Santander free forever bank account changes

amyfairweather

Sorry, my joke/sarcasm has clearly gone straight over some heads and I've been lumped in with the "fanboys".

amyfairweather

solidpro said:

amyfairweather said:

 Another example of an “unprofitable” profitable customer who is now, most certainly, unprofitable.

How on earth do you know it isn't profitable? I have had a free forever account for 17 years and never realised a single penny in interest - for business accounts holding cash reserves this may have been extremely profitable for Santander to just process a few payments each month.

Santander's online offering is stagnant and full of holes. It hasn't really evolved since 2008. This lack of R&D, closing all their branches and ramping up charges seems to be the opposite of "innovating to better serve our customers in the future.”  Anyone using their online banking can easily spot the broken 'pay an existing payee' functionality which screams mess of a 2008 software architect but being unravelleable by a 2025 team of software engineers. They can't do it properly so they slap a 'oh try this other way instead' note on the portal.

Remember 'free forever' customers are not allowed to use a counter services and have tight restrictions on what they can do each month. It's a very very bare-bones account and will not cost Santander very much at all to furnish each month with a repository for a company's cash reserves.

On the current trajectory their decision to do this will be an easy sum loss for them once I switch and close everything besides.

Some people who post their own two-penneth worth without skin in the game seem to think 'free forever' customers were lavished with high interest payments on balances, red carpet treatment, unlimited service and free bi-monthly BBQs at one of Santander's 'work cafes'.  You really shouldn't be so jealous, because the terms really weren't all that.

What are you on about?  We're on the same side and have been since day one.

fest0r

amyfairweather said:

solidpro said:

amyfairweather said:

 Another example of an “unprofitable” profitable customer who is now, most certainly, unprofitable.

How on earth do you know it isn't profitable? I have had a free forever account for 17 years and never realised a single penny in interest - for business accounts holding cash reserves this may have been extremely profitable for Santander to just process a few payments each month.

Santander's online offering is stagnant and full of holes. It hasn't really evolved since 2008. This lack of R&D, closing all their branches and ramping up charges seems to be the opposite of "innovating to better serve our customers in the future.”  Anyone using their online banking can easily spot the broken 'pay an existing payee' functionality which screams mess of a 2008 software architect but being unravelleable by a 2025 team of software engineers. They can't do it properly so they slap a 'oh try this other way instead' note on the portal.

Remember 'free forever' customers are not allowed to use a counter services and have tight restrictions on what they can do each month. It's a very very bare-bones account and will not cost Santander very much at all to furnish each month with a repository for a company's cash reserves.

On the current trajectory their decision to do this will be an easy sum loss for them once I switch and close everything besides.

Some people who post their own two-penneth worth without skin in the game seem to think 'free forever' customers were lavished with high interest payments on balances, red carpet treatment, unlimited service and free bi-monthly BBQs at one of Santander's 'work cafes'.  You really shouldn't be so jealous, because the terms really weren't all that.

What are you on about?  We're on the same side and have been since day one.

I think your post was very clear given your use of quotations.Anyone taking that as pro Santander needs to read it again.

born_again

Section62 said:

born_again said:

Section62 said:

born_again said:

RichardStevensons said:

born_again said:

Given the number of complaints on this subject, they will have a standard rejection letter. They will not need to investigate each complaint on the same matter.

But sending out a one-size-fits all response means that they aren't treating each complaint individually.  My complaint had more information than covered in their response, as did my MP's, as did press articles.  Santander are failing to address the complaints and firing out hyperbole hoping it will do. 

In my case, I would say their response has covered one part of around seven in my complaint.  When does the rest get dealt with? 

Have you asked them?
Have they said that the complaint is now resolved & your options going forward.

If you raised a complaint on the ending of "Free" then that is their company line response. They already know that FOS are sitting on the complaint, as FOS can not do anything till charging starts.
Even then it could be months before they issue a response to them.

Not making any judgement on the rights or wrongs of the change.

Is there a source for the bit in bold?

FOS can't act on something that has not happened. (Think current car finance claims)
They will wait & see what Santander do. Then if santander have not changed their mind & start charging, they can look at the complaint & decide if Santander have done something they should not have. 

