Not upheld: default recording and account management complaint against Capital One (Europe) plc

Decision detail

Summary

Mr N lost his job in 2024 and fell into arrears on his Post Office credit card account. He made reduced repayments of £5-£10 per month from February 2025 onwards. Capital One informed him multiple times that his account would default if he did not pay sufficient amounts and issued a default notice on 14 July 2025 requiring full repayment of £152.39 by 11 August 2025. Mr N claims a May 2025 letter reassured him the account would not default and that he did not receive the default notice. The ombudsman found Capital One was entitled to default the account as the arrears remained unpaid after the deadline, Mr N was given reasonable notice of the default, and Capital One was not responsible for ensuring receipt of the default notice.

The Ombudsman's reasoning

The ombudsman found that Mr N was given reasonable notice through multiple calls that his account would default if he did not pay sufficient amounts to cover arrears. The May 2025 letter did not confirm acceptance of a repayment plan that would avoid default, as the calls made clear the £10 monthly payment was insufficient. The default notice in July 2025 clearly set out the consequences of non-payment. Although Mr N claims he did not receive the default notice, Capital One provided evidence it was correctly addressed and was not required to ensure receipt. The arrears were not repaid in full by the deadline, so Capital One was entitled to default the account. The timing of the default (August 2025, approximately 7 months after arrears began) was reasonable under ICO guidance.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website