@sexymommee wrote:BofA charged off my secured card for $4957. My security deposit in which they still have is $5000. I'm not a credit guru but a CO is stating the business is at a loss. BofA is at no loss, as a matter of fact, they owe me 43 cent lol. In all seriousness how can they do this? If anything closed by creditor, paid in full.
I'm on the phone with them now and of course I'm getting nowhere but long holds because the rep can't provide an answer. Called back and new rep said it will be reported as a charge off with zero balance.
Maybe it's too early for me but can someone help me wrap my mind around this because it's not making sense. What's the purpose of a secured line of credit? To protect the creditor from a loss correct? So how are they at a loss?
I am fairly certain ALL secured credit cards operate this way; I just checked my Secured Card Agreement from when I opened a secured TDCash card back in 2020 and the language makes it pretty clear the credit card is for all intents and purposes viewed as a normal credit card for managing and reporting, and the security deposit is simply there to allow the bank to recover the funds in the case of a default.
Long story short, you now have a zero balance CO on your reports and my guess it is going to stick around for a while.
Well that sucks entirely 
Everytime I take a few steps forward life kicks me back to the BACK of the starting line. Le sigh
Sorry about that, yeah, it definitely stinks.
@sexymommee wrote:Well that sucks entirely
in the future, you can always close a secured card to get the money back if you need it, even Open Sky got me my money back in like two weeks, so it doesn't usually take too long for a check to be cut.
0/6, 3/12, 10/24
@sexymommee wrote:Sure did Pizzadude; 60 days. I'm fully aware of my responsibility to make payments on time. I'm also fully aware the bank would not move funds from my deposit to pay any missed monthly bills. What I was not aware of is that when I allowed them to close my secured account it would report as a charge off... but now I am.
From my admittedly biased perspective, there is one tiny silver lining to your situation, you are now rid of BofA from a credit perspective; if you have any deposit accounts with them then in your shoes I'd move them to NFCU and close the rest of your BofA accounts. One of the happiest days of my life was when I finally said good riddance to them back in 2020, and I haven't missed my relationship with them for even a second since. 
