Consumer complaint received 2018-11-10
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:
I received the response from the credit card company and it was unacceptable. Just because you sold the account doesn't mean it can not be fixed. It can be recalled because the debt was a mistake. Just saying that it is out of our hands is unacceptable because I can prove with your own Customer Agreement that with the security deposit being collateral for the account then i dont owe anything and you need to change collateral to partial collateral or factor in late fees and interest for an average secured credit card account when collecting a security deposit. In the Capital One Customer Agreement under Security Agreement first paragraph : " You must provide a security deposit in U.S. dollars from a U.S. deposit account ( the " Funds '' ) to secure the obligations to us that you incur in connection with your Account ( " Obligations '' ). So the deposit is to ensure you keep to the customer agreement. [ Customer Agreement = Obligations ] All fees and interest fall under this statement being in connection with your account [ so if the obligations describes the whole agreement " Obligations '' = credit limit + interest + fees which is your " Balance ''. In paragraph 4 it further describes the security deposit as being Collateral by stating " You grant to us, as of the date you deliver Funds to us, [ Funds being the security deposit ] a security interest in the Funds, any additions to the Funds, any proceeds of the Funds and any interest on any of these ( collectively the " Collateral '' ) [ so they are stating that Funds + addition to Funds + interest on Funds + proceeds of the Funds = Collateral so lets back up, if Security Deposit = Funds and All Funds = Collateral then Security Deposit = Collateral ] to secure your performance of the Obligations. '' Basically the security deposit is collateral for the " Obligations. '' So the security deposit covers everything in the agreement. 

Collateral is defined collateral /kladrl, klatrl/ noun noun : collateral ; plural noun : collaterals 1. something pledged as security for repayment of a loan, to be forfeited in the event of a default. 
synonyms : security, surety, guarantee, guaranty, insurance, indemnity, indemnification ; backing " she put up her house as collateral for the loan '' This is the definition when XXXX searched. You can go to XXXX and search " Collateral '' to find this definition.

[ to help understand i would define collateral as being different but equal to so if im loaned XXXX dollars and give a watch as collateral then the watch = {$20.00} in the deal. Doesnt matter if the watch is worth {$50.00} its still a full payment for the {$20.00}, same goes if the watch is only worth {$10.00}, its still full payment for the {$20.00} not watch + {$10.00} when you go to collect. 

So in that definition they use the word loan. Loan in our case is the " Obligations '' [ which obligations would be everything in the agreement you agreed to which includes interest and fines which is the " Balance '' ] No where does it say that the security deposit is partial collateral for the loan or " Balance ''. The way the dictionary defined it was house = loan, so the house covers the loan or in our situation " Obligations '' which is all terms in the agreement all formed into a " Balance '' So all related together a Loan = Obligations and Obligations = Balance so house = balance or in our situation security deposit = balance. What your doing is saying the house is only partial collateral of the loan or " Balance '' and now you want the house + car as payment when the house was already agreed upon as collateral for the loan aka " Obligations '' The reason there was this misunderstanding was because i lost my job and my balance was under my credit limit and i could not pay anymore but i did not close the account because i read that the security deposit is collateral meaning i didnt have to pay anything cause it was covered by the security deposit and what you would do is just take my security deposit and it would be done the account would be closed and all even. Instead i had to find out from my credit report that you tacked a bunch of fees and then closed the account. 

This is why i had to define what collateral means in our situation because if i paid a security deposit and a security deposit is collateral then you would have just closed the account and it wouldnt matter if you added any fees to the balance because it would be covered by the security deposit with the word collateral being used. Remember even if different it is still equal no matter if it more or less. You must know what collateral means if using it in your agreement. You can not use collateral because there is no such thing as partial collateral. When something is collateral it equals whatever the loan is. In this case the loan would be described as the Obligations so you cant say that everything is not satisfied when using the word collateral because collateral means one thing equals another not one thing equals some of the other. When i read that the security deposit was collateral i understood that it would cover the obligations so you cant say the security deposit is collateral and not have it satisfy all the obligations. you would have to remove the word collateral and use something else to describe the security deposit. THERE CANT BE ANY PART OF THE OBLIGATIONS NOT SATISFIED IF YOU USE THE WORD COLLATERAL so that sentence does not make sense in the agreement. Im talking about the sentence that says " You are responsible for the repayment of any Obligation that is not satisfied by the application of the Collateral. '' YOU CANT APPLY A COLLATERAL AND NOT HAVE EVERYTHING SATISFIED. When using collateral it covers one item to another and in this case security deposit to obligations and everything is satisfied. its house-loan not when you go to collect collateral then asking for house + car to = loan

Company response to consumer: Closed with explanation