Not upheld: Service failures generally complaint against Santander UK Plc

Decision detail

Summary

Mr E complained that Santander unfairly removed the 'free banking forever' feature from his business current account, which he opened in 2008 under that promise. The account was migrated twice (2010 and 2015) and Santander notified him in 2025 that it would be withdrawn and replaced with a chargeable account. The ombudsman found that while the marketing material clearly advertised free banking forever, the contractual terms and conditions contained variation clauses permitting changes, and that significant regulatory changes since 2008 supported the need for cost adjustments. The ombudsman concluded Santander was entitled to make this commercial decision with adequate notice and therefore did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that while the marketing material clearly advertised 'free banking forever', the contractual terms and conditions contained clear variation clauses allowing Santander to change the agreement. The ombudsman considered that all terms and conditions, not just advertised features, form part of the agreement. The ombudsman was satisfied that significant regulatory changes since 2008 supported the need for cost changes, and that the original terms explicitly referenced changes due to law and regulation. The ombudsman also found that Santander is entitled to make commercial decisions about product viability and can withdraw products with sufficient notice.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website