Partially upheld: delays in removing default marker from credit file; administrative error in processing removal complaint against Capital One (Europe) plc

Decision detail

Summary

Mr C complained about delays in removing a default marker from his credit file relating to a Capital One credit card account. Capital initially assured Mr C the default would be removed within eight weeks but failed to do so, and later acknowledged a processing error. It took approximately one year from the initial assurance for the default to be actually removed in February 2026. Capital offered £200 compensation in September 2025 and a further £100 in January 2026. Mr C rejected the additional £100 offer and sought an ombudsman decision. The ombudsman upheld the complaint in part, finding the £300 total compensation fair and reasonable for the delays and distress caused, and ordered Capital to pay the additional £100 already offered.

The Ombudsman's reasoning

The ombudsman found that neither party disputed the default should have been removed or that there were delays in doing so. The dispute centred on the appropriate remedy. Capital assured Mr C in January 2025 that the default would be removed, but it took approximately one year to complete due to a processing error on Capital's part. Mr C had to continue raising concerns and would have experienced distress and inconvenience. While Mr C claimed the default affected his mortgage interest rate, no evidence was provided to support this claim. The ombudsman considered that £300 total compensation (£200 already paid plus £100 additional) was fair and reasonable for the delays and distress caused, without evidence of significant financial, material, or emotional impact justifying a higher amount.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website