Upheld: Mortgage administration / arrears handling complaint against Capital One (Europe) plc

Decision detail

Summary

Miss S complained that Capital One gave her incorrect and misleading advice regarding her credit card account restriction. During a 17 December 2025 call, an agent incorrectly advised that Miss S had only missed 3 payments and had another month before restriction, when she had actually missed 4 payments and a restriction letter was issued 3 days later. On 10 January 2026, Miss S received conflicting advice from two agents about payment requirements and plan terms. The ombudsman upheld the complaint, finding the advice was incorrect and confusing, but determined the account would have restricted anyway due to Miss S's inability to afford any payment plan. Capital One was ordered to pay an additional £75.00 compensation beyond the £50 already provided.

The Ombudsman's reasoning

The ombudsman found that Miss S was given incorrect and misleading advice across multiple calls. On 17 December 2025, the agent incorrectly stated Miss S had only missed 3 payments when she had actually missed 4, leading her to believe she had another month before restriction. The agent should have been aware of imminent restriction risk given the letter was issued 3 days later. On 10 January 2026, the first agent failed to offer alternative options when Miss S said she couldn't afford the £284.08 payment, while the second agent provided conflicting information about payment plan terms. Although the incorrect advice caused distress and frustration, the ombudsman found the impact wasn't serious because Miss S was unable to afford any payment plan offered, meaning the account would have restricted regardless of the advice given.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website