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

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  • innovate
    innovate Posts: 16,217 Forumite
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    Lansdowne wrote: »
    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.

    Not really - Santander UK plc is an amalgam of Abbey National (incl Cahoot), Alliance & Leicester, and Bradford & Bingley. Most likely they did not make these acquisitions to just continue these businesses as they were.
    And who knows whether any of those businesses would still exist if Santander had not bought them - they might have been bought by some other bank, or even have folded.

    I tend to agree with cashisking1- if the terms of the Santander acquisition specifically meant that they were to honour all Abbey's obligations, they have a legal obligation to do so. If not, they can do as they wish.
  • PEJ_3
    PEJ_3 Posts: 1 Newbie
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    I believe Santander actually took over Abbey back in 2004 and when they took them over they also took over their obligations. So, for instance, just as someone with a fixed rate Abbey mortgage did not see their rate change when Santander took over, I do not expect my free business banking forever account to be changed. Forever means forever. I'm writing a letter to Santander Business Banking in Bootle to tell them that I do not consent to the change of terms and that if they unilaterally change them I will consider that a breach of contract. I'm also contacting the FSA about this. We just need another piece of smelly bank behaviour at this moment in time don't we!!
  • Susievintage
    Susievintage Posts: 89 Forumite
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    I have found my Abbey paperwork, and it states very clearly that it is free business banking forever, within certain transaction limits - nowhere is that magic clause about being able to change T&Cs whenever they want.

    So I have phoned the FSA, and here is what we do:

    1. Phone the FSA (0845 606 1234) to log your complaint as well - they will get a good idea of the scale of the problem
    2. Complete their online complaint form about misleading financial promotions - http://www.fsa.gov.uk/pages/doing/regulated/promo/report/form.shtml
    3. Email your complaint to Richard Harris at customer.services@abbey com. (This is the contact given on the FSA Register.) State that it is an "official complaint". Explain what redress or resolution you are seeking - for me, it's free business banking forever as promised.
    4. Give him 8 weeks to reply - this is allowed by law.
    5. If you're happy with his response, open the champers (or Tizer).
    6. If you're not happy, escalate it to the Financial Ombudsman - they can do nothing until you have done steps 3 and 4.

    I'll be doing all this later today - the more of us who contact Mr Harris, the better.
  • noh
    noh Posts: 5,802 Forumite
    Name Dropper First Post First Anniversary
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    The Abbey/Santander conditions will allow either party to terminate the agreement with notice.
    If you don't agree to the fees they will terminate the agreement which is within their rights.
  • 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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    UPDATE:

    The customer.services@abbey.com email address does not work.
    Richard Harris may or may not exist - wasn't he in "My Fair Lady"?

    The only way to make a formal complaint is by sending a letter to:
    Santander Business Banking
    Bridle Road
    Bootle
    Merseyside
    L30 4GB

    Yet more time and money wasted....
  • Paulgonnabedebtfree
    Paulgonnabedebtfree Posts: 2,740 Forumite
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    I was going to post about this but I see that it has been well covered already.
    I already have my complaint ID number.
    I took out "free business banking forever" about 10 years ago and have always stayed within the qualifying transaction limits. I have alreasdy made a verbal (and verbiose :-) ) complaint over the phone. I have my complaint number. When they knock back my complaint, I will escalate it. I think cases taken to the ombudsman cost them money so I will do that even if it's clear by then that I won't win. If I stay with them (very unlikely), I weill take frivolous complaints to the ombudsman on a regular basis if it costs them. Trust me that I will try to make this cost them a lot more than £7.50 a month.
    Furthermore, I wish to make a complaint about false advertising but don't know how to go about this. Can anyone help me on this one please.
    I've had my share of run-ins with these vermin so it's not as if it's the first time they've tried to screw me over.
  • cashisking1
    cashisking1 Posts: 34 Forumite
    edited 13 June 2015 at 3:10PM
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    deleted by user
  • Susievintage
    Susievintage Posts: 89 Forumite
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    Hello Paulgonnabedebtfree
    To complain about advertising, you can fill in a form with the FSA:
    Complete their online complaint form about misleading financial promotions - http://www.fsa.gov.uk/pages/doing/re...ort/form.shtml
    Or contact the Advertising Standards Authority.
  • Paulgonnabedebtfree
    Paulgonnabedebtfree Posts: 2,740 Forumite
    edited 17 July 2012 at 12:58PM
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    Susievintage wrote: »
    When I started my business in October 2003, I opened a business bank account with Abbey National, when they were offering "free business banking forever". They have of course been taken over by Santander, and I have maintained my account.

    I have today received a letter from Santander, saying that "later this year" they will transfer my business account to their "award-winning £7.50 fixed monthly fee account". I have several questions:

    1. Do I have a leg to stand on with Abbey's promise of "free business banking forever", as trumpeted all over the application paperwork that I still have?

    2. Is £7.50 a month (which sounds a lot to me, at £90 a year) what a business account costs?

    3. Can anyone recommend a free (or free-ish) business account - all I do it pay in cheques (no more than six a month) and make BACS transfers (I am a business trainer), so it's not a busy account or one that needs fancy facilities.

    Many thanks for thoughts on any of the above.

    Many banks do limited time freebies. So long as you don't have loads of customers paying you by BACS (the details will need altering) you may wish to do the rounds of getting a free year or two with each bank in succession.
    Alternatively, though it isn't free, you may wish to consider the following: If you join the FSB (about £100 a year but a bit more for year one) you can get free business banking with Co-op. Before dismissing this out of hand due to the £100 being more than £7.50 a month, maybe consider this: The FSB membership means that if you are ever investigated by HMRC (potentially quite costly even if found innocent), you get a free accountant to deal with their inquiry. There are insurance policies for this but I believe they usually cost more than £100 a year. The FSB membership does have other fringe benefits - one of them being free legal advice for certain situations. The £100 is tax deductible so for most people will only cost about £67 in real terms once the lower tax and class 4 NI bills are taken into account. Also, you get an annual bonus from Co-op bank of £25 meaning that the end cost to you is just £45 a year.

    I have now made my complaint on the form on the FSA website.
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