Santander have done something (this time) though - they have served notice they will start charging for the accounts.

I don't understand how FOS are blocked from considering a complaint, hence asking for a source.  What, specifically, says FOS cannot consider a complaint before charging starts?

born_again said:

Given  this happened before in 2015?

The difference is in 2015 Santander didn't introduce charges - according to at least one poster on the thread the position of FOS at the time was that as charging hadn't been introduced they couldn't consider a complaint about charging.  That makes sense.  But the key difference now is that notification of charging has been given.

born_again said:

Then it is possible that santander added something to the T/C that allows for a change to the account pricing. Which so long as process has been followed, then there will be nothing FOS can do. They can not force santander to back down.
It would be then down to people to take the court route at their expense.

It isn't just about 'process'.  The fundamental thing FOS have to look at is fairness.  So FOS should consider whether the 'process' is unfair.  Making changes to the accounts in 2015 without clearly explaining the effect of those changes should - in my view - be considered unfair.  Whether FOS take that view remains to be seen though.

FOS are not blocked. They will not act till it has happened. They can not preempt a change that may not happen. They maybe talking to Santander in the background, who knows.

If Santander has added a clause saying that in the future, with a certain notice period they can/will vary the charges on the account. FOS can not do anything. Fair or not.
 Santander could just pull the account full stop. Giving the required notification period ultimately. Which FOS could not stop.
FOS do not have a remit to change a banks internal procedures. So long as they are within FCA regulations.

Section62

born_again said:

Section62 said:

born_again said:

Section62 said:

born_again said:

If you raised a complaint on the ending of "Free" then that is their company line response. They already know that FOS are sitting on the complaint, as FOS can not do anything till charging starts.

FOS can't act on something that has not happened. (Think current car finance claims)

FOS are not blocked. They will not act till it has happened.

You think they "won't", rather than "cannot" then?

born_again said:

They can not preempt a change that may not happen.

Again, what is the source for this?

A customer complains that they have been given notice that they will be charged for a service/that their charges will be increased/that their interest rate is being reduced/that their account is being closed, and you are saying FOS "can not" do anything with that complaint before the change is actually implemented?

If so, there must be something specific which says that, because it could considerably reduce the ability of FOS to ensure a fair outcome for the customer.  A restriction on FOS of that nature would surely have to be documented somewhere?

griffja

Here's a formal letter you can send to Santander:

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[Your Name] [Your Business Name] [Your Address] [Your Account Number] [Date]

Mr. Mike Regnier Chief Executive Officer Santander UK 2 Triton Square Regent's Place London NW1 3AN

Re: Breach of "Free Forever" Business Account Guarantee - Formal Complaint

Dear Mr. Regnier,

I am writing to formally complain about Santander's decision to impose £9.99 monthly fees (£120 annually) on my business account from October 2025, in direct breach of the "free forever" guarantee under which this account was opened.

Background

My account was opened with [Abbey National/Alliance & Leicester] based on explicit marketing promises that business banking would be "free day to day business banking – not for 12 months, 18 months or even two years, but forever." This was not a promotional offer but a permanent contractual term that formed the basis of my decision to bank with your institution.

Current Situation

I have been informed through customer service that these changes will proceed on 1st October regardless of the original terms, with the only alternative being account closure. This response is unacceptable and fails to acknowledge the fundamental breach of contract this represents.

Key Points

1. Ministerial Intervention: I am aware that the Minister for Small Businesses, Gareth Thomas, has written to you directly about this matter, expressing dismay at Santander's actions and urging you to reconsider. This demonstrates the seriousness of your breach.

2. 2012 Precedent: Santander previously attempted to impose fees on these accounts in 2012 but was forced to withdraw when faced with a potential £115 million compensation bill from the Financial Ombudsman Service. The same principles apply today.

3. 2015 Account Migration: While Santander may claim the 2015 migration to "business every day" accounts removed the guarantee, this change was not transparently communicated. The migration letter explicitly stated there was "no change" to the £0 monthly fee and failed to disclose that the "free forever" guarantee was being removed. This lack of transparency potentially invalidates any claimed variation to the original terms.

