impact probably won't be huge. Most of the affected business customers will look at moving their personal banking elsewhere. Some other people will boycott them for a while. Probably won't make a huge dent in Santander's finances.
  • solidpro
    solidpro Posts: 605 Forumite
    Part of the Furniture 500 Posts Name Dropper Photogenic
    edited 17 July at 6:58PM
    I have 4 Santander business accounts (2 of which do pay a monthly fee already), several personal accounts, 2 credit cards and previously had a mortgage with Santander. All this will go to someone else if they go through with this dumb idea. It will make a dent because there are plenty of people like me who are perfectly capable of switching bank accounts, or indeed having people on the payroll to do it for me.

    Should be easy, I already have existing accounts with HSBC, Natwest, Starling, Skipton, Virgin, Halifax. It's never been easier.

    I've got 17 business years left in me and as I have done before, the obvious thing to do is setup new business bank accounts with Santander, even if it has a fee - because I'm already there, doing it. This older account from 2008 is just a nice little thing they once did which carries some goodwill. 

    Goodwill which will change to HSBC or Tide or Co-Op or whoever else is offering free business banking. Everyone who asks me, I'll tell we used Santander for 17 years until they went back on a contract and now we use <whoever>.

    All that gone due to someone picking a fight they didn't need. If they want to s in their bed, let them, but I'm getting out!
  • clairec666
    clairec666 Posts: 362 Forumite
    100 Posts Name Dropper
    solidpro said:
    I have 4 Santander business accounts (2 of which do pay a monthly fee already), several personal accounts, 2 credit cards and previously had a mortgage with Santander. All this will go to someone else if they go through with this dumb idea. It will make a dent because there are plenty of people like me who are perfectly capable of switching bank accounts, or indeed having people on the payroll to do it for me.

    I've got 17 business years left in me and as I have done before, the obvious thing to do is setup new business bank accounts with Santander, even if it has a fee - because I'm already there, doing it. This older account from 2008 is just a nice little thing they once did which carries some goodwill. 

    All that gone due to someone picking a fight they didn't need. If they want to s in their bed, let them, but I'm getting out!
    While there are plenty of people who agree with you, how many will actually withdraw all their custom from Santander? Particularly if you've got a good mortgage deal with them and don't want the hassle of finding a new deal elsewhere. Most people will do what's financially best for them. Santander WILL lose customers because of this, and they may have underestimated how many they will lose, but they're not suddenly going to lose half their customers overnight.
  • solidpro
    solidpro Posts: 605 Forumite
    Part of the Furniture 500 Posts Name Dropper Photogenic
    edited 17 July at 7:08PM
    This isn't about mortgages, it's about a business bank account, which is actually relatively easy to migrate to a competitor for free, and to reduce our outgoings. I also don't like doing business with companies who go back on their contract.

    I have another business bank account with Santander that already pays £9.99 a month. In trying to get another £9.99 out of me, I will obviously move both accounts and they will lose £120 a year not gain it along with the money that used to sit in their reserves which both businesses retain as a buffer throughout the years.

    I suspect there are many like me which setup new fee-paying business accounts since their 'free forever' offer, and they'll move them to a free alternative at the same time.

    Like I said before it's not about 'losing a freeloader customer' it's about hundreds of thousands of small businesses given an incentive to get a better deal elsewhere for not only their free and fee paying bank accounts, but all the other Santander services a business customer would tend to use as well as the brand exposure in up to 230,000 businesses using their service.
  • mjm3346
    mjm3346 Posts: 47,291 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Section62 said:
    mjm3346 said:
    The charge is good news for all their other customers who will no longer be subsiding the "freeloaders 
    " - so this change will benefit the vast majority of customers - don't know why they haven't just given notice that the account is being discontinued and customers can switch to a fee paying account if they wish.
    You mean the "vast majority of customers" many of whom will be benefitting from a free personal current account and therefore in your terms would be "freeloaders" in their own right?

    Or do you want all personal current account customers to be charged a fee as well?  (seems not, as that wouldn't "benefit the vast majority of customers")
    Free personal accounts are widely available at most banks presumably that is not the case with business accounts
  • amyfairweather
    amyfairweather Posts: 31 Forumite
    Eighth Anniversary 10 Posts Combo Breaker
    So these confirm it is the account that is free, not a lifetime deal with Santander forever. I think Santander is perfectly correct to close the current account and transfer you to a paying account
    What part of "free business banking forever" do you not understand?
    The promise seems to be made together with the specific business account. This account is going away, so that promise, in theory, wouldn't apply to any other account.

    I'm not saying anyone is definitely right or wrong, but it is important to consider the specific account conditions rather than acting as if it applies to all accounts. Most of these life time promises businesses make are for the duration of a product and doesn't apply to other products forever. 
    Apparently, it went away in 2015, so why were we not charged from that point onwards?

    Nobody is buying that argument.

    Santander have messed and the national press are now starting to take notice again.
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