Not upheld: unfair account closure and default complaint against Capital One (Europe) plc

Decision detail

Summary

Mrs A complained that Capital One unfairly defaulted and closed her credit card account without proper notification. She had requested a payment holiday in March 2021, after which her direct debit was cancelled. In July 2021, she contacted Capital One citing personal difficulties and was granted breathing space, though payments were still required. After six months without payment, Capital One closed and defaulted the account in February 2022. Mrs A claimed she never received the relevant communications and only complained in October 2025. The ombudsman found Capital One acted fairly, as it sent multiple communications to her current address, likely explained payment obligations, and the account met the standard for default at six months in arrears. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Capital One acted fairly because: (1) it properly cancelled the direct debit and notified Mrs A she needed alternative payment arrangements; (2) it sent the breathing space email and likely explained payment obligations during the call, even though Mrs A claimed non-receipt; (3) it sent multiple follow-up communications about missed payments; (4) the account was six months in arrears, meeting the ICO standard for default; (5) Mrs A's address on file was current when letters were sent; and (6) Mrs A herself confirmed awareness of the situation in December 2021 when she called about extending breathing space.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website