What a rough situation, very sorry to hear about this happening. I know you've worked hard to get to this point and it's got to feel like a major setback now. Well, as others suggested the EO is the best and only route to get this resolved. While they may not restore your accounts, I hope they at least lift the blacklist on you.
The ironic thing is you had a returned payment but truly intended to pay yet cap one shuts you down and shuts you out, now had you burned them for thousands of dollars in a BK you'd be more than likely welcomed back and treated with less disdain. One thing to take away from this experience is to not believe anything a frontline CSR says, they are very misinformed and hand out misinformation in some cases.
As others have suggested, take a look at NFCU, your scores are decent enough for a great card with a great SL and you can join with no military affiliation. Another idea is what you suggested and that is go for a BofA secured card, it's an excellent card. You've made a mistake and it cost you and it feels like crap, but don't let it get you down, it's just one lender and this may end up with a far happier ending in the long run, there's silver linings on thise dark credit clouds, work on the EO and applying for navy and keep us updated. Best of luck to you.
