Santander free forever bank account changes

Section62

mjm3346 said:

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

Maybe best to read this thread with information about other free business banking account providers, before throwing around the "freeloaders" comment then.

This site is about saving money.  If banks are providing free services - whether for personal use or for business use - then people obtaining (and retaining) those accounts fits with the site's ethos.  Calling people with legitimate access to free services "freeloaders" isn't.

solidpro

I wonder how many of the original 230,000 'free forever' accounts still exist. I bet it's less than 50%. The sheer amount of small businesses that fold, owners retire, companies merge, deaths. They're probably set to try and convert about 100,000 accounts to £120 a year each, losing about 25,000 in the process of which many of those will take another existing 50,000 fee paying accounts with them. So I guess they've worked out 25,000 additional monthly payments of £10 is worth all the bad press and future business. That 'fag packet' real calulation equates to them gaining about £3m a year.

It smells really bad. Like some office junior run their spreadsheet and came up with this supposed 100,000 £9.99 monthly payments (or £12m in annual imaginary money) they could go after. And low and behold in 18 months that person will have moved onto another role and the bank lost a huge amount of revenue, profit, goodwill and free marketing.

What's Santander's new 3 word slogan? "Santander Contract Breakers"?

What's the headline? "Santander go after 100,000 of their most loyal small business customers"?

ducky2004

It is now in Guardian.  Will MSE take this up and campaign too?

https://www.theguardian.com/money/2025/jul/17/santander-business-accounts-free-owners

Thecreative

OK so same letter just arrived, I have one of my current accounts with them too which I never changed as it was easier to link everything but may as well move the business to a free one, then change the current account and get a moving fee.
why they think everyone will be happy to suddenly pay 120.00 a year for no benefit I don't know.

solidpro

Thecreative said:

OK so same letter just arrived, I have one of my current accounts with them too which I never changed as it was easier to link everything but may as well move the business to a free one, then change the current account and get a moving fee.
why they think everyone will be happy to suddenly pay 120.00 a year for no benefit I don't know.

I'd be saving myself £240 a year because I'd be moving my existing fee-paying business account along with the original 123 business account. Of course I'm going to do that instead.

solidpro

I've sent this, with some amendments, to my local MP:

Subject: Urgent Concern – Santander Breaking Promises to Small Businesses with “Free Forever” Account Charges

Dear [MP’s Name],

I am writing to raise a serious concern affecting thousands of small business owners, including myself, following Santander’s decision to impose a £9.99 monthly fee on business bank accounts that were explicitly marketed as “Free Forever” or “Free for Life”.

Many of us opened these accounts based on that clear and unambiguous promise — that we would not pay any monthly fees for the lifetime of the account. This was not a short-term promotion, but a headline feature used to attract small businesses during a time when Santander (and previously Abbey) was building its market share.

Santander now claims it is entitled to change these accounts and introduce charges under general terms and conditions (specifically Section E.14), citing the launch of a new business product. However, I and many others believe this move amounts to a breach of contract, unfair commercial practice, and a potential violation of consumer protection laws, including the Consumer Rights Act 2015.

To be clear:

• The defining feature of these accounts was no monthly fees – ever.
• This was a major factor in our decision to bank with Santander.
• Santander has tried this tactic before in 2012, and rightly reversed it under pressure (as reported by the BBC and Huffington Post).
• They are now attempting the same manoeuvre again, but with greater confidence that customers will not challenge it.

I and others are preparing to escalate our complaints to the Financial Ombudsman Service, and are actively exploring the possibility of a class action, as forcibly moving customers to a chargeable product may constitute unauthorised deductions — a serious matter in both civil and potentially criminal terms.

This situation is deeply worrying. At a time when small businesses are already under immense financial pressure, Santander is choosing to undermine long-standing trust and exploit vague contractual clauses to override explicit commitments. It is a move that echoes the dynamics of the Post Office Horizon scandal — customers accused of debt or wrongdoing through institutional decisions they had no control over.

I would be grateful if you could:

1. Raise this issue in Parliament or with the Financial Conduct Authority (FCA).
2. Ask Santander to publicly explain how they believe this action complies with consumer law.
3. Consider pressing for clearer legal protections for business customers against retrospective account changes.

I would welcome the opportunity to discuss this further and can provide written evidence of the original account terms and communications from Santander.

Thank you for your time and support on this important matter.

Yours sincerely,
[Your Full Name]
[Business Name, if applicable]
[Your Constituency / Address]
[Email / Phone]

solidpro

https://www.birminghammail.co.uk/news/cost-of-living/santander-begins-charging-accounts-promised-32081411

Lightning360

Has anyone checked the 2015 terms and conditions, which is currently Santander's defence?

k12479

solidpro said:

1. Raise this issue in Parliament or with the Financial Conduct Authority (FCA)

Raise this piddling issue in parliament?

As usual with these personal crusades, those affected seem to have a grossly inflated view of the consequences for the business and of the public's interest.

creativetags

I phoned Santander today to make an official complaint. They gave me a reference number and told me I'd get a call back in 5 days. After that I'll be making a complaint with the Financial Ombudsman https://www.financial-ombudsman.org.uk/consumers/how-to-complain