Editor’s note: This article was first published in February 2011. Banesto was fully absorbed into Banco Santander in 2013 and the brand no longer exists, and Emilio Botín died in 2014. The Belén Esteban jokes are 2011 Spanish celebrity-gossip references.
Ever since we published our article on the pros and cons of becoming a bank’s collaborating agent (a self-employed agent who sells a bank’s products under contract), its comments section turned into a sort of forum for current and former Banco Santander agents who feel deceived and cheated. It’s become clear that working as an official Banco Santander collaborator is not a good business idea.
But wait! Now we’re getting emails asking for information about becoming a Banesto collaborating agent or buying a Banesto franchise. Some people may have forgotten that Banesto and Santander are “cut from the same cloth”, since both belong to Emilio Botín, that wealthy gentleman to whom the saying “you’ll never get rich by working honestly” applies. In this case, Emilio Botín is a great businessman, and although he has worked honestly, he has grown rich under a business model that benefits no one but the bank’s own financial interests.
Our commenters, current and former Banco Santander agents, have more or less made it clear that they accept there’s nothing they can do against the bank, because it would crush them in court, not least because everything is tightly signed and sealed.
I looked into the complaints filed by Banesto agents, former agents and franchisees and, to my surprise, there have indeed been some lawsuits.
Specifically, in Cantabria in 2007, a Banesto franchisee took the bank to court, asking for recognition of his right to be on the payroll as a bank employee. A reasonable claim: a man who has sold the bank’s products for years and then has his office (his business) taken away would be perfectly qualified to work at the bank’s own counter on employee terms.
This man had bought a bank franchise from Banesto, paying €9,000 at the time. That was cheap, because the business model later became so well marketed and in such demand that they were charging up to €20,000 to become a franchisee.
The case ended the way the other 20 lawsuits against the banking empire did: none of them reached a final ruling, because some people made sure of that. Few lawyers are able to take on a bank’s legal department; besides, the process is very expensive and can take a long time.
However, a law firm in Andalusia explains to us why none of these lawsuits has ever reached a final judgment:
“They haven’t reached a final judgment because, as a rule, the financial situation of a bank’s collaborating agent or franchisee is precarious and the legal process is expensive. Even once a ruling was handed down, it couldn’t become final, because the bank could lodge various appeals, making the process more expensive again and dragging it out.
In short, neither a humble law firm like mine can afford it, nor can the agent pay the cost of the trial. Besides, there’s no hope of a ruling in the agent’s favour, for the simple reason that he accepted the conditions the bank set when he became a collaborating agent or franchisee.
A bank will never take an action for which it could be prosecuted.”
In short, the bank commits abuse for the simple reason that the law allows it to. That said, it’s not all bad news, because all these cases have something in common: every complaint was filed individually, so the process is expensive and the case doesn’t attract the media (who are busy with the new partner of TV celebrity Belén Esteban).
If these agents, former agents and bank franchisees managed to join forces, they could bring a high-profile case with a real chance of winning, because there’s strength in numbers. In this case, it would also cut the legal costs, making the case a plum for any law firm.
As long as these agents don’t unite, it’s as if they were tolerating the bank’s abuses, because actions speak louder than words. It’s very easy to silence one person, but much harder to silence a group.
Besides, a judge who receives a case brought by one person against a company thinks of an isolated case that could be down to a personal quarrel. But if a judge sees 100 people taking on the same company, it’s no longer a case but a cause, and just causes end up having an effect: the noise wakes some people up and annoys others, and with a bit of luck you’ll catch the media’s attention and they’ll leave Belén Esteban alone.
And if your question is still whether becoming a collaborating agent or buying a Banesto franchise is a profitable business idea, the answer is that you’d be better off working with an NGO: you’ll earn a little less, but you’ll have fewer headaches and stay well away from depression.
Featured image: Zarateman, CC0 1.0, via Wikimedia Commons.
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