Santander UK is facing a growing backlash from small business owners after introducing charges to business accounts that were previously guaranteed to be “free for life” — prompting accusations of broken promises, misleading conduct, and possible regulatory scrutiny.
An open letter submitted this week to Santander’s top executives, and shared with Business Matters, outlines the growing frustration among SMEs who feel misled after banking with Santander for more than a decade under what they believed was a permanent fee-free agreement.
“This wasn’t a vague marketing statement — it was a binding commitment,” writes Steve Richardson, managing director of Full Production Ltd, who opened a business account with Santander in 2010 based on the written guarantee. “To revoke that commitment now, more than a decade later, under the guise of internal product migration, is both misleading and ethically questionable” .
Santander’s original marketing material from 2010 offered “Free Business Banking, For Life”, with a caveat that charges would only apply if laws or banking regulations changed. In the absence of any such change, customers assumed their accounts would remain free.
That promise was tested in 2012, when Santander attempted to reclassify accounts and impose fees. After public pressure, the bank reversed course and upheld the original free-for-life commitment — an act widely praised at the time by consumer groups and the press .
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.
