Not upheld: declined credit applications and hard searches on credit file complaint against Capital One (Europe) plc

Decision detail

Summary

Mr B complained that Capital One declined three credit card applications made between 24 September and 5 October 2025 and left hard searches on his credit file. Mr B believed he had been pre-approved and was upset that he signed agreements and arranged direct debits before being refused. The ombudsman found that Capital One acted fairly as third-party pre-approval websites do not guarantee approval, hard searches are standard practice, and Capital One could not have known about previous applications when processing each new one. Although the ombudsman noted Capital One could have provided better support information upon decline, this did not constitute unfair treatment. The complaint was not upheld, but Capital One agreed to pay £100 as a gesture of goodwill.

The Ombudsman's reasoning

The ombudsman found that third-party websites do not guarantee credit approval, and hard searches are typical for credit applications. Capital One could not reasonably be expected to recognise multiple applications before completing a hard search. It is the customer's decision whether to apply for credit. The ombudsman noted that Mr B was aware he was making three applications within 12 days and there was no guarantee other lenders would have approved him either. While it would have been helpful for Capital One to provide more detailed information about decline reasons and signpost support, the lending decisions rest with the creditor's underwriting criteria and risk appetite. Hard searches must be reported accurately to credit reference agencies.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website