Santander free forever bank account changes

neilsedaka

So, I now have a new formal complaint in writing with Santander via their online Chat portal which worked quite well although there were long pauses between each of their responses. The outcome so far is that I have a complaint reference number, and "You should get a written response from us within the next 7-10 working days."

neilsedaka

Screenshots from 2010

rickgott

I have written to the Advertising Standards Authority (ASA) to lodge a complaint. More people need to do this to stave off their proposed charges for a second time. It was quick and easy to submit. I hope @Martin Lewis is on this one. It’s not the cost, it’s more the principle in my mind. 🧐

ForumUser7

rickgott said:

I have written to the Advertising Standards Authority (ASA) to lodge a complaint. More people need to do this to stave off their proposed charges for a second time. It was quick and easy to submit. I hope @Martin Lewis is on this one. It’s not the cost, it’s more the principle in my mind. 🧐

I'd be surprised if someone within MSE wasn't looking into this, but just so you know - as far as I am aware - Martin isn't active on the forums.

eskbanker

rickgott said:

I have written to the Advertising Standards Authority (ASA) to lodge a complaint. More people need to do this to stave off their proposed charges for a second time. It was quick and easy to submit. I hope @Martin Lewis is on this one. It’s not the cost, it’s more the principle in my mind. 🧐

Don't the ASA only consider current adverts?  They can compel companies to change the wording or even withdraw adverts, but don't believe they have any meaningful sanction over businesses who change their minds many years after making promises on old advertising, especially if such businesses are already regulated by a different authority?

subjecttocontract

Futuristic said:

subjecttocontract said:

I'm puzzled as to how the different potential outcomes can be progressed.
* FOS reject the complaints......does that mean legal action in court is the only option ?
* FOS uphold the complaints......can Santander still go ahead with charging for accounts ? 

Yes for first. You're out of options.

Second, the way I see is if FOS uphold they will just tell them to give you free banking for another year or two and maybe compensation (few hundred typically) (ie. extra notice/time) then be charged so still won't be free forever.

What people here also miss out is the fact every small-business Santander customer, even paid are being moved to a new "Classic" account. They are basically getting rid of every existing old account packages for this new one. This will probably work in Santander's favour when FOS review these I assume.  

With court action, the trouble is the amount of money that is likely to be claimed by an account holder is going to be relatively small which may raise the question, is it cost effective. I guess there is the option of the small claims court but I don't know how hundreds of individual claims against Santander would be viewed. The practicalities of legal action need to be considered.

Section62

subjecttocontract said:

Futuristic said:

subjecttocontract said:

I'm puzzled as to how the different potential outcomes can be progressed.
* FOS reject the complaints......does that mean legal action in court is the only option ?
* FOS uphold the complaints......can Santander still go ahead with charging for accounts ? 

Yes for first. You're out of options.

Second, the way I see is if FOS uphold they will just tell them to give you free banking for another year or two and maybe compensation (few hundred typically) (ie. extra notice/time) then be charged so still won't be free forever.

What people here also miss out is the fact every small-business Santander customer, even paid are being moved to a new "Classic" account. They are basically getting rid of every existing old account packages for this new one. This will probably work in Santander's favour when FOS review these I assume.  

With court action, the trouble is the amount of money that is likely to be claimed by an account holder is going to be relatively small which may raise the question, is it cost effective. I guess there is the option of the small claims court but I don't know how hundreds of individual claims against Santander would be viewed. The practicalities of legal action need to be considered.

The cost effective point works both ways though - if the size of the claim is small then it is often better for the party being claimed against to simply pay something as goodwill to settle the matter before it gets anywhere near court.  We see this principle in action regularly on this forum where banks and building societies simply offer some goodwill to make a complainant 'go away', rather than incur expense investigating the complaint properly and/or risk the complaint going to FOS.  If you also factor in the risk of reputational harm, doing a u-turn or making some kind of financial gesture is often the easy way out.

Depending how many people feel sufficiently aggrieved about this to contribute some money, it may be that a group action is the way it could end up in court in a less costly way.  If it gets to that stage I'd guess HMCTS might have a preference for one case to cover all claimants, rather than each one occupying its own court time.

Like most legal action, I think it unlikely significant court claims would proceed unless people have got (counsel) opinion there is a reasonable chance of success, and if it is reasonably clear there is a significant chance of success, Santander's legal team would possibly advise that a settlement would be the best way out.

subjecttocontract

Whichever way the FOS ruling turns out,  Santander may still decide their legal advice supports their decision to charge for business accounts so may still steam ahead with the changes.

The cheapest way to proceed would be through the SCC. High court action would be very costly as it requires claimants to have insurance in place to cover the cost of loosing.

jackjones01

This was in the media recently: 

https://www.thesun.co.uk/money/35904842/santander-customers-fume-new-fee-bank-account/?fbclid=IwQ0xDSwLxh5NleHRuA2FlbQIxMQABHvoVFRkXJhpNM5doZjVVYP9Xr00IyBzeM3D0_E5wV-E6y1cuwUxFaPMvrDId_aem_pWpgFDHX0m7mBQxNf22IwA

I haven’t read the whole thread so apologies if it’s already been mentioned. 

Section62

subjecttocontract said:

Whichever way the FOS ruling turns out,  Santander may still decide their legal advice supports their decision to charge for business accounts so may still steam ahead with the changes.

Equally, it may never get to an ombudsman decision if the number of cases being taken to FOS starts mounting up.

subjecttocontract said:

The cheapest way to proceed would be through the SCC.

AIUI you have to have an actual loss to go via the MoneyClaim route.  You can't claim on the basis charges you didn't agree to over the next 'x' years will cost you '£z'.  If so, the claimants would have to wait until they had been charged, and then individually make claims for the charges to date.  A successful claim wouldn't set precedent, so each case would be considered on its own merits, including if the same claimant goes back (say) a year later to claim the next tranche of charges.

subjecttocontract said:

High court action would be very costly as it requires claimants to have insurance in place to cover the cost of loosing.

AIUI there is no requirement to have insurance to commence a claim in the high court, but if no win-no fee or group action solicitors are used to take a claim forward then they are likely to want to cover their costs via insurance (that the claimants would pay for up front).  So 'very costly' is somewhat subjective, as the actual costs would depend on the numbers of people (if any) joining the action together with the premium charged.  Which in turn would probably be based on a case risk assessment.  In any event, unless there was a reasonably good chance of winning it is unlikely solicitors would want to take the case on this basis.

I'd guess within the cohort of people affected by this decision there will be enough with the necessary organisational skills and finances to take an action forward - if they feel strongly enough - and if legal advice suggests there is a reasonable prospect.

This is all a bit hypothetical though as we don't know what will happen when FOS gets involved.  Also, IANAL.