Not upheld: account default and termination; payment method restrictions; information request handling complaint against Capital One (Europe) plc

Decision detail

Summary

Miss M complained that Capital One unfairly defaulted her two credit card accounts and restricted her payment options. She had been in sustained arrears from November 2024 with no payments made, and failed to respond to default notices issued in April 2025 with a 5 May 2025 deadline. The ombudsman found Capital One's decision to default complied with ICO guidance permitting defaults after three months arrears. Although Miss M could not pay by phone due to account closure, Capital One provided alternative methods including standing orders and bank transfers. The ombudsman also found Capital One responded reasonably to Miss M's DSAR and other information requests in accessible formats. The complaint was not upheld and no remedy was ordered.

The Ombudsman's reasoning

The ombudsman applied ICO guidance which permits defaults after three months arrears and expects them by six months. Since Miss M had no payments for five months and failed to respond to the default notice deadline of 5 May 2025, Capital One's decision to default was reasonable and compliant with industry standards. Regarding payment difficulties, the ombudsman found Capital One provided alternative methods (standing orders and bank transfers) despite phone payments being unavailable. For the DSAR, Capital One responded timeously and in accessible formats. The ombudsman concluded Capital One acted reasonably throughout and no errors were found.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website