Not upheld: account changes, complaint handling, and fairness of fee introduction complaint against Santander UK Plc

Decision detail

Summary

N, a limited liability partnership, complained about Santander's decision to introduce a £9.99 monthly fee to its business bank account that had been fee-free since 2006, marketed as 'free banking forever'. N also complained that Santander failed to deliver its final response to the complaint in time, resulting in the charge being applied while N believed the complaint was still open. The ombudsman found that Santander's terms and conditions, consistently maintained over 20 years, permitted account changes with proper notice, and that significant regulatory changes since 2006 justified the fee. Santander provided more than the required 60 days' notice and was entitled to withdraw an uneconomic product. The failure to deliver the complaint response promptly did not affect the fairness of the charge, as N had received advance notice in July 2025.

The Ombudsman's reasoning

The ombudsman concluded that Santander was entitled to make the changes based on the terms and conditions, which consistently allowed for modifications with proper notice. The terms and conditions contained a clause permitting changes and made no guarantee of free banking for life. Santander provided more than the required 60 days' notice. The significant changes to banking regulation since 2006, particularly regarding anti-money laundering and fraud prevention, justified the fee introduction. As a commercial business, Santander was entitled to withdraw uneconomic products. The failure to deliver the complaint response in time did not affect the fairness of taking the October 2025 charge, as Santander had given sufficient advance notice in July 2025 and the charge was due approximately four weeks after the complaint was made.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website