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Capital One - Default & Charges


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Hi All 

I have two Capital One Default entries on my report (which has now been a factor in being turned down for a job) - both accounts were low credit limit @ £200 each.


From October 2019 I entered into a bit of an issue with finances & family matters and neglected payment on the accounts until a payment plan was set up in Jan 2020 . (no excuse I know)

The main condition of the Payment Plans was that they would have to put my accounts as Default on acceptance of the payment plan as this was the only way one could be setup(?). (Default applied 22 Feb 2020)


This is despite their own website stating "Money worries can be confusing, but don't worry, you have options. There are 3 steps you should take to avoid late fees and reduce any damage to your credit rating." & "Have your credit file show that you're doing your best to get back on track" ref: https://www.capitalone.co.uk/support/struggling-with-money.jsf

Fast forward, I won a PPI battle with another company and money from that paid off both CapOne cards in Nov 2020.


Prior to Oct 19 - I've managed the accounts accordingly.
Card A - Started 2015 - credit report shows 2 missed payments (Jun 15 / Sep 18*), then Oct 19 to Jan 20 missed payment prior to Default.
Card B - Started 2018 - No Missed payments until Oct 19 to Jan 20

*Sep 18: two separate payments were mistakenly made on Card B.


There were other missed payments which were never negatively recorded due to 1-2 days due to payment processing.

However I did still incur Late Payment Fees & Over limit fees on BOTH accounts in the same Months - basically equating to £48 of charges in a month. (2 x Late Payment / 2 x Over limit @ £12) but this was never negatively recorded on profile as I did make the payments.


My questions are as follows:
Charges: 
When a complaint is summitted how should Capital One treat a complaint? Is it a 1-2-1 relationship (CapOne & Customer) or is the complaint based upon the individual accounts.

I am awaiting my SAR which will give me details of all charges since 2015 (start dates)
 

Default:
When entering a Payment Plan, should a Default be immediately applied to an account with no "Notice of Default" being issued ie the cooling off period?
Is it appropriate for a company to register a default and not a payment plan marker on a credit report?

I remember reading somewhere within the CONC guidelines about treating a customer fairly, and not misleading them - wouldn't the immediate default 'vs' their blurb on the website about reducing damage to credit rating be classed as misleading and treating a customer unfairly?

(PS the company has said they will review my job application if I could get amended to a non-default marker)
 

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i don't think i'd bother going into the ins/outs of their debt advice or guideline and what part they play into what has happened...

but.. appeal to cap1's better nature by explaining

 

 

....you had 2 cards with them at the time of the reduced payment plan entered into date xxxx.

on date xxx you registered a default on one card, but on the other merely marked it as in an arrangement.

it has now come to pass i have landed my dream job, but the default you have registered is stopping me from attaining the post .

 

my potential employers have indicated that if i could get the default removed and have it replaced with the same arrangement marker as the other card which entered the same scheme with you at the same time, they will employ me.

 

would it be at all possible for you to do this as a gesture of goodwill allowing me to attain my dream job?

this seems such a trivial matter to upset my whole future

 

i thank you for you time 

  • Like 1

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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Posted (edited)

Response from Head of Complaints:

 

Quote

Thank you for getting in touch with us on 2 April. We’re sorry you haven't had a good experience. Since you told us you weren't happy, we’ve been looking into what happened. Thank you for being so patient while we’ve been getting to the bottom of it.

 

We understand you’re unhappy about the default applied to your account in February 2020.

 

Now we’ve taken a look at all the information, we're writing to tell you that we’ve decided not to uphold your complaint. Not upholding your complaint means we think everything happened as it should, and we feel we’ve treated you fairly. We’d like to explain how we’ve made this decision.

 

Default

 

We’re sorry to hear about the impacts of the default on your credit file and because we understand this is a worry for you, we asked our specialist team to review whether there was anything we could do.

 

When we’ve looked at this further, we’ve confirmed that we’re unable to remove the default applied, as we’ve followed our process correctly. To explain, when you contacted us in January 2020 and provided us with details of your affordability, we agreed to set up long term payment plans for both accounts.

 

We explained that as a consequence of the long term arrangements agreed, your accounts would default, and you would be sent letters confirming this. These were sent to you on 21 January 2020.

The letters explained that if on reflection, you decided that the long term plans were not the right solution for you, you had until 18 February 2020 to cancel them and we would then cancel the default. We confirmed that your credit agreement would be terminated on 18 February 2020.

 

We understand why you’re asking us to remove the default from your credit file and acknowledge the upset and concern this has caused you, particularly when you’ve now settled both accounts in full.

