Santander end free banking!

[Spirits High]

I received a letter this morning saying that there would no longer be Free Business banking with Santander and that my account would be transferred to the "Award winning fixed monthly fee account!"

The monthly payment is based on how much cash you deposit in the account with the minimum being £7.50 & the maximum £40 :eek:

It's basically the same account as the free one but will no longer be free.

So if you bank with Santander have a read of the letter that drops on your door mat rather than just binning it :D

[leelive]

What a bum.
I will look out for my letter.
Lee

[DazzyD]

I'm only surprised it's taken this long for it to happen! :eek:

When the banks lost their cases at the High Court against unfair charges and illegal PPI mis-selling, a spokesman for (something like) The Association of British Banks said the banks would have to find a way to fund these claims against them and it could signal the end of fee-free banking. So, as a business customer of Santander, it would appear that they see you as fair game to help fund the charges of their wrong-doing.

Expect other banks to follow suit very soon! ;)

EDIT

In fact, just this week, the Barclay's Chairman, Sir David Walker, has commented that PPI mis-selling may have been avoided if customers were charged for their banking!!! :eek:

http://www.moneymarketing.co.uk/regulation/barclays-chair-agrees-in-principle-with-end-of-free-banking/1056163.article

[surround sounds]

Yes this was on the radio earlier in the week.
They did also say banks are thinking about charging on personal current accounts soon as well. May be a small charge of £4-£5 a month. Looks like free banking will disappear completely soon

[lazersounds]

Back to cash in hand for everything then, taxman will be pleased.....:zip:

[leelive]

This BBC article offers some good advice.

".....think about going to the County Court to obtain a judgement that Santander has breached its obligation to treat customers fairly, under the Banking Conduct of Business (BCOB) regulations."

http://www.bbc.co.uk/news/business-19012945

Lee

[Vectis]

This BBC article offers some good advice.

".....think about going to the County Court to obtain a judgement that Santander has breached its obligation to treat customers fairly, under the Banking Conduct of Business (BCOB) regulations."

http://www.bbc.co.uk/news/business-19012945

Lee


Sadly

"The terms and conditions of Mr Daniels' account make it clear that they can be varied by the bank with proper warning.

The bank says it is doing just that and will, in due course, issue all its customers with the required 60 days notice of the changes.
"

is indeed accurate.

I dug out my original Ts & Cs from when I joined up around 6 years ago and this get-out-of-jail-free card is most definitely in there.

There are other free (and cheaper) business banking alternatives but to be honest, £7.50 per month before allowing for tax relief (so more like £6 for most of us) is hardly going to break the bank (pardon the pun)!

I've probably wasted this much by taking the time to read and reply to this article! :o

[Vectis]

Yay! Oh no they don't!!

http://www.bbc.co.uk/news/business-19506634

:thumbsup:

[ianforest]

Is it a charge based on what you put in over the counter or through a machine, or based wholly on deposits, i.e. those that come in via internet banking also?

[Vectis]

Is it a charge based on what you put in over the counter or through a machine, or based wholly on deposits, i.e. those that come in via internet banking also?

They have just reversed the decision to charge those account holders who took up the "old" pre-Nov'11 'Free Banking Forever' account which does have a few limitations such as the amount of transactions and cash payments in per month, lack of branch facility etc..

If you want to "upgrade" to the paid account and get the extra "benefits" then you may still do so.

However for the vast majority of small businesses using the account as a mule for clearing cheques and electronically shifting balances around they can now continue to do so under the old terms for free rather than £7.50 plus per month.

[CRAZY K]

Go to payment in cash?

We are ahead of that game here :D

[Spirits High]

Yay! Oh no they don't!!

http://www.bbc.co.uk/news/business-19506634

:thumbsup:

I'll expect my letter next week then :D

[Vectis]

Just got mine :thanks:

[DazzyD]

To be fair, under the circumstances, they had no choice, really!

The alternative would have been to wait for a judge to make a decision on the definition of the phrase "free banking forever" as used in their marketing. The very word "forever" has a somewhat "definitive" definition that no judge, no matter how unsober or contentious, could change! ;)

[Vectis]

The cynic in me thinks that they knew all along that they wouldn't get away with it, but the announcement and subsequent withdrawal has seen sufficient account holders jumping ship that they've now saved a fortune.

The debacle probably hasn't sullied Santander's reputation very much as they didn't have one to begin with!

Ah well, all's well etc..