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Dispute Secured Card Collection

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Anonymous
Not applicable

Dispute Secured Card Collection

I was reviewing my credit report, and noticed something that I must have overlooked before ... Portfolio Recovery is reporting a collection of $271 from a Capital One credit card from 2013, I believe it was. Well, that credit card was a secured credit card that I received with a $300 security deposit. Isn't that the point of a security deposit? To cover the amount owed if I don't pay it? If that is the case, should a secured credit card be reporting like this? How would I go about disputing - to the collection agency, or to CapOne? Thanks in advance. 

Message 1 of 10
9 REPLIES 9
rmduhon
Valued Contributor

Re: Dispute Secured Card Collection

It can easily go over the security deposit with late fees and over limit fees plus interest on everything if you stoped paying it without paying it to zero.
Message 2 of 10
Anonymous
Not applicable

Re: Dispute Secured Card Collection

But if the reported debt is $271 and the security deposit was $300, then it wasn't over the limit of the deposit 

Message 3 of 10
rmduhon
Valued Contributor

Re: Dispute Secured Card Collection

If it was $571 to start and they used the $300 then you could very possibly owe $271.
Message 4 of 10
Anonymous
Not applicable

Re: Dispute Secured Card Collection

Have you tried to contact capital one directly?
Message 5 of 10
Anonymous
Not applicable

Re: Dispute Secured Card Collection

Ah that makes sense, I see what you're saying. How would I find out this information, then? Collection Agency or Original Creditor? 

Message 6 of 10
rmduhon
Valued Contributor

Re: Dispute Secured Card Collection

Talk to Cap1 first. They may be able to tell you the amounts or send you old statements.
Message 7 of 10
Anonymous
Not applicable

Re: Dispute Secured Card Collection

And will going to CapOne and bringing up this account that they sold off - will it effect my current credit card with them? Like raise a red flag to them and make them wanna cancel my card or lower my limit?

Message 8 of 10
rmduhon
Valued Contributor

Re: Dispute Secured Card Collection

It shouldn't. Cap1 is very forgiving.
Message 9 of 10
RobertEG
Legendary Contributor

Re: Dispute Secured Card Collection

The card is still in default.

The amount is placed as security in reimbursement of any default that might occur, ad not as a guaranteed payment to prevent default.

 

Message 10 of 10
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