Not upheld: unfair contract variation and terms change complaint against Santander UK Plc

Decision detail

Summary

L, a business customer of Santander since June 2011, complained that Santander unfairly migrated its account from a fee-free product to one charging £9.99 per month in October 2025, claiming the account was promised to be 'free forever'. Santander argued the terms and conditions had always allowed for changes with notice, no documentation showed L received marketing guaranteeing perpetual free banking, and regulatory changes justified the fee. The ombudsman found the contractual terms clearly permitted changes, L had benefitted from 14 years of free banking despite no contractual guarantee, adequate notice was provided, and free business banking is not typical industry practice, therefore upholding Santander's right to implement the change.

The Ombudsman's reasoning

The ombudsman found that the terms and conditions applicable to L's account from its opening in 2011 contained clear provisions allowing Santander to make changes with notice. While L received the benefit of free banking for 14 years, the contractual terms never guaranteed this would continue indefinitely. Marketing material, even if received, does not override the contractual terms and conditions. Santander provided adequate notice (over 60 days) as required. Free business banking is not typical industry practice, and Santander was entitled to make the commercial decision to consolidate accounts and ensure fair treatment across its customer base. The regulatory environment had changed significantly since 2003, justifying the need for fee-based accounts.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website