Santander free forever bank account changes

Hoenir

Section62 said:

Emmia said:

Is there anything stopping Santander just withdrawing banking facilities from the businesses still using the account? I feel this is the obvious move. 

As I mentioned upthread, the optics of debanking small businesspeople could be an issue at least.

Imposing a commercial charge to cover the cost of services provided is not debanking. Customers have a choice as to whether to remain or transfer their business. 

Emmia

Section62 said:

Emmia said:

Is there anything stopping Santander just withdrawing banking facilities from the businesses still using the account? I feel this is the obvious move. 

As I mentioned upthread, the optics of debanking small businesspeople could be an issue at least.

For example, Santander need regulatory approval for their takeover of TSB, so doing something which makes themselves unpopular and in the news for the wrong reasons would, on the face of it, be a brave decision.

In fact Santander still highlight how they "successfully acquired and integrated Abbey in 2004" whilst talking about the TSB takeover, which seems at odds with simultaneously claiming these 'free' accounts from Abbey are somehow ancient history -

https://data.fca.org.uk/artefacts/NSM/RNS/5720524.html

Santander can decide that although this is not great news, that long term it is better for their business not to be offering free accounts... Negative publicity is likely to be short lived.

Businesses using Santander are free to take their custom elsewhere.

Section62

Hoenir said:

Section62 said:

Emmia said:

Is there anything stopping Santander just withdrawing banking facilities from the businesses still using the account? I feel this is the obvious move. 

As I mentioned upthread, the optics of debanking small businesspeople could be an issue at least.

Imposing a commercial charge to cover the cost of services provided is not debanking. 

...

Agreed.

But you (and Emmia) were putting forward/querying the idea that Santander could close these accounts instead.  My replies are to those comments, not what Santander are actually doing.

You: "Contractually they can simply give notice and terminate the relationship."

Emmia: "...withdrawing banking facilities from the businesses still using the account"

Hoenir

Section62 said:

Hoenir said:

Section62 said:

Emmia said:

Is there anything stopping Santander just withdrawing banking facilities from the businesses still using the account? I feel this is the obvious move. 

As I mentioned upthread, the optics of debanking small businesspeople could be an issue at least.

Imposing a commercial charge to cover the cost of services provided is not debanking. 

...

Agreed.

But you (and Emmia) were putting forward/querying the idea that Santander could close these accounts instead.  My replies are to those comments, not what Santander are actually doing.

The option is open to them. Business relationships are two way. Some customers are more trouble than their worth. The Chancellor has imposed a considerable cost burden increase on employers. Be reviews happening across the spectrum as a result. 

jbryce

Section62 said:

Hoenir said:

Section62 said:

Hoenir said:

punto123 said:

Given, they tried last time and had to reserve, I have made a complaint, obviously they're likely to not change there mind at first, you can then get a deadlock letter and take them regulator, which I am sure cost them money, when you go to the regulator

This is a business not a consumer matter.  Contractually they can simply give notice and terminate the relationship. 

Though for Santander shareholders sake you'd hope someone would consider the optics of debanking small businesspeople as a way of weaselling out of a "free banking forever" promise (again).

Santander didn't make any promises though.  The promise died with the demise of Abbey National in the GFC and subsequent take over. All ex Abbey National business customers will have accounts operating under Santander contractual terms and conditions. A different legal entity. 

That's one way of looking at it I suppose.

But the word used in the headline and repeatedly in the body of this article (from 2012) is "Santander", not "Abbey National" -

https://www.bbc.co.uk/news/business-19506634

I'm not sure "We didn't make the promise" would improve the debanking optics that much.

It is Company Number 02294747 which was called Abbey National plc from 12 September 1988 to 11 January 2010, and changed its name to Santander UK plc. Same company, just a different name.

ducky2004

jbryce said:

It is Company Number 02294747 which was called Abbey National plc from 12 September 1988 to 11 January 2010, and changed its name to Santander UK plc. Same company, just a different name.

Exactly and their SWIFT code is still  ABBYGB2LXXX.

HedgehogRulez

Expenses fraud is a thing

sausage_time

noitsnotme said:

There’s already a thread about this - https://forums.moneysavingexpert.com/discussion/6617469/santander-free-forever-bank-account-changes

I have merged the threads

L999

Exactly the same as others - I've had my "FREE FOREVER - business banking account" for 20 years, received the letter, called and have logged a complaint (waiting to hear back).  I have all the supporting original brochures stating "Free Forever" - printed all over them. In my view it constituted part of the legal arrangement we all entered into and why we bought the service/product and opened accounts.  Regardless or not of take-overs, a bank takes on the customer base and the legal agreements in-place when the take over (in the case of Santander), legacy financial products are common across the financial industry - a bank can not just "bin-off" a product because "they don't like it" they will have to either continue the product and agreement they entered into, or compensate in someway.

My suggestion would be Log a complaint, ask for a complaint number ... 

Shelleysho11

SANTANDER LETTER CLOSING 'FREE BUSINESS BANKING FOREVER' ACCOUNTS!

i phoned Santander this morning and raised a formal complaint  - 0330 123 9860

Initially they didn't want to accept my complaint and kept referring me to their terms and conditions, but I kept referring them back to 2012 and the BBC link in the previous comment box above - 
"We guarantee that unless there are any changes to the law or banking regulations, or any new taxes relating to bank charges, you will benefit from free day-to-day business banking forever,"

The more of that that complain the better; I phoned but I suppose you could complain by online chat as well.