Not upheld: unfair default registration complaint against Capital One (Europe) plc

Decision detail

Summary

Mr G complained that Capital One unfairly registered a default on his credit file in March 2024 after he entered a payment plan with a debt management charity but could not maintain payments. Mr G claimed he did not receive the default notice and that given his vulnerable financial position, the options presented were too restrictive. Capital One had issued a default notice on 12 February 2024 requiring payment by 11 March 2024, and Mr G called them the same day and was informed of the default and offered a £33 monthly payment plan, which he said he might be able to afford but needed to think about. Mr G did not contact Capital One again before the deadline and the default was registered on 16 March 2024. The ombudsman found the complaint not upheld, determining that Mr G was adequately informed of the default and its consequences during the phone call and failed to take action by the deadline, and that Capital One had shown forbearance in their dealings with him.

The Ombudsman's reasoning

The ombudsman found that although Mr G disputed receiving the default notice, he was informed of its contents and consequences during a phone call on the same day it was sent. The call handler clearly explained that a payment or solution was needed by 11 March 2024 to stop the default, and Mr G acknowledged this. Capital One had shown forbearance by working with Mr G through a debt management charity and offering alternative payment arrangements. Mr G had been in arrears for six months before the default notice was issued, which was a serious breach of the credit agreement terms. The ombudsman was not persuaded that receiving the physical default notice would have changed the outcome, as Mr G had already been informed of the default and its consequences during the call and failed to take action by the deadline.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website