Applied Bank Secured CO issue

[ThetoriParadox]

I had an applied bank secured card with $200 on there. It was charged off but the balance is still sitting at $119, which is what the balance was at CO including interest and fees. Am I wrong for thinking that the deposit I put down should have covered this? And in fact they owe me 81 bucks?

They are so hard to get a hold of and I asked a CSR and they were not super helpful at all...

thoughts?

[Hut1