Not upheld: Goods and services under S75 complaint against Santander UK Plc

Decision detail

Summary

E, a limited company, opened a business account in 2005 marketed as offering 'free banking forever'. After over 20 years of free banking, Santander notified E in July 2025 of migration to a fee-paying account (£9.99 monthly) in October 2025. E argued this breached the original promise of free banking forever. The ombudsman found that while the marketing literature promised free banking, the contractual terms and conditions have consistently allowed Santander to make changes with notice. Significant regulatory changes since 2005 have increased compliance costs, and free business banking is no longer typical. Santander provided over 60 days' notice as required and is entitled to withdraw uneconomic products. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that while the account was marketed as 'free banking forever', the contractual terms and conditions have consistently allowed Santander to make changes by providing notice. The terms and conditions are the binding contractual obligations, not the marketing literature. Significant regulatory changes since 2005 (anti-money laundering, counter-terrorism financing, fraud prevention) have substantially increased banking costs. As a commercial business, Santander is entitled to withdraw uneconomic products. The firm provided adequate notice (over 60 days) and offered reasonable alternatives. The 2012 reversal of a fee decision does not prevent Santander from implementing fees now.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website