Consumer complaint received 2018-09-20
Company: CAPITAL ONE FINANCIAL CORPORATION
State: AZ
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Closing your account
Sub-issue: Company closed your account

Complaint:
It was a capital one credit card and now being collected by XXXX XXXX. I was surprised to see I had a debt with capital one. I had two secured credit cards at one point and as a secured credit card the limit or balance is covered by the security deposit. Security deposit is collateral so that if someone stops paying then everything will be covered by the deposit and both the credit card company and customer is satisfied because the credit wont have to collect a debt and the customer wont accumulate any more bad credit. XXXX XXXX  did this same thing to me but they removed it after I called and explained that my balance was covered by the security deposit. I called capital one and was answered with that's not what this credit card does. I signed up for a secured credit card so that I wouldn't have to ever owe and they signed me up with a higher limit then the security deposit covered so it was turned into an unsecured credit card without my knowledge. I had a XXXX limit with a XXXX security deposit. According to what it says about secured credit, the deposit is collateral for whatever the limit is, not partial otherwise it would be turned into an unsecured credit card. The object of the card was to build credit, not have it be closed with a debt that makes my credit worse. I have removed everything off my XXXX but this card. Anyway I ended up losing my job in 2015 and could not pay for the credit card anymore. I was not worried because I knew I was covered by the security deposit and the account would just close out and been paid for by the security deposit. Come to find out my account ended up being overdrafted and stacked with late and overdraft charges. I got the secured credit card to avoid this happening and it still ended up happening and my credit is screwed up cause of it and I cant get another credit card with cap one because I was denied due to this debt. Because I have cleaned up my credit I now qualify for an unsecured credit card and would get the card no problem if I didn't have this on my credit. I don't see the point of giving someone a secured credit card. Having the deal say that the security deposit is collateral then not abiding by the deal and having the security deposit cover only part of the card and then stacking with late fees and overdraft fees. It should have closed with the security deposit covering any and all debts or losses from the card. Those were the agreements that the security deposit would be collateral and everything would be covered aka secured. Secured means covered not partial coverage and not if we overdraft your account with a late fee. It is what it is, the secured credit card is covered by the deposit no matter how much is deposited or what the limit is compared to the deposit. If I wanted an unsecured credit card I would have applied for one but I didn't want to maybe lose my job like it did and have a huge debt. Instead I chose the secured to make sure its covered in case something happens and it can close even. I do not owe this company any money, it was all covered by the deposit and I would like to have it removed from my credit. I also sent in a dispute and never received a response instead " XXXX XXXX '' showed up so all they did was change to a different collection after I disputed which voided the dispute. I used XXXX XXXX to dispute everything on my credit and everything was disputed and I saw capital one removed then all of a sudden show up as XXXX  XXXX. Another tisk tisk cause I don't know if they could validate the debt or what but not answering then just opening a new account under a different name so they could try to collect something that was already disputed with no response is low especially when the entire debt is just their own fees so I don't owe anything. If they were to clear this from my credit I would get another card with them and build a new relationship. A secured card is a secured card. I received an unsecured card if the card wasn't covered by the security deposit.

Company response to consumer: Closed with explanation