Not upheld: unfair default registration and account closure complaint against Barclays Bank UK PLC (trading as Barclaycard)

Decision detail

Summary

Mr A complained that Barclaycard unfairly applied a default to his credit card account without proper notice, despite his communication and personal hardship. He opened the account in October 2023, made on-time payments until December 2024 when he fell into arrears, and requested breathing space until end of February 2025 during a January 2025 call. After failing to repay by that date and receiving no further contact attempts (which he attributed to Barclaycard), he called again in March 2025 and was allegedly told he could pay 'as and when', which he claims was misleading. Barclaycard issued a Default Notice on 12 March 2025 and registered the default on 29 April 2025. The ombudsman found Barclaycard had followed correct procedures, sent all required communications to the correct address, made multiple contact attempts, and acted consistently with regulatory guidance, therefore not upholding the complaint.

The Ombudsman's reasoning

The ombudsman found that Barclaycard followed the correct legal and regulatory process. All required written communications clearly explained what Mr A needed to do, by when, the consequences of non-payment, and how to seek support. The Default Notice was properly issued on 12 March 2025 with no obligation for further notice before taking action. While the March 2025 call may have been misleading, Mr A had already been informed in writing of the default consequences and should have queried any apparent change to this position. Mr A was aware of his arrears since December 2024, had indicated he would repay by end of February 2025 but failed to do so, and did not contact Barclaycard to request assistance. The default registration accurately reflected how Mr A managed the account and was consistent with regulatory guidance.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website