Santander free forever bank account changes

eskbanker

robatwork said:

Just been through the evidence as I don't have a horse in this game. It seems very clear. Subject to some terms regarding govt. tax or a change in law which there haven't been, it says Free Forever. "Not one year or two years like other banks. Forever".

Their marketing material will have changed over time, but it was notable that one shared earlier in the thread included:

And 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. 

which, strictly speaking, doesn't require the introduction of charges to be directly caused by the legal or regulatory changes (of which there have obviously been many), although it would be pretty lame for them to try to rely on that!

To be fair, I haven't seen any evidence that they're planning to use that sort of argument, but it remains to be seen specifically what they're referring to when they talk of "the business banking landscape has evolved significantly over the last decade" within their vague justifications, which are presumably going to be expanded when subjected to independent scrutiny.

HumpFree

neilsedaka said:

HumpFree said:

neilsedaka said:

HumpFree - Lots of that type of information has been posted to the Files menu of the Santander Free Banking Forever group on Facebook.

Thank you for the information. By the way, I searched for the group and joined it. I managed to download three files/documents onto my computer. However, when I tried to download more documents, I noticed that I could no longer find the group. I couldn’t access it again, nor could I see it among the groups I have joined. Does anyone know the reason for this, or has anyone else experienced the same issue?

Try these possible solutions.

• Check your emails for any confirmations of joining the group
• Close then reopen your browser
• Try a different browser
• Restart (not shutdown) your computer

Nothing has come through by email, I did manage to get in the first time and download a few files, but now it looks as though I’ve been removed or my access has been revoked. I’ve no idea why, though.

HumpFree

eskbanker said:

neilsedaka said:

HumpFree said:

neilsedaka said:

HumpFree - Lots of that type of information has been posted to the Files menu of the Santander Free Banking Forever group on Facebook.

Thank you for the information. By the way, I searched for the group and joined it. I managed to download three files/documents onto my computer. However, when I tried to download more documents, I noticed that I could no longer find the group. I couldn’t access it again, nor could I see it among the groups I have joined. Does anyone know the reason for this, or has anyone else experienced the same issue?

Try these possible solutions.

• Check your emails for any confirmations of joining the group
• Close then reopen your browser
• Try a different browser
• Restart (not shutdown) your computer

Or just accessing it directly? (your link has to be removed because I have not joined long enough yet).

Thanks eskbanker. Unfortunately, I couldn’t access it. This is the message I received. "This content isn't available at the moment

When this happens, it's usually because the owner only shared it with a small group of people or changed who can see it, or it's been deleted."

neilsedaka

HumpFree - The link posted by eskbanker works for me. Seems that you maybe need to use a different computer/device.

big_ste

heres the email i got ive redacted there name and my companys details for privacy reasons

Thank you for your patience while I’ve been considering (‘MLE’) complaint. I’ve now received enough information in order to reach my outcome. Based on what I’ve seen, I don’t think Santander needs to take any action. I’ve explained why below.

 

The complaint

You complain, on MLE’s behalf, that Santander is going to start charging £9.99 a month for MLE’s business banking, despite having previously said that MLE would receive free business banking for life.

Background

MLE opened a business account with Santander in August 2009. At the time, Santander said MLE would receive free business banking for life.

In 2025, you received notice from Santander that it was transferring MLE onto a new account – the Classic Account. This new account had a different charging structure. Most notable of which was a £9.99 recurring monthly fee.

So you complained to Santander but the bank didn’t think it had acted unfairly. In short, Santander said the business banking landscape had changed significantly over the years; and while Santander hadn’t increased the fees MLE paid previously, it now needed to do so in order to keep pace. Santander explained that this change was permitted by the terms and conditions of its agreement with MLE. The bank also said you retained the option to leave or switch MLE’s account if the company didn’t wish to accept the changes.

As you remained unhappy with Santander’s response, you referred MLE’s complaint to our service. You told us that:

·         It’s unfair that Santander are now trying to charge MLE for the account given it had previously said it would be fee-free for life. This is therefore an unfair change in the terms and conditions.

