Santander free forever bank account changes

MeteredOut

For those that don't believe Santander made this change for anything other than financial reasons, why do they think the decision was made?

(I'm not sure if that question makes me a narcissistic Santander defender or stan. Is there a definition somewhere so I can check?)

fest0r

MeteredOut said:

For those that don't believe Santander made this change for anything other than financial reasons, why do they think the decision was made?

(I'm not sure if that question makes me a narcissistic Santander defender or stan. Is there a definition somewhere so I can check?)

Once again, you missed my point, intentionally? Read my previous posts.

In simple terms: if customers leaving due to this decision, end up costing more than the profits generated then it has been a failed strategy. People are claiming it's inconsequential due to global profits, but it's certainly not inconsequential to the people at Santander that made decision.

Emmia

MeteredOut said:

For those that don't believe Santander made this change for anything other than financial reasons, why do they think the decision was made?

(I'm not sure if that question makes me a narcissistic Santander defender or stan. Is there a definition somewhere so I can check?)

Santander might be simplifying their product range, or might have decided they wanted rid of unprofitable/low margin accounts - which might be dominated by those on "free forever". Or it might be for another reason entirely... One can only speculate.

Ultimately Santander is a business, not a charity, business don't tend to offer their services free of charge, and usually increase their fees over time. And charities need revenue to do their works.

In the view of the bank they have given (in accordance with their T&C's) suitable notice to affected account holders. What affected holders do in response, is up to them - they can pay, move their account and/or attempt appealing to FOS - which may, or may not go in their favour.

Smurrfmo

Regular message for those affected by Santander proposed charges for free forever business bank accounts - ignore the sometimes pro-Santander guff on here and ensure you do two things: 1. Complain to Santander and get a complaint reference number and 2. Register a complaint with the Financial Ombudsman service.  That is how this issue will get resolved.

Emmia

Smurrfmo said:

Regular message for those affected by Santander proposed charges for free forever business bank accounts - ignore the sometimes pro-Santander guff on here and ensure you do two things: 1. Complain to Santander and get a complaint reference number and 2. Register a complaint with the Financial Ombudsman service.  That is how this issue will get resolved.

Or they ignore the complaints, see it as a storm to be ridden out and proceed regardless.

MeteredOut

Emmia said:

MeteredOut said:

For those that don't believe Santander made this change for anything other than financial reasons, why do they think the decision was made?

(I'm not sure if that question makes me a narcissistic Santander defender or stan. Is there a definition somewhere so I can check?)

Santander might be simplifying their product range, or might have decided they wanted rid of unprofitable/low margin accounts - which might be dominated by those on "free forever". Or it might be for another reason entirely... One can only speculate.

Ultimately Santander is a business, not a charity, business don't tend to offer their services free of charge, and usually increase their fees over time. And charities need revenue to do their works.

In the view of the bank they have given (in accordance with their T&C's) suitable notice to affected account holders. What affected holders do in response, is up to them - they can pay, move their account and/or attempt appealing to FOS - which may, or may not go in their favour.

Banks simplify product ranges to save costs (they can often reduce the headcount that service these accounts). Getting rid of unprofitable/low margin accounts is to save costs. Both are financial reasons.

It'll certainly be interesting what the FOS say (or, as suggested previously) whether the FCA get involved.

It'll also be interesting to hear how many people with these accounts are staying and paying the fee, in the hope/expectation of getting that money back, versus those that are leaving. I'm not sure I'm reading any general consensus on that from this board.

Smurrfmo

Emmia said:

Smurrfmo said:

Regular message for those affected by Santander proposed charges for free forever business bank accounts - ignore the sometimes pro-Santander guff on here and ensure you do two things: 1. Complain to Santander and get a complaint reference number and 2. Register a complaint with the Financial Ombudsman service.  That is how this issue will get resolved.

Or they ignore the complaints, see it as a storm to be ridden out and proceed regardless.

Not possible, this will be decided by the Financial Ombudsman Service (FOS) or by a court, highlighting the need to 1. Make a complaint to Santander, making sure to get a reference number and 2. complain to the FOS.

MeteredOut

fest0r said:

MeteredOut said:

For those that don't believe Santander made this change for anything other than financial reasons, why do they think the decision was made?

(I'm not sure if that question makes me a narcissistic Santander defender or stan. Is there a definition somewhere so I can check?)

Once again, you missed my point, intentionally? Read my previous posts.

In simple terms: if customers leaving due to this decision, end up costing more than the profits generated then it has been a failed strategy. People are claiming it's inconsequential due to global profits, but it's certainly not inconsequential to the people at Santander that made decision.

And once again, my point: I suspect Santander will have done those calculations before taking the decision. Granted that doesn't mean they'll have gotten it right.

solidpro

This all reminds me of the main character in 'Fight Club' who works for a big car company who do a simple equation that if the cost of a recall is more expensive than paying out on all the lawsuits from damage from a fault, they don't do one. Santander is acting like a company who has done some very simple maths and we have to hope that  repuatation and regulation makes a difference to their simple calculations.

Section62

Emmia said:

...
Ultimately Santander is a business, not a charity, business don't tend to offer their services free of charge, and usually increase their fees over time. And charities need revenue to do their works.
...

I suspect the vast majority of personal current account customers in the UK would have a different experience of free services, albeit Santander are one of the banks also offering charged-for accounts. 

Curiously, one of Santander's charged-for personal accounts (123Lite) is currently coming to an end, and by default being converted into a free 'Everyday' account.

Because the alternative charged-for 'Edge' current account is less generous (and quite a few customers probably already have one alongside their 123Lite), the result of the 123Lite conversion policy is probably going to be an increase in the number of free personal accounts on Santander's books.

So one decision (charging for these business accounts) is supposedly being made because Santander are 'not a charity', whilst at the same time another decision has been taken to stop charging on (probably a greater number) of other accounts.  Looking at the overall picture, perhaps the "business, not a charity" way of looking at the situation doesn't really reflect the true complexity of running current account/banking services in the UK?