Not upheld: account management, mandate update procedures, account fees complaint against Santander UK Plc

Decision detail

Summary

R, a charity that is also a limited company, complained that Santander refused to accept it was possible for a charity to be a limited company and unreasonably refused to amend its mandate, leading to monthly account fees. In early 2025, R's directors attempted to update the account mandate using a Treasurer's Current Account form, but Santander correctly informed them that a limited company mandate change form was required instead. Although one Santander agent appeared confused about the concept of a charity being a limited company, the bank provided accurate information about the required form in subsequent communications. The ombudsman found that R's directors chose not to complete the required form despite being informed of the requirement, and therefore Santander was not responsible for the mandate update issues or the account fees charged from October 2025 when Santander introduced fees for non-registered charities.

The Ombudsman's reasoning

The ombudsman found that Santander correctly identified that R, as a limited company, needed to complete the limited company mandate change form rather than the Treasurer's Current Account form. Although Santander's agent appeared confused about charities being limited companies in one call, the bank provided accurate information about the required form in its communications and final response. R's directors chose not to complete the required form despite being informed of the requirement. Regarding the account fees, the ombudsman accepted that Santander's process for updating the mandate was reasonably intertwined with updating records to reflect registered charity status, and since R did not complete the necessary mandate update steps, it was reasonable for Santander not to update its records or refund fees.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website