·         Since you are still alive, the free-for-life agreement stands and Santander’s proposed changes represent an unfair change in the terms and conditions

In its response to our service, Santander told us:

·         When the account opened it was Abbey National branded and was marketed as having “free day-to-day banking forever” or “for life”. Santander had taken over Abbey National in 2004, but the account remained branded as Abbey National until 2009. The fee-free proposition was covered in marketing material until around 2010. But fee-free business banking was never included in the terms and conditions of the account.

·         Around 2015 MLE were migrated to a new account – the Everyday Account – while this too didn’t have a monthly fee, there was no commitment to fee-free banking with this account

·         The bank is now looking to simplify the number of accounts it offers. This means MLE is being transferred onto a new account within its range (the Classic Account). The terms and conditions of the previous Everyday Account allow the bank to do this, and the bank is satisfied it gave the required notice specified in the terms and conditions.

·         The bank is now in the position where it needs to invest in the services it offers. Santander points out the increasing costs of complying with a shifting regulatory landscape.

·         If MLE choose not to accept the changes, you remain free to close the account or switch the account to another provider.

My findings

Having considered the points of both parties carefully. I’ve also considered the relevant regulations and thought about what is fair and reasonable in all the circumstances. Having done so, I don’t think Santander is treating MLE unfairly. I will explain why.

There doesn’t appear to be any dispute that, when you opened MLE’s business bank account, Santander said the company would get fee-free business banking for life. So I can appreciate why the change to a new account that costs £9.99 a month feels like a broken promise.

That being said, the question of whether a bank has the power to make changes like this is dependent on the terms and conditions of the account. Here, I’m satisfied these terms allow Santander to make this change.

Santander’s Business Banking General Terms and Conditions represent the agreement in place when the bank provided notice of its intention to switch MLE to the Classic Account. These terms say:

“This agreement may last for a long time, so we’re likely to need to make changes to it from time to time. We might change these terms or your accounts specific conditions. This includes interest rates or fees (such as adding or removing fees) as well as other terms. We have listed below the reasons we might want to make changes…”

The terms go on to give a (non-exhaustive) list of the reasons Santander might make a change to the agreement. These reasons include, among other things, to take account of changes in costs and regulations.

These terms also stipulate the types of changes that might take place and the relevant amount of notice Santander must provide. I note from this that Santander says it might “convert your account to another in our range”, and that the notice the bank would provide before doing this was “at least two months before the change”.

Moreover, looking back through the years, I believe it’s important to point out that even the account MLE took out in 2009 had terms that allowed Santander to vary both the contract and the fees. I have seen these terms, and they allowed the bank to vary the agreement, or even close the account and cease providing services, provided notice was given. I’ve also reviewed the various Tariff of Charges that applied throughout the years, and these all say something to the effect that charges or fees could be varied. Much the same is true with the terms that applied to the Everyday Account MLE transferred to around 2015.

In this case, I’m satisfied that Santander has a contractual basis to implement the changes it is making and to transfer MLE on to the new Classic Account. And, by providing MLE with the required notice of this change, I’m persuaded that Santander has adhered to the terms of the agreement it has with the company.

While I’m satisfied that Santander can implement these changes in line with the terms and conditions, I’ve also thought about whether it’s fair for the bank to do so. After consideration, I do think it is fair.

I say this because I think it’s reasonable to accept that Santander’s costs have likely grown substantially over the years. And it has been subject to changes in regulation, for example, additional regulation around monitoring accounts for various risks including protecting its customers from fraud and scams. In my view, the fact that it’s now common for a bank to have regular charges for business accounts is a reflection of these costs. Nor can Santander be said to be out of step with the wider industry in introducing them.

