Two years ago we'd hardly heard of Santander. Now they're one of the biggest banks in Britain after buying Abbey, Bradford and Bingley and Alliance and Leicester. Last month they announced plans to buy another 318 former RBS branches, and promised to recruit more staff to improve customer service. They will need to be quick, they're one of Watchdog's most complained about banks of the summer.
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Santander's advert states:
"With 90 million customers and a prudent approach to banking Santander is one of the world's strongest and safest banks".
They are huge in Spain but were unknown in Britain until a massive buying spree and Lewis Hamilton's endorsement made them a familiar High Street name. Around 25 million of us now have accounts, savings, loans or mortgages with Santander. And it's not just the adverts that are driving up customer numbers. In public Santander is proud of its customer service, on its website it has a list of promises that are designed to appeal to us. But how much do they match up to the reality? According to some of the Santander customers who've contacted Watchdog - not very well...
(Do you have something to say about this story? Tell us what you think by emailing us here. Don't forget to include 'Santander' in the subject line. Watchdog will publish a selection of viewers' comments underneath each story, both throughout and after the programme is on air. Please remember to include your name as you would like to see it published).
One of their promises says:
"If something does go wrong, we will aim to put it right as soon as possible, keeping you informed and keeping our promises".
But that's not what Alison Standing found. Her mother took out an £8,000 loan with Abbey in February 2008. Fourteen months later, her mum fell ill and had to go into a nursing home. Alison told us:
"All her money, all her income, her pension was then going towards paying for the nursing home every month so she didn't have any income left over. I then contacted the Abbey who were then known as Santander, I explained what was happening and said that she was very poorly, and we needed some help".
Alison asked Santander to cancel the remaining amount left on the loan which was a request that they were obliged to consider under UK Lending Codes. After five months and repeated calls and letters, Santander delivered some good news as Alison revealed:
"In October they said it could be written off. I was very happy actually because I thought at last we are getting somewhere. I told my stepdad and said brilliant, they are helping us. That was really good and that was it as far as I was concerned".
Sadly, this wasn't to be the case. Alison's mum died on Christmas Day last year. Three weeks later a debt recovery firm sent a letter threatening to take her to court for non-payment. Santander apologised and sent Alison £120 to compensate. But in June this year, they sent out another demand for payment on her mum's former loan. Another £100 compensation followed but Alison still hadn't received confirmation that the account was closed. Alison said:
"I never realised they would be so difficult to deal with, they're meant to be one of the best companies in the world. You see them advertised every day on the television. Numerous times a day, and I've never known a company like them. I would never recommend them to anyone ever".
So much for that Santander promise then, but what about this one:
"We will aim to handle your accounts smoothly and efficiently at all times".
We went to meet Frank Cox who opened an Abbey account 14 years ago. In 2009 he ordered a new Santander credit card. But despite setting up a direct debit on his new Santander bank account, earlier this year he started receiving calls. Frank told us:
"The first call was to say that I'd missed a payment and could I make the payment now. Or there would be a charge, a late payment charge with interest, and I could settle this if I gave the man £30".
Frank then called the bank who assured him the direct debit arrangement was in place. But as Frank told us the monthly demands for payment from Santander's credit card department just kept coming:
"I got it again in April, and then again in May and then finally in June. I thought I ought to do something about it, and entered a formal complaint. I still have this great fear that the problem has not been resolved. I have no confidence yet whatsoever".
So it seemed Santander's bank and credit card companies weren't talking to one another and Frank was being pursued for debts he didn't owe. It certainly didn't seem Santander were smooth and efficient.
Another Santander promise is: "We will always aim to understand your financial needs and offer products and services which will benefit you".
Well, this one could be true because if you're not happy with the products and services provided, you can always leave the bank and take your money with you, can't you?
Robert and Patricia Elliott tried to transfer their individual savings accounts, or ISAs, from Santander to the Halifax earlier this year because they weren't happy with the interest rate they were getting on their £88,000 savings. It should have been straightforward but after several weeks and repeated requests, Halifax were still waiting for the necessary paperwork from Santander. Robert told us:
"They still had no response, the Halifax again wrote to me saying they couldn't get anything back, they informed Santander that they were now in breach of HMRC's guidelines".
These guidelines state that all ISA transfers should take no more than 30 days. But Santander appear to break this repeatedly and for Robert a process which should have taken a matter of days eventually took two months and he lost approximately £365 in interest. Robert added:
"This is the first time in any bank we've ever dealt with that we've had these problems and as a top-liner, it's my money and I want my money when I want it".
It could be said that Santander have recognised some of the problems we've featured, because they've announced they're recruiting new staff to deal with customer service. However, two years ago, their Chief Executive publicly promised his bank was going to focus on, yes, customer service. So instead of talking about it... isn't it time they just got on with it?
