Santander free forever bank account changes

ilenedover

opinion

'free forever'  is a free forever contract ...  one side of a contract cannot unilaterally alter the terms  whilst the contract is active, but it can seek to mutually agree terms to get out.

saying things like "if you dont agree to the changes and [potential] charges,  close your account down",  is not by mutual agreement is it,   or  "we wrote to you to say if you continue to use the account, you agree to the new terms,  or you can close it down" ... well that too is not by agreement either ... it is more like coercion to accept a fait acompli. 

there are folk who opened 'free forever' well before '2015' (whatever the significance of that date is to some) and have never had notices of changes or agreed to any, or for that fact ever been charged since the opening and of course they would not be as it was 'free forever'

let's see what the FSO decides though I wonder if they are all in bed together this time.

boingy

flickadee001 said:

 it does look like they aren't backing down 

They are not going to back down unless there is massive negative publicity and social media criticism or unless a regulatory body orders them to. The former does not seem to have achieved any real traction and the latter is unlikely - the FOS really don't have much power in that regard. They can't order Santander to keep the accounts free forever. They can't award compensation equivalent to the future costs of keeping the account open.

I agree that it is unfair but I really think Santander will escape unscathed apart from having to pay the FOS complaint costs.

MeteredOut

Thought I'd check out the FB group. Interesting response from the FOS to this one individual

https://www.facebook.com/groups/434991753218662/permalink/24987719057519257/

Specifically, they were asked to share the original T&Cs and the 2015 T&Cs (there's more details on the post)

GJS123

I have received the "holding" response from FOS saying my complaint will be assigned to an investigator some time in the future.  FOS appears to operate at a glacial speed.

Shortly, Santander will start charging for my "free forever" bank account.  Should I close the account before that happens?  It seems to me that I'm damned  if I do (I will never get the account back and will have been deemed to have voluntarily closed it) and damned if I don't (if the complaint fails I will loose the charges up to the point where the complaint is finalised).

What are others in the same situation doing?

Thanks. 

amyfairweather

If you can afford the £9.99 then keep it open, if you close the account then you are definitely giving away any opportunity of free forever as they won’t reopen them again.

I’ve mitigated the charge somewhat by moving reserves to a higher paying business savings account.

Section62

boingy said:

flickadee001 said:

 it does look like they aren't backing down 

They are not going to back down unless there is massive negative publicity and social media criticism or unless a regulatory body orders them to. The former does not seem to have achieved any real traction and the latter is unlikely - the FOS really don't have much power in that regard. They can't order Santander to keep the accounts free forever. They can't award compensation equivalent to the future costs of keeping the account open.

I agree that it is unfair but I really think Santander will escape unscathed apart from having to pay the FOS complaint costs.

Why not?  What is the legal basis for that limitation?  Several posters have already said the same or similar, but none have been able to identify a source or legal basis.

dcs34

Section62 said:

boingy said:

flickadee001 said:

 it does look like they aren't backing down 

They are not going to back down unless there is massive negative publicity and social media criticism or unless a regulatory body orders them to. The former does not seem to have achieved any real traction and the latter is unlikely - the FOS really don't have much power in that regard. They can't order Santander to keep the accounts free forever. They can't award compensation equivalent to the future costs of keeping the account open.

I agree that it is unfair but I really think Santander will escape unscathed apart from having to pay the FOS complaint costs.

Why not?  What is the legal basis for that limitation?  Several posters have already said the same or similar, but none have been able to identify a source or legal basis.

Consider the inverse. What is the law or legal basis that allows the FOS to demand Santander keep the accounts free forever?

In practise the free accounts will come to an end. The question is whether Santander will be required - either by regulator ruling or public pressure - to compensate customers for not honouring their original T&Cs.

Section62

dcs34 said:

Section62 said:

boingy said:

flickadee001 said:

 it does look like they aren't backing down 

They are not going to back down unless there is massive negative publicity and social media criticism or unless a regulatory body orders them to. The former does not seem to have achieved any real traction and the latter is unlikely - the FOS really don't have much power in that regard. They can't order Santander to keep the accounts free forever. They can't award compensation equivalent to the future costs of keeping the account open.

I agree that it is unfair but I really think Santander will escape unscathed apart from having to pay the FOS complaint costs.

Why not?  What is the legal basis for that limitation?  Several posters have already said the same or similar, but none have been able to identify a source or legal basis.

Consider the inverse. What is the law or legal basis that allows the FOS to demand Santander keep the accounts free forever?

In practise the free accounts will come to an end. The question is whether Santander will be required - either by regulator ruling or public pressure - to compensate customers for not honouring their original T&Cs.

Rule DISP 3.7.11 of the FCA handbook allows an Ombudsman to direct a respondent.

Rule DISP 3.7.12 requires a respondent to comply promptly with the direction.

There's nothing in the FCA handbook which appears to limit the Ombudsman's powers of direction in a way which would prevent them directing Santander not to impose charges on a complainant's business current account (in accordance with the promise the complainant was given).

If the word 'forever' is troubling people, then that is the word Abbey/Santander chose to use.

amyfairweather

Further to the above, when these charges do begin, it's important to report an "unauthorised transaction/payment" and complain to Santander each time this happens so that any future (small claims) action can take account of this.