Santander has also told us that while every customer is being migrated to this new account, MLE is part of a smaller group who has benefitted from fee-free banking for a long time. In other words, some customers, similar to MLE and utilising similar services, have been paying regular fees for years. Moving forward, Santander has confirmed there won’t be anyone left benefitting from a general business bank account that doesn’t pay fees. It doesn’t strike me as unfair that the bank wishes to ensure a more equitable distribution of fees across its customer base.

I accept the basis of MLE’s complaint is around what you were told about the account in some of the other literature you received outside of the terms and conditions – the information that told you the account was “fee-free for life”. Although the marketing you received isn’t the agreement between MLE and the bank that sets out how the account will run and what will be charged, I’ve taken into account what you’ve told us. I’ve also looked at other documentation our service has seen, such as welcome packs and the literature describing the “fee-free for life” promotion, which is likely to have been the sort of information you would have seen at the time.

From this, I’ve seen that in the 2000’s (when Santander was advertising fee-free banking) the bank still made some caveat to this “promise” – such as how it might be varied due to changes in law or regulation. Naturally there have been numerous changes in law and regulation since then; and, perhaps more importantly, it speaks to the point that, even at the time, there was reason to suspect that one day the benefit of fee-free banking may end.

It’s worth reiterating the entitlement Santander has to close the account and cease providing services. I’m not saying I think the bank should’ve done that, but I think it is illustrative of the discretion Santander has in deciding what services it offers (as well as to who and at what cost).

For the above reasons, and while I can understand you may well feel some disillusionment with the bank now, I don’t think it is unfair for Santander to transfer MLE onto the Classic Account, with its associated terms and conditions including the monthly fees.

Next steps I think this is a fair outcome in the circumstances, for the reasons I’ve explained. If mle doesn't want to take things further, there’s no need to do anything and we’ll close the case on 24 October 2025. But if mle doesn't accept what I’ve said – and would like an Ombudsman to make a final decision on the complaint – you must provide any further evidence or representations by 24 October 2025. Requests for more time must also be made by that date. If I don’t hear from you by 24 October 2025 we might not be able to look at this complaint again.

 

 

 

 

Kind regards    | Senior Investigator | 02070937574 Financial Ombudsman Service | Exchange Tower, London, E14 9SR

 

 

sdd56

That's disgraceful. "Free forever" means exactly that - no if's, but's or maybe's.

The regulators are in bed with the corporate elite.

amyfairweather

Thanks for posting, I take back what I said earlier and apologise.

Now that we've seen that, what difference if any do others think sending it up the food chain to an actual ombudsman would make?  I'd be inclined to have a second opinion just to see what, if anything, they would say different, but that looks fairly cut and dried.

amyfairweather

sdd56 said:

That's disgraceful. "Free forever" means exactly that - no if's, but's or maybe's.

The regulators are in bed with the corporate elite.

Yes, they've based the entire case around the original T&C (about updated regulation) and the 2015 T&C changes.

The main selling point of the accounts, free forever, and more importantly the crux of this complaint has been totally overlooked when you read it through.

big_ste

lifes to short, i can switch banks, including personal account from santander it wont hurt them, it wont hurt me, might make a few quid on sign in bonuses. Seriously though i think its better to focus on your company/ business then let this distract

amyfairweather

I've just copied and pasted the above FOS text to @big_ste into ChatGPT and asked:

"i'm about to post a copy/paste of a response from the financial ombudsman service in relation to the 2025 dispute with Santander about 'Free business banking forever'. Someone I know received this response. I would like you to read it and then give me grounds for appeal."

It came back with chapter and verse which others can try for themselves, but a key suggestion was "The Ombudsman accepts that the account was advertised as “free business banking for life”, but argues that because it wasn’t in the contract, Santander can ignore that promise.  This could be a misrepresentation under the Consumer Protection from Unfair Trading Regulations 2008 (CPRs) (or similar principles in business banking), even if the words “free for life” were not embedded in the fine print. Marketing claims form part of the basis of the contract, especially if they induced the customer to sign up.......It went on to note "The Ombudsman is meant to rule on what is fair and reasonable – not just legally enforceable."