Not upheld: Account closure without notice complaint against Capital One (Europe) Plc

Decision detail

Summary

Mr H and Mrs H complained that Capital One blocked Mrs H's credit card without notification after mail was returned, causing embarrassment when transactions were declined while shopping. Capital One explained they applied a temporary block as a security measure following returned mail and did not notify customers of such blocks under their policy. The ombudsman found Capital One followed their security procedures correctly and that firms are entitled to implement such measures to protect against fraud. Although acknowledging the distress caused, the ombudsman determined Capital One acted reasonably and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that Capital One followed their established security procedures correctly. While acknowledging the distress caused to Mrs H, the ombudsman determined that firms are entitled to implement security measures to protect against fraud, and the FOS can only assess whether procedures were followed correctly, not require changes to procedures. Capital One's policy of not notifying customers of returned mail blocks is within their discretion, and the block was promptly removed upon contact and verification.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website