Not upheld: account closure failure, default registration, credit file reporting, communication about arrears complaint against Capital One (Europe) plc

Decision detail

Summary

Mr S complained that Capital One unfairly defaulted his credit card account when he intended to close it and failed to communicate fairly about the default. Mr S claimed he made a final payment in June 2024 to clear his balance and that Capital One sent the default notice to an old address, leaving him unaware of the issue. The ombudsman found that Mr S's £50 payment was insufficient to clear the £216.26 balance, and that Mr S continued using the card in July 2024, indicating awareness the account remained open. Capital One communicated about arrears through multiple channels including email, text, and post, and the default was registered in accordance with ICO guidance. The ombudsman did not uphold the complaint, finding Capital One had acted fairly and Mr S had fair opportunity to address the arrears.

The Ombudsman's reasoning

The ombudsman found that Capital One communicated fairly with Mr S about his account status through multiple channels (email, text, post) using contact details they held. Mr S had a fair opportunity to address his missed payments before the default was applied. The default was registered in accordance with ICO guidance, which expects defaults to be registered when accounts are three to six months in arrears. The single default marker with start date 8 February 2025 is correctly reported and will remain on the credit file for six years, with monthly repeating 'D' entries being standard practice. Mr S's failure to update his postal address after moving house meant he did not receive the default notice by post, but he received the Notice of Sums in Arrears by email and had prior communications about arrears.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website