MSE News: Santander to charge for 'free' business accounts

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  • Susievintage
    Susievintage Posts: 89 Forumite
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    Latest from Live Chat with HSBC Business Banking people about how long free banking would last on the Business Direct account:

    You [i.e. me!] In short, I want to know how long my free banking would last if I keep within the stated transaction limits.
    Chris: Good Afternoon Susan. The Business Direct Tariff would remain free for you.
    You: Please can you confirm, as I am switching from Santander because they are just introducing account charges: as long as I stay within the transaction limits, there will be free business banking forever for me?
    Chris: That is correct. Yes.

    Sounds definitive to me.
  • Bobz
    Bobz Posts: 71 Forumite
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    I have just spoken with Santander. The guy I spoke to was 'sorry that I had been sold a business bank account as being free banking forever, as that is not the case'.

    He tried to tell me that the new offerings were very competitive compared to all of the business current accounts available at the other banks. I told him that the comparison was misleading, as it didn't have the HSBC business direct account (which my husband has as his business account) on the comparison table, and that is free for businesses such as mine which only have a few transactions each month. I have raised a complaint with Santander about this.

    As I only have a low turnover, I cannot increase the fees I charge my clients enough to pay for the monthly fee, so I will be moving when I get the 60 days notice. Here is a list of transaction limits to qualify for free banking with the HSBC business direct account https://www.business.hsbc.co.uk/1/2/business-banking/business-bank-accounts/business-direct-account/rates-and-charges;jsessionid=0000qWnALVJ5q0N3YPUcPq8Inf6:12c5g5r15

    The guy at Santander told me that they have been inundated with complaints today, so we are not alone!
  • gt94sss2
    gt94sss2 Posts: 5,631 Forumite
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    Susievintage wrote: »
    Sunil, I'm a bit confused. I've checked this HSBC account, and have found this: https://www.business.hsbc.co.uk/1/2/business-banking/business-bank-accounts/business-current-account/free-business-banking-explained;jsessionid=0000yhoBoWujledUpBWYoI7xnHV:12c5gttgs

    This says that they offer "6 months free business banking for Business Banking switchers with a turnover below £500,000" - so it's free, but only for six months, and "at the end of the free business banking period... you will automatically move on to the tariff of your chosen account". Is that what you expected?

    For the first 6 months (for companies switching to HSBC), HSBC don't charge any standard fees - after which the Business Direct Account remains free within its stated transaction limits. (i.e. for the first 6 months you can exceed the limits with no charges being applied).

    Regards
    Sunil
  • cashisking1
    cashisking1 Posts: 34 Forumite
    edited 13 June 2015 at 3:08PM
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    Deleted by user
  • bigsy
    bigsy Posts: 178 Forumite
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    Susievintage wrote: »
    Latest from Live Chat with HSBC Business Banking people about how long free banking would last on the Business Direct account:

    You [i.e. me!] In short, I want to know how long my free banking would last if I keep within the stated transaction limits.
    Chris: Good Afternoon Susan. The Business Direct Tariff would remain free for you.
    You: Please can you confirm, as I am switching from Santander because they are just introducing account charges: as long as I stay within the transaction limits, there will be free business banking forever for me?
    Chris: That is correct. Yes.

    Sounds definitive to me.

    Bear in mind that that won't stop them from changing the transaction limits.

    I have an HSBC Business Direct account and have been hit with my first charges after 3 years or so as they've recently reduced the maximum number of cheques you can write or deposit per month to qualify for free banking from 20 to 5. I wouldn't be surprised to see other 'tweaks' to the terms and conditions in the future.
  • callum9999
    callum9999 Posts: 4,392 Forumite
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    cashisking1 wrote: »
    Hello,
    Although several people have said that Santander can change the deal with 30 days notice, it is worth suggesting that the main part of the contract originally agreed to (by myself and many others) was that they offer free banking forever. We all have this in writing and formed a major part of the contract (an express term).
    This may be viewed by a small claims court to be a binding, express provision, regardless of the terms as they are in conflict with the forever promise. The promise was much more prominent than the hidden, conflicting terms. The 6 years to claim has passed however, there may still be a breach of contract by Santander as their promise is in fact, a fake and it is worth claiming a breach of contract based on a 'rolling agreement' as we use it and update the contract each month (we didn't just use it once) and claim for charges that we will all be out of pocket from (up to £5k).
    Maybe a Judge would agree that it is not reasonable to specifically offer one thing as part of a binding contract and then just take it away later without compensation. It could be viewed as a breach of an 'express term' in the rolling contract we all have. I for one am not going to let Santander hide behind a false promise, maybe you all feel similar.

    Have Santander ever promised such a thing though? Abbey may have, but surely there is no obligation for Santander to continue it if the T&Cs allow them not to (which they presumably do).
  • tiz
    tiz Posts: 107 Forumite
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    Got the letter today too. I'm a sole trader/very low number of transactions per month, a couple of credits via transfer a month and the occasional cheque paid in.

    I opened the account 9/10 years ago when it was Abbey National, just shopping around for other options now. RBS say they're swapping to Santander in the next 10 months ish so no point signing up with them (nice of them to be honest though!).
  • cashisking1
    cashisking1 Posts: 34 Forumite
    edited 13 June 2015 at 3:09PM
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    deleted by user
  • Susievintage
    Susievintage Posts: 89 Forumite
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    I hate to be defeatist about this, but I am assuming that Santander have, as they say in the American cop dramas, legalled up on this and checked that they can do what they propose. A campaign based on "disappointment" and maybe "sharp practice" will have more effect than one alleging illegality - but any financial contract lawyers out there might like to contradict me...?
  • Lansdowne
    Lansdowne Posts: 570 Forumite
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    cashisking1 wrote: »
    Yes you could be right that Santander could say stuff the Abbey's promise, it wasn't ours, however, if the terms of the Santander acquisition specifically meant that they were to honour all Abbey's obligations as some commentators suspect then that would be different.

    Surely this is wrong. Santander UK plc is the same company as Abbey National plc, they just changed their name. Different ownership but it is the same legal entity.
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