Free Banking Stays Free at Santander
Santander has announced that it now has no plans to withdraw its “free banking forever” account from small business customers.
The bank had previously said it was within its right to change the terms of the account, meaning that £230,000 customers would have faced charges of between £7.50 and £12.50 per month
But less than two months after first announcing the change, it has reversed its policy.
Rather than purely customer dissatisfaction at the proposed changes, it also appears that legal advice taken by the bank highlighted possible future challenges, given that much of the original marketing material was based around the free banking forever mantra.
In addition, for each and every customer complaint received by the Financial Ombudsman Service in relation to the move, the bank would have incurred a fee of £500, leading to a total bill of over £100 million.