Santander response
We would like to apologise to anyone who we've let down. We are committed to providing all of our customers with the best possible service.
We know we need to do more - and we are determined to do so. The good news is that we are making progress in how we deal with customers when things do go wrong. For instance, the number of our customers that complained to us is down 9% in the first half of this year and the number that went to The Financial Ombudsman Service in the first half of this year was lower than that seen at most of the major UK banks. Of these cases, only one in five is upheld against us. This compares to an average amongst the big banks of one in two.
This improvement has been made at the same time as we have been bringing together three banks (Abbey, Alliance & Leicester and Bradford & Bingley) over the last 18 months, and whilst this has caused some disruption to our service, the vast majority (99%) of our customers have not had reason to complain.
But of course, this isn't about the 99% who receive the service they require. The 1% that do not receive the service they want are every bit important to us and this is why we have set up an specific email address for any Watchdog viewer that wishes to contact us. Please send emails to watchdog@santander.co.uk and we will look into every case.
We want to continue improving, and this is why we have created a 1000 extra customer service positions in branches and call centres to help reduce queues and improve our service.
Whilst customer satisfaction for banks in general has fallen over the last few years, at Santander it has remained broadly consistent. Over 8 out of 10 of our customers are satisfied, with less than 1 in 10 unsatisfied. During this time, we have brought together three banks. It is important to remember what the 'new' bank (made up of Alliance & Leicester, Bradford & Bingley and Abbey) will provide to 25 million customers:
- 1300 branches;
- One computer system with a single customer view; and,
- Access to more 'best buy' products than any other UK bank.
We can only offer this because of the changes we have made. We have continued to invest heavily in the UK, not only through supporting banks that could have fallen into state ownership but also through continuing to lend to consumers and small business throughout the downturn.
Putting all that aside, we would like to reassure Watchdog's viewers that we are absolutely committed to continuing to improve service. It is only by combining good service with our 'best buy' products that we can continue to challenge the other banks.
All of our staff who deal with customers use the same computer system. This system gives us a view of all of the customer's dealings with the bank. Whilst we cannot rule out the occasional human error, our customer service staff in call centres and branches are dedicated to providing good service.
Service quality is built into how we measure the performance of all of our staff and directly linked to pay. We measure it in a number of different ways, including: 20,000 customer interviews each month; mystery shopping exercises in branches and call centres; and, telephone calls with customers who have bought a product from us recently.
We are one of only three banks that have adopted electronic transfers of ISA funds. This is faster, safer and surer than sending cheques between banks. As a bank that had the market leading cash ISA in 2010 and one of the most competitive cash ISAs in 2009, we would, of course, like all the other ISA providers in the UK to make switching simpler by adopting this technology.
ISA transfer - electronic bank to Santander:
Currently we process these from receiving the instruction to clearing the funds in the new account within 7 working days. In the 2010 ISA season - when we saw record volumes - this averaged 19 days.
ISA transfer - non-electronic bank to Santander:
Currently we process these in 10 days. In this year's ISA season, this averaged 22 days.
ISA transfer - within the Santander Group:
Where the customer transfers the ISA in branch, this happens on the same day. If the transfer is more complex, perhaps involving multiple accounts, the processing time is currently 4 days. In this year's ISA season, this averaged 9 days.
It is important to note that because of the paper based process which relies on mail for exchange of data between banks, there will be cases whereby mail delays or paperwork errors will extend the time for individual cases.
Statements on the cases featured on Watchdog
Mrs Standing and Mrs Dudeney (deceased)
We have contacted Mrs Standing since she approached Watchdog to apologise for any confusion and distress that we have caused.
When Mrs Standing first approached us to advise us that her mother was severely ill, we did the right thing by confirming that we would write off the outstanding loan. We confirmed this in writing to Mrs Standing, so that she would not have an additional worry at a difficult time.
Unfortunately due to a human error, the details were not removed from our system and passed to a debt collection company. The company has been informed of our error and we have amended our records to reflect this.
Mr Cox
We have contacted Mr Cox and apologised for the confusion caused. An administrative error meant that the direct debit from Mr Cox's current account to his credit card failed. We have ensured that our error has not led Mr Cox to being out of pocket. We have undertaken a full review and will be training staff if needed to ensure this sort of error doesn't happen again, if at all possible.
Mr and Mrs Elliott
We have contacted Mr and Mrs Elliott to say sorry for the delay in transferring their ISAs. We have processed the request and ensured that the Elliott's are not out of pocket because of our error. The error occurred as the Elliotts were given an incorrect address to send their application to. We have undertaken a full review and implemented the appropriate staff training to stop this sort of error happening again.
