Can you bank on (customer) care from Santander?

(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.

Watchdog Viewers' Responses:

I have now had to go to the financial ombudsman after waiting 16 weeks for a response to my complaint, I am disgusted with Santanders level of service. I am now in the process of finding a bank account that offers me an account manager rather than a foreign call centre and 'customer services' that just doesn't want to help

Anonymous Watchdog Viewer

I had an account with Abbey for over 15 years with no problems whatsoever.... then Santander came along - within the month someone in the branch had changed my address on my account and I hadn't even moved!! This caused me loads of problems in rectifying THEIR mistake. What a useless bunch they are.

J.Molloy

I'd like to tell you about a recent experience I had with Santander. After agreeing to use them for a loan to finance a new car, I found a much better deal elsewhere. A few days later I went back in to my local branch to tell them and I was told to speak to a young lady behind the counter to sort out getting the money taken back out of my account. When I spoke to her, she told me that she couldn't do it from there and that I should phone the customer service line. When I asked if the delay would cause any problems, I was told not to worry as there was a 28 day "cooling off period."

Due to the fact that I was moving a lot of money around between accounts (I sold 2 cars and had to wait for the money to clear in to my account before purchasing the new one), I left it until the following week to call the customer service line. When I explained the situation, I was told that I would have to pay a penalty as I'd gone over the 14 day cooling off period. After explaining what the lady in the branch had told me, I was told that there was nothing I could do as I had no proof of the conversation and I was hit with a bill for £450.

Stephen Bishop, Surrey

Im currently having problems with my local branch as all i wanted to do was register a power of attorney with them so i could continue to assist my sick uncle with his banking.

After several visits to the branch to see why nothing has been done with regard to the forms and ID paperwork they have addmitted they have lost all paperwork.

Thats enough paperwork for someone to easily steal not just one but two identities. Santanders answer - nothing to do with us its simply just got lost!!!!

Does this company not bother with data protection laws????

Richard Hobson

I opened an account with Santander in December last year to take advantage of a student bank account deal. I've since had to go into branch six times to sort out problems with my account. Until last week no card or pin number had been attached to my account nor had a cheque book or any internet banking facilities. It wasn't until last week when I went into branch and threatened to close the account that something got done. Consequently they had to close my account and open a new one. I spent nearly 10 months with a redundant account that I couldn't use and now I can't take advantage of the student deal! Thanks.

Anonymous Watchdog Viewer

After my mother died I asked to take her name off our joint account. After filling in a 5 page form at my mothers branch in Watford, I was assured that it would not affect my account. 2 days later my card was retained by the atm and was told at the branch that my account was frozen as it appeard both names appeard as deceased. I have been waiting 3 weeks now for a new card which was not order for me. I have send Santander a letter of complaint....waiting for card and after all the trauma of my mothers death the bank has just made it all the more difficult.

Jacky Colling

I have been a customer of Santander and previously Abbey for the last 15 years and have nothing but praise for the service I have received

John Nash

I had been with the Abbey for over 20 years but have in the last six months closed all three of my accounts as have my 4 children. Since being taken over their customer service has been appalling - I wanted to open a new account with some savings, I asked for an appointment and was told I have to wait three weeks to see someone. I had been charged on a credit card I didn't have, had money taken from my account by mistake and their telephone banking is dreadful. And I am afraid there is more than 1% of customers that have had problems with them - never again will I bank with Santander!!

Nicky Veitch, Maidstone, Kent

We've had a terrible few weeks with Santander ... waiting, waiting, waiting for new E-Banking details. THEY sent a new debit card to us when the last one expired... but we used the old one for logging into our online banking. Phoned them up and after 45mins on the phone finally got them to say they'd sent new logging in details. No details arrived ... I had to phone up again. New details sent... apparently.. but took so long for them to turn up! Received them today (23rd Sept) ... but the letter was dated the 15th?! They must have a very slow postal department!

Oh, and don't get me started on their phone service! Everytime I ring up
- and give all my personal details, card details, mothers maiden name, secret answer to secret question - They then ask for a recent transaction on my card ... older than 3 days ... and cos I was put on the spot and couldnt remember ... they said 'No... we can't go any further!'. ARGH!!!

Paul & Bev Hill

I moved to Greece and informed satander not to change my account as I will be abroad and they cut off my card and sent me a new card to my old address in England, they kept calling my parents about fraud on my card but I had informed them that I was away and using my card!
Santander take the mick as this isn't the first time they have messed me around and nothing ever happened when I was with Abbie National

Anonymous Watchdog Viewer

In response to an invitation from Alliance & Leicester, in early August I moved my 2 Santander accounts over to my Alliance & Leicester online banking facility. A few days later the account titles and numbers appeared on the 'summary' screen, but I could not access the account balances as these were shown as 'unavailable'.

Since 18th August, I have called A&L 5 times (totalling over 1 hour on the phone) and sent 3 e-mails. Despite promises of "correcting the error whilst we speak", and "our technical team guarantee to action issues in 3 days" I have had no replies to my e-mails but have received a standard written letter dated 25th August acknowledging my complaint. Needless to say the matter has still not been resolved.
Not a 'big deal' in comparison to some people's problems, but annoying nonetheless and costing me time and money trying to sort it out.

M Murphy

Dear Watchdog, I am watching your programme with great interest this evening. I have had nothing but poor service from Santander. It is some conciliation that I am not alone and I will be, at the earliest opportunity, changing my bank account.

Jackie from Devon

I have had a terrible experience with Santander. I went into an Altrincham branch and applied for a graduate account. I was approved an overdraft and all was fine until
the lady went to finalise the account. There was an error. This i could understand as every once in a while IT does fail us. However 6 weeks later, this glitch has still not
been resolved. Even after numerous phonecalls, and promises of being contacted in so many days (which never happens) I am still without an account. Having moved to London
from Manchester I have been left short, just for trying to take advantage of their promise of an interest free overdraft.

Anonymous Watchdog Viewer

I closed an account over 6 weeks ago and I'm still waiting for Santander to give me the remaining balance in my account. I have contacted them numerous times and every single time I have been promised the money back and still I have not received it. I have made 2 formal complaints on their web site, only 1 of which has been acknowledged but still no money. To say that most of their complaints are handled in 48 hours is a joke and they certainly do not live up to any promises they make.

The only positive is that I moved most of the money out of the account before closure otherwise I would be down a significant amount of money.

Whether I end up getting my money back or not I will NEVER have anything to do with Santander again.

Sue

They just can't do anything simple. On 2 separate occasions I have made a very basic request to move some money from my ISA account into my current account to pay for expensive furniture items. On both occasions the moved money from my current account INTO the ISA, pushing me straight past my overdraught and making my direct debits bounce. Very frustrating, and it makes me wonder what is the point in Santander if they can't even make a simple money transfer?

Sean Fitzgerald, Leeds

I was amazed by the reply of the director from Santander who said 99% of their customers are satisfied. This leaves 1% who are not, as they reportedly have 25,000,000 customers that means 250,000 are getting poor service which I would suggest is not a small number.

Mr. M. J. Taft

Watchdog viewers' responses were received between the 23/09/10 and 29/09/10.