Not upheld: unfair account terms change and fee introduction complaint against Santander UK Plc

Decision detail

Summary

S, a limited company, complained that Santander unfairly migrated its free business account to a fee-paying account (£9.99/month) in October 2025, despite being promised 'free banking forever' when opening the account over 15 years prior. Santander argued the account terms and conditions had always permitted changes with notice, and that free banking was never guaranteed in the contractual terms despite marketing literature. The ombudsman found the contractual terms and conditions consistently allowed changes for over 15 years, Santander provided adequate notice (60+ days), and as a commercial business Santander was entitled to withdraw uneconomic products. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that while the account was marketed as 'free forever', the contractual terms and conditions have consistently allowed Santander to make changes with notice for over 15 years. The ombudsman distinguished between marketing literature and binding contractual obligations, finding the former does not override the latter. Santander provided adequate notice (60+ days) as required by terms and conditions. The ombudsman accepted that as a commercial business, Santander is entitled to withdraw uneconomic products and that free business banking is not a typical market offering. The ombudsman also found the letter was likely properly sent despite S's claim of non-receipt.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website