Can you bank on (customer) care from Santander?
In order to see this content you need to have both Javascript enabled and Flash installed. Visit BBC Webwise for full instructions. If you're reading via RSS, you'll need to visit the blog to access this content.
Santander's advert states:
"With 90 million customers and a prudent approach to banking Santander is one of the world's strongest and safest banks".
They are huge in Spain but were unknown in Britain until a massive buying spree and Lewis Hamilton's endorsement made them a familiar High Street name. Around 25 million of us now have accounts, savings, loans or mortgages with Santander. And it's not just the adverts that are driving up customer numbers. In public Santander is proud of its customer service, on its website it has a list of promises that are designed to appeal to us. But how much do they match up to the reality? According to some of the Santander customers who've contacted Watchdog - not very well...
(Do you have something to say about this story? Tell us what you think by emailing us here. Don't forget to include 'Santander' in the subject line. Watchdog will publish a selection of viewers' comments underneath each story, both throughout and after the programme is on air. Please remember to include your name as you would like to see it published).
One of their promises says:
"If something does go wrong, we will aim to put it right as soon as possible, keeping you informed and keeping our promises".
But that's not what Alison Standing found. Her mother took out an £8,000 loan with Abbey in February 2008. Fourteen months later, her mum fell ill and had to go into a nursing home. Alison told us:
"All her money, all her income, her pension was then going towards paying for the nursing home every month so she didn't have any income left over. I then contacted the Abbey who were then known as Santander, I explained what was happening and said that she was very poorly, and we needed some help".
Alison asked Santander to cancel the remaining amount left on the loan which was a request that they were obliged to consider under UK Lending Codes. After five months and repeated calls and letters, Santander delivered some good news as Alison revealed:
"In October they said it could be written off. I was very happy actually because I thought at last we are getting somewhere. I told my stepdad and said brilliant, they are helping us. That was really good and that was it as far as I was concerned".
Sadly, this wasn't to be the case. Alison's mum died on Christmas Day last year. Three weeks later a debt recovery firm sent a letter threatening to take her to court for non-payment. Santander apologised and sent Alison £120 to compensate. But in June this year, they sent out another demand for payment on her mum's former loan. Another £100 compensation followed but Alison still hadn't received confirmation that the account was closed. Alison said:
"I never realised they would be so difficult to deal with, they're meant to be one of the best companies in the world. You see them advertised every day on the television. Numerous times a day, and I've never known a company like them. I would never recommend them to anyone ever".
So much for that Santander promise then, but what about this one:
"We will aim to handle your accounts smoothly and efficiently at all times".
We went to meet Frank Cox who opened an Abbey account 14 years ago. In 2009 he ordered a new Santander credit card. But despite setting up a direct debit on his new Santander bank account, earlier this year he started receiving calls. Frank told us:
"The first call was to say that I'd missed a payment and could I make the payment now. Or there would be a charge, a late payment charge with interest, and I could settle this if I gave the man £30".
Frank then called the bank who assured him the direct debit arrangement was in place. But as Frank told us the monthly demands for payment from Santander's credit card department just kept coming:
"I got it again in April, and then again in May and then finally in June. I thought I ought to do something about it, and entered a formal complaint. I still have this great fear that the problem has not been resolved. I have no confidence yet whatsoever".
So it seemed Santander's bank and credit card companies weren't talking to one another and Frank was being pursued for debts he didn't owe. It certainly didn't seem Santander were smooth and efficient.
Another Santander promise is: "We will always aim to understand your financial needs and offer products and services which will benefit you".
Well, this one could be true because if you're not happy with the products and services provided, you can always leave the bank and take your money with you, can't you?
Robert and Patricia Elliott tried to transfer their individual savings accounts, or ISAs, from Santander to the Halifax earlier this year because they weren't happy with the interest rate they were getting on their £88,000 savings. It should have been straightforward but after several weeks and repeated requests, Halifax were still waiting for the necessary paperwork from Santander. Robert told us:
"They still had no response, the Halifax again wrote to me saying they couldn't get anything back, they informed Santander that they were now in breach of HMRC's guidelines".
These guidelines state that all ISA transfers should take no more than 30 days. But Santander appear to break this repeatedly and for Robert a process which should have taken a matter of days eventually took two months and he lost approximately £365 in interest. Robert added:
"This is the first time in any bank we've ever dealt with that we've had these problems and as a top-liner, it's my money and I want my money when I want it".
It could be said that Santander have recognised some of the problems we've featured, because they've announced they're recruiting new staff to deal with customer service. However, two years ago, their Chief Executive publicly promised his bank was going to focus on, yes, customer service. So instead of talking about it... isn't it time they just got on with it?
