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Santander free forever bank account changes

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  • Section62
    Section62 Posts: 10,032 Forumite
    1,000 Posts Fourth Anniversary Name Dropper
    Section62 said:
    The situation reminds me of the class action that we took against West Brom B/Soc a few years back regarding BTL mortgage interest increases. We couldn't believe they made the decision that they had. They said they had taken legal advice and were assured they were right......and you'd expect a large organisation to get reliable advice. But they lost in the courts and it cost them £millions in payouts. Their reputation seems unaffected, so perhaps Santander are not overly concerned.
    I make the point fairly regularly on the Home/DIY boards that litigation is unpredictable.  You can have a barrister give you a 99.9% chance of winning, then on the day have a judge who agrees with a point you didn't think of (or know about), or decide your 'winning' arguments aren't that persuasive.

    Decisions to litigate (or not) are often as much about reputation and consequences, rather than the facts of the case. Losing can be expensive financially, but being seen to lose can have far-reaching consequences.

    I suspect a small building society is likely to get a more sympathetic response in the court of public opinion than a PLC bank, especially one which has recently been linked to complaints about banking regulation in the UK.  But nobody knows for sure yet how this might play out.
    I suspect most businesses affected by this are small one man band / family enterprises.

    Therefore, any court action would be through the small claims court and not financially ruinous should the decision go Santander's way.

    I gave the example the other day of someone aged 50 who would be claiming for 16 years of future £9.99's per month in advance towards their retirement age.

    If Santander lost the case, but did not back down on the £9.99 payments, I don't think it would be unreasonable to claim £2000 (plus a bit more for cheque/cash bankings) to cover those future payments for 16 years up to their state pension age.  They had, after all, been promised free banking forever and that could reasonably be argued until their retirement age.

    What would be unreasonable would be to claim for future £9.99's until they were, say, 100-110 years old (i.e. "forever").
    ....

    I was replying to subjecttocontract's points in more general terms about litigation outcomes and reputational risk, not specifically to the individuals involved in possible claims against Santander.

    That said, 'small claims' don't usually create precedent, so one business claiming against Santander wouldn't necessarily lead to a payout to all affected businesses.  Each business would need to claim separately, and there is no guarantee all the claims would go the same way.

    It is possible that a large number of claims (or complaints to FOS) might get Sanntander to back down, but also possible that Santander could go to court to get an order confirming introduction of charging was fair and lawful (which would then block further MCOL's/FOS complaints).

    What subjecttocontract was referring to was a class action case taken to the High Court (and appealed).  The potential cost implications of that are much greater for both parties, but if the action is taken by a significant number of claimants the financial liability for each one is more modest.  More to the point, sucessful action in the High Court would be precedent setting, so all businesses affected by the charges could rely on the outcome of the case to make their own claim (if not party to the class action) which is an outcome Santander would likely want to avoid (either by backtracking the decision, or by making a compensatory offer to those affected).

    As for the sums involved, I don't think someone running a small business would necessarily expect to stop at state pension age - particularly if they have employees and/or family members who help run the business.  There's no reason to think "forever" means 'until reaching age 65'.  However, the uncertainty about how long someone might continue to need their free business account could be a weakness in any 'small claims' for a specific amount.
  • frittendenme
    frittendenme Posts: 6 Forumite
    Part of the Furniture First Post Combo Breaker

    Lucky there’s space for all of us — even us simplistic, tabloidy types trying to stir up a bit of noise. As for the “grown-ups” comment… bold move. You might want to climb down off that horse before the altitude goes to your head. Not everyone tackling a problem does it with a lecture and a spreadsheet.

    Do you wanna see the Coldplay meme someone made grandad?

  • solidpro
    solidpro Posts: 636 Forumite
    Part of the Furniture 500 Posts Name Dropper Photogenic

    Do you wanna see the Coldplay meme someone made grandad?

      :D   :D:D
  • headsman
    headsman Posts: 1 Newbie
    First Post Photogenic
    Section62 said:

    As for the sums involved, I don't think someone running a small business would necessarily expect to stop at state pension age - particularly if they have employees and/or family members who help run the business.  There's no reason to think "forever" means 'until reaching age 65'.  However, the uncertainty about how long someone might continue to need their free business account could be a weakness in any 'small claims' for a specific amount.
    The business is the relevant entity for this discussion, not the person owning / running it.  It has the legal status of an individual on its own and there's no retirement age for a business and the ownership can change.
  • solidpro
    solidpro Posts: 636 Forumite
    Part of the Furniture 500 Posts Name Dropper Photogenic
    edited 21 July at 1:01PM
    irritated_tyke what a great great post.

    "Santander faces backlash over charges on ‘free forever’ business accounts"

    Business Matters Magazine: https://bmmagazine.co.uk/in-business/santander-free-forever-business-account-fees/
  • sdd56
    sdd56 Posts: 23 Forumite
    Part of the Furniture 10 Posts
    Well I've now had the letter too. I'm one of the original Abbey National "Free Forever" applicants.

    But they are not making it easy to make a complaint - I've now been on hold on the phoneline for 30 minutes...

    "We really appreciate your time, your respect, and your kindness".

    I am rapidly running out of all three.
  • Smurrfmo
    Smurrfmo Posts: 40 Forumite
    Eighth Anniversary 10 Posts Name Dropper Combo Breaker
    sdd56 said:
    Well I've now had the letter too. I'm one of the original Abbey National "Free Forever" applicants.

    But they are not making it easy to make a complaint - I've now been on hold on the phoneline for 30 minutes...

    "We really appreciate your time, your respect, and your kindness".

    I am rapidly running out of all three.
    I know, its like they are rubbing it in.  Stick with it, and they will also try to fob you off when you do get through.  The more complaints the more difficult it will be for them.
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