Not upheld: Account administration errors complaint against Santander UK Plc

Decision detail

Summary

Mr H, representing a limited company P, complained that Santander migrated P's business current account from a fee-free account to one with a £9.99 monthly charge. The account had been opened in 2009 with marketing promising 'free banking forever' but was taken over by Santander in 2010. In July 2025, Santander notified the customer of migration to a new account with fees effective October 2025, providing over 60 days' notice and offering alternatives including account closure or switching. The ombudsman found that while marketing material promised free banking, the contractual terms and conditions at all times contained clauses permitting changes, and Santander provided adequate notice and reasonable alternatives. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that while the marketing material promised 'free banking forever', the contractual terms and conditions at all times contained clauses permitting Santander to make changes. The terms and conditions, not marketing material, form the basis of the contractual obligation. Santander provided adequate notice (over 60 days) and offered reasonable alternatives. Significant regulatory changes since 2002 have increased banking costs, and Santander as a commercial business is entitled to make decisions about product viability. Even if marketing material formed part of the contract, Santander could still change it under the variation clauses.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website