Not upheld: default recording and credit file reporting complaint against Capital One (Europe) plc

Decision detail

Summary

Mrs S complained that Capital One incorrectly recorded defaults on her credit file while she was in hospital and subsequently bedbound due to medication effects. Capital One had issued default notices in September and October 2025 after Mrs S failed to pay amounts specified in the notices. The ombudsman found that Capital One followed proper procedures and was unaware of Mrs S's medical circumstances, as she had not notified the firm of her illness or inability to open post. Although sympathetic to Mrs S's situation, the ombudsman noted she had contacted Capital One in May 2025 to discuss her account and arrange breathing space, and the default notices were sent several months after her discharge. The complaint was not upheld as there was no evidence of error in Capital One's default recording.

The Ombudsman's reasoning

The ombudsman found that Capital One issued the required default notices and followed proper procedures before defaulting the accounts. Although sympathetic to Mrs S's medical circumstances, the ombudsman noted that Mrs S did not notify Capital One of her illness or inability to open post, and she was able to contact Capital One in May 2025 to discuss breathing space. The default notices were sent several months after her hospital discharge. Since Capital One was unaware of Mrs S's circumstances, it had no obligation to make adjustments. Lenders are obliged to report accurate information to credit reference agencies, and the ombudsman found no evidence of error in the default recording.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website