Santander free forever bank account changes

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

Olenna

Smurrfmo said:

Tobythedog3 said:

I just received the same letter today.  Sadly I think Santander have been smarter this time and can likely achieve it without falling foul of the Ombudsman.  The letter states "we're simplifying our product range.  The account type you currently have will no longer be available from that date".  So they intend to close the "Business Everyday Current Account"  and are offering to transfer us to a different account a "Business Current Account - Classic".  Of course it just so happens that there is a fee of £9.99 per month for it!   
So as I see it last time they tried to introduce a charge for what had been a free account (when we had been told it would be free for life).  This time they are being sneaky and closing down these accounts and want to transfer us to a new account with a £9.99 per month fee. Without checking the details I expect they can do this under the guise of "simplifying our product range".  Am happy to be proved wrong.

Well you might be right but I suspect not, the account type is still business current account.  The name seems immaterial.  What matters is the substance of what they are doing, they are not converting one account type to another but adding a charge to an account that was promised forever free.  Only the Ombudsman will decide who is right on this and the Ombudsman will have to consider the fairness of what is being done.

The only way they'd really be able use that tactic is if they were exiting business banking; otherwise it's a wholly business decision not to simply grandfather the 'free' accounts.

One legal aspect that would be interesting to consider is the differences between English/Welsh law and Scots law as the latter recognises 'unilateral promise' and this could apply to businesses registered or based in Scotland.