Santander response
We would like to apologise to anyone who we've let down. We are committed to providing all of our customers with the best possible service.
We know we need to do more - and we are determined to do so. The good news is that we are making progress in how we deal with customers when things do go wrong. For instance, the number of our customers that complained to us is down 9% in the first half of this year and the number that went to The Financial Ombudsman Service in the first half of this year was lower than that seen at most of the major UK banks. Of these cases, only one in five is upheld against us. This compares to an average amongst the big banks of one in two.
This improvement has been made at the same time as we have been bringing together three banks (Abbey, Alliance & Leicester and Bradford & Bingley) over the last 18 months, and whilst this has caused some disruption to our service, the vast majority (99%) of our customers have not had reason to complain.
But of course, this isn't about the 99% who receive the service they require. The 1% that do not receive the service they want are every bit important to us and this is why we have set up an specific email address for any Watchdog viewer that wishes to contact us. Please send emails to watchdog@santander.co.uk and we will look into every case.
We want to continue improving, and this is why we have created a 1000 extra customer service positions in branches and call centres to help reduce queues and improve our service.
Whilst customer satisfaction for banks in general has fallen over the last few years, at Santander it has remained broadly consistent. Over 8 out of 10 of our customers are satisfied, with less than 1 in 10 unsatisfied. During this time, we have brought together three banks. It is important to remember what the 'new' bank (made up of Alliance & Leicester, Bradford & Bingley and Abbey) will provide to 25 million customers:
- 1300 branches;
- One computer system with a single customer view; and,
- Access to more 'best buy' products than any other UK bank.
We can only offer this because of the changes we have made. We have continued to invest heavily in the UK, not only through supporting banks that could have fallen into state ownership but also through continuing to lend to consumers and small business throughout the downturn.
Putting all that aside, we would like to reassure Watchdog's viewers that we are absolutely committed to continuing to improve service. It is only by combining good service with our 'best buy' products that we can continue to challenge the other banks.
All of our staff who deal with customers use the same computer system. This system gives us a view of all of the customer's dealings with the bank. Whilst we cannot rule out the occasional human error, our customer service staff in call centres and branches are dedicated to providing good service.
Service quality is built into how we measure the performance of all of our staff and directly linked to pay. We measure it in a number of different ways, including: 20,000 customer interviews each month; mystery shopping exercises in branches and call centres; and, telephone calls with customers who have bought a product from us recently.
We are one of only three banks that have adopted electronic transfers of ISA funds. This is faster, safer and surer than sending cheques between banks. As a bank that had the market leading cash ISA in 2010 and one of the most competitive cash ISAs in 2009, we would, of course, like all the other ISA providers in the UK to make switching simpler by adopting this technology.
ISA transfer - electronic bank to Santander:
Currently we process these from receiving the instruction to clearing the funds in the new account within 7 working days. In the 2010 ISA season - when we saw record volumes - this averaged 19 days.
ISA transfer - non-electronic bank to Santander:
Currently we process these in 10 days. In this year's ISA season, this averaged 22 days.
ISA transfer - within the Santander Group:
Where the customer transfers the ISA in branch, this happens on the same day. If the transfer is more complex, perhaps involving multiple accounts, the processing time is currently 4 days. In this year's ISA season, this averaged 9 days.
It is important to note that because of the paper based process which relies on mail for exchange of data between banks, there will be cases whereby mail delays or paperwork errors will extend the time for individual cases.
Statements on the cases featured on Watchdog
Mrs Standing and Mrs Dudeney (deceased)
We have contacted Mrs Standing since she approached Watchdog to apologise for any confusion and distress that we have caused.
When Mrs Standing first approached us to advise us that her mother was severely ill, we did the right thing by confirming that we would write off the outstanding loan. We confirmed this in writing to Mrs Standing, so that she would not have an additional worry at a difficult time.
Unfortunately due to a human error, the details were not removed from our system and passed to a debt collection company. The company has been informed of our error and we have amended our records to reflect this.
Mr Cox
We have contacted Mr Cox and apologised for the confusion caused. An administrative error meant that the direct debit from Mr Cox's current account to his credit card failed. We have ensured that our error has not led Mr Cox to being out of pocket. We have undertaken a full review and will be training staff if needed to ensure this sort of error doesn't happen again, if at all possible.
Mr and Mrs Elliott
We have contacted Mr and Mrs Elliott to say sorry for the delay in transferring their ISAs. We have processed the request and ensured that the Elliott's are not out of pocket because of our error. The error occurred as the Elliotts were given an incorrect address to send their application to. We have undertaken a full review and implemented the appropriate staff training to stop this sort of error happening again.
Can you bank on (customer) care from Santander?