Not upheld: unfair account migration and introduction of fees complaint against Santander UK Plc

Decision detail

Summary

V, a business customer, complained that Santander unfairly migrated its fee-free business current account to a new account with a £9.99 monthly fee in 2025, despite the account being marketed as 'free day-to-day banking forever' when transferred to Santander. The ombudsman found that while the marketing promise was genuine, all versions of the account's terms and conditions from 2007 onwards explicitly allowed Santander to vary fees and terms, subject to notice. Santander provided more than the required 60 days' notice and was entitled to rely on these contractual provisions to migrate the account and harmonise its fee structure. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman concluded that while the marketing promise of 'free banking forever' was genuine, the contractual terms and conditions applicable to the account from its inception explicitly allowed Santander to vary fees and terms, subject to providing notice. The terms and conditions remained consistent across all versions and were referenced in the Key Facts document. Santander provided more than the required 60 days' notice. The ombudsman found it fair and reasonable for Santander to rely on these contractual terms to harmonise fees across customer groups and to withdraw uneconomical products.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website