 

We’re sorry to say that because we feel the default were applied correctly, we’re not allowed to remove them. This is because we’re obliged to accurately report defaults to credit reference agencies, so they have a clear picture of how you handle your debt.

 

We realise this is not the answer you were looking for, but we hope we’ve helped clarify our decision.

 

Interest and charges

 

Your complaint about the interest and charges applied to your accounts, has already been investigated, and we sent our final response on 15 January 2020.

 

As it has been more than six months since we issued your final response on this matter, the complaint is now time barred. The Financial Ombudsman Service would no longer have our permission to consider your complaint regarding this matter.

 

What happens next?

 

Both accounts are settled with a zero balance. No further payments are required.

 

We have raised your request for a subject access request, please be advised that we have 30 days within which to send this to you.

 

Correcting your credit file

 

We understand that the effects of a default on your credit file is worrying, as this is something which will remain on your record for 6 years, from the date it was applied. If you want to give some context to the credit reference agencies, you can add a Notice of Correction to your record.

 

A Notice of Correction is a short note that provides more background to your circumstances, such as being redundant or on long-term sick leave. It helps credit providers understand your situation better before they lend to you.

 

To add a Notice of Correction you’ll need to contact each of the three credit agencies and follow their simple process:

 

Experian www.experian.co.uk

Equifax www.equifax.co.uk

TransUnion www.TransUnion.co.uk

 

Does this answer your complaint?

We hope this resolves everything and that you’ve found this helpful, however if you have further questions please call us on 0333 000 0209.

 

If you’re dissatisfied with the way your complaint was resolved, you have the right to refer your complaint to the FOS, free of charge – but you must do so within six months of the date of this communication. If you do not refer your complaint in time, the Ombudsman will not have our permission to consider your complaint and so will only be able to do so in very limited circumstances. For example, if the Ombudsman believes that the delay was as a result of exceptional circumstances. More details about the FOS can be found on its website www.financial-ombudsman.org.uk.

 

You can also access an electronic version of the FOS’ leaflet which provides more information for consumers through the following link: https://www.financial-ombudsman.org.uk/publications/consumer-leaflet.htm. If you require a paper copy of this leaflet, please let us know.

 

Thanks for being a Capital One customer.

 

Head of Complaints



Looking though some older emails:
One of the cards I had requested a payment plan in October 2019, then 13th Nov 2019 I requested the same plan for the 2nd card but they said they needed an income & expenditure
(despite me being the same person and the details were exactly the same as the other card) -- at this point neither cards were in Default.

I continued to complain about the refusal of the plan due to the fact that they already had the information on 3rd Jan 2020 it was escalated to the complaints team and they replied on 15 Jan 2020 but still insisted on an I&E for the second card.
At this time, due circumstances beyond my control, I requested that the payment plan be lowered to £5 pcm and this to be active on the 2nd card as well and provided a revised I&E.
This resulted in the Plan will only be put into place if the account is default (letter issued 21 Jan 2020) - Default applied 22nd Feb.

I am going to wait for the SAR, and read through everything as it will show the difficulty I faced with the company trying to put a payment plan into place.
Then try contacting the Company Secretary (Rupert MacInnes) and then if that fails CEO (Lucy-Marie Hagues)

I think I am now completely out of luck in regards to Charges and Fee's, unless "Lockdown March 2020" can assist with being unable to complain to FOS within 6mths as an exception?
 

Edited by ads_uk
removed personal info.
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still a bit puzzled really why they accepted the situation on one card and didn't default you, but did on the other, they haven't really explained what caused that .....

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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Do you think inconsistency in reporting go in my favour?

Equifax - No default registered, shows missed payments Aug - Oct 20 & two different settlement dates Nov & Dec 20.

Aug 20 & prior paid on time marker for both

 

Experian - Default registered Feb 2020

 

TransUnion - Default registered Feb 2020

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  • 2 months later...

Received a new reply from Head of Complaints.

Despite sending through copies of my reports to show the differences, they still state that they are reporting correctly?

They've also said that as the last email was their final response (despite me replying with additional evidence) and I do not have their permission to take it to the FoS.

 

Do you have an updated file that was originally here for the Director/Executive team contact, as CS/Complaints?

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ceoemail.com?

please don't hit Quote...just type we know what we said earlier..

DCA's view debtors as suckers, marks and mugs

NO DCA has ANY legal powers whatsoever on ANY debt no matter what it's Type

and they

are NOT and can NEVER  be BAILIFFS. even if a debt has been to court..

If everyone stopped blindly paying DCA's Tomorrow, their industry would collapse overnight... 

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