Upheld: Account administration errors complaint against Capital One (Europe) plc

Decision detail

Summary

Miss H complained that Capital One incorrectly advised her Direct Debit would remain active during a breathing space period for financial difficulty, then failed to clearly communicate its cancellation, resulting in a missed payment being reported to her credit file. Although Capital One sent a cancellation notice on 30 September 2025, the ombudsman found this insufficient given that a successful payment had been taken on 28 September and subsequent communications did not clearly explain that manual payments were now required. The ombudsman concluded Miss H reasonably relied on the incorrect information and that Capital One bore responsibility for failing to correct the misunderstanding, particularly given her vulnerability due to financial difficulty and health issues. The complaint was upheld, requiring removal of the missed payment marker and payment of £150 in total compensation.

The Ombudsman's reasoning

The ombudsman found that while Capital One's application of breathing space and account restrictions were reasonable, the handling of the Direct Debit was unfair. Capital One provided incorrect information that the Direct Debit would remain in place, which was reinforced by a successful payment on 28 September. Although Capital One sent a cancellation notice on 30 September, this standalone communication was insufficient to correct the misunderstanding, particularly given Miss H's financial difficulty and health issues. Subsequent communications about the breathing space did not clearly emphasise that manual payments would now be required. The ombudsman concluded that Miss H reasonably relied on the incorrect information and that Capital One bore responsibility for failing to clearly correct this misunderstanding. The missed payment resulted from this failure rather than Miss H's negligence.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website