Not upheld: Account administration errors complaint against Santander UK Plc

Decision detail

Summary

Mr N, a sole trader, complained that Santander unfairly migrated his free business current account to a fee-paying account (£9.99 per month) in October 2025, claiming he was promised 'free banking forever' when opening the account in 2010. Santander argued that its terms and conditions have always permitted changes with notice, no documentation from 2010 referenced free banking forever, and the migration was part of consolidating its business account range. The ombudsman found that the contractual terms and conditions consistently allowed Santander to make changes with notice, that Mr N received more than the required 60 days' notice, and that free business banking is not typical industry practice. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Santander's terms and conditions have consistently allowed for changes to be made with notice since the account opened in 2010. While Mr N benefitted from free banking for 15 years, the contractual terms did not guarantee this would continue indefinitely. The ombudsman noted that free business banking is not typical industry practice among major retail banks, and Santander provided more than the required 60 days' notice. The ombudsman also considered that significant regulatory changes since 2003 have increased the costs of offering business accounts, and that Santander is entitled as a commercial business to make decisions about product viability. The ombudsman rejected reliance on marketing materials over contractual terms and conditions, and found that Santander's 2012 reversal of a fee decision does not prevent it from implementing fees now.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website