Not upheld: unfair account conversion and application of transaction charges during introductory period complaint against Santander UK Plc

Decision detail

Summary

Mr K complained on behalf of his limited company K that Santander unfairly converted K's business account to a new product and applied transaction charges during the 18-month introductory period when the account should have been free. Santander had failed to apply transaction charges for approximately 10 months due to a technical error, and when the account was converted to the Classic Account in October 2025, these charges were corrected and applied prospectively. The ombudsman found that the introductory offer applied only to account maintenance fees, not transaction charges, which were clearly detailed separately in the Key Facts Document. Santander provided appropriate notice of the conversion and was entitled under its terms and conditions to make these changes. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that the introductory offer explicitly applied only to 'the fee for maintaining the account' and not to transaction charges, which were separately listed and clearly explained in the Key Facts Document. The distinction between account maintenance fees and transaction charges is standard banking practice and not uncommon. Santander provided clear notice of the account conversion and new charges at least two months in advance, and the terms and conditions explicitly permitted such changes. The ombudsman noted that K actually benefited from Santander's error and would be in a worse position if charges were refunded.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website