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

Decision detail

Summary

B, a limited company, complained that Santander unfairly migrated its fee-free business account opened in 2002 to a fee-paying account (£9.99 monthly) in October 2025, despite marketing the original account as 'free banking forever'. Santander argued the marketing promise was never included in the binding terms and conditions, which have always permitted changes with notice, and that regulatory changes since 2002 justified the fee. The ombudsman found that while the account was marketed as fee-free, the contractual terms consistently allowed changes, adequate notice was provided, and Santander was entitled as a commercial business to withdraw an uneconomic product. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that while the account was marketed as 'free banking forever', the contractual terms and conditions have consistently allowed Santander to make changes with notice since the account's opening. The marketing promise was either subject to regulatory changes or was not incorporated into the binding contract. Significant regulatory changes since 2002 have increased banking costs, justifying the fee. Santander provided adequate notice (more than 60 days required) and offered reasonable alternatives. As a commercial business, Santander is entitled to withdraw uneconomic products. The Consumer Rights Act 2015 does not apply as B is a limited company, not a consumer.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website