4. Scale of Impact: Over 50,000 small businesses are affected by this breach, many of whom, like myself, have been loyal customers for over two decades based on your "bold promise."

Required Resolution

I require Santander to:

1. Honor the original "free forever" guarantee for my account
2. Confirm in writing that no fees will be applied to my account
3. Acknowledge that the original contractual terms remain in force

Next Steps

If this matter is not resolved satisfactorily within 8 weeks, I will:

• File a complaint with the Financial Ombudsman Service
• Contact my Member of Parliament to add to the political pressure already being applied
• Join any collective action being taken by affected customers
• Consider legal action for breach of contract

I note that Santander's spokesman stated you are "simplifying" your business banking. However, this cannot justify unilaterally breaking contractual promises made to secure customer relationships.

I trust you will give this matter the serious attention it deserves, particularly given the reputational damage Santander will suffer from breaking such a clear promise to longstanding customers, and the precedent of your 2012 retreat on this exact issue.

I await your response within 14 days.

Yours sincerely,

[Your Signature] [Your Name] [Your Business Name]

cc: Gareth Thomas MP, Minister for Small Businesses cc: [Your Local MP] cc: Financial Ombudsman Service (reference pending)

---

Additional Notes:

• Send this via recorded delivery to ensure receipt
• Keep copies of all correspondence
• You may want to customize the sections about Abbey National or Alliance & Leicester depending on which bank you originally opened the account with
• Add any specific dates or reference numbers from your original account opening if you have them

born_again

Section62 said:

born_again said:

Section62 said:

born_again said:

Section62 said:

born_again said:

If you raised a complaint on the ending of "Free" then that is their company line response. They already know that FOS are sitting on the complaint, as FOS can not do anything till charging starts.

FOS can't act on something that has not happened. (Think current car finance claims)

FOS are not blocked. They will not act till it has happened.

You think they "won't", rather than "cannot" then?

born_again said:

They can not preempt a change that may not happen.

Again, what is the source for this?

A customer complains that they have been given notice that they will be charged for a service/that their charges will be increased/that their interest rate is being reduced/that their account is being closed, and you are saying FOS "can not" do anything with that complaint before the change is actually implemented?

If so, there must be something specific which says that, because it could considerably reduce the ability of FOS to ensure a fair outcome for the customer.  A restriction on FOS of that nature would surely have to be documented somewhere?

In effect yes. So long as they have the change covered in T/C.
I don't have any sources. Just my understanding of the process.

FOS are there to police the banks & make sure they are following both FCA & banks own procedures. When a customer complains.

So if FOS ruled that the charge was not to be applied for whatever reason (No idea what they might use). Santander could simply pull the account under the T/C of account notice, as a business decision & FOS would be powerless to act. 
They can not force a bank to keep a account open.

born_again

griffja said:

---

Additional Notes:

• Send this via recorded delivery to ensure receipt
• Keep copies of all correspondence
• You may want to customize the sections about Abbey National or Alliance & Leicester depending on which bank you originally opened the account with
• Add any specific dates or reference numbers from your original account opening if you have them

Recorded deliver is a waste. It is not signed by Santander. It is signed in bulk by RM at local delivery office.
Better to get proof of posting & this is taken as delivered after so many days.

GeoffTF

Section62 said:

A customer complains that they have been given notice that they will be charged for a service/that their charges will be increased/that their interest rate is being reduced/that their account is being closed, and you are saying FOS "can not" do anything with that complaint before the change is actually implemented?

IIRC you said that complaints about the changed T&Cs in 2015 were rejected because the FOS could only award compensation for customer losses that had already occurred, and not for potential losses in the future. It would appear that they cannot now rule on the changes in 2015 because of the 6 year timeout rule, and they can now only consider the current T&Cs.

tinmanius

I made a formal complaint to Santander regarding them introducing a monthly charge to their free forevever business Account.  I received a deadlock letter and have now raised a formal complaint with the financial ombudsman.  They contacted me for more relevant information which I have supplied by telephone and email. I am currently awaiting a further response on the matter.  I am also looking at opening an HSBC account which is currently free of charges for small businesses within certain limits, as a backup just in case.  If the charges are applied I shall close all my Santander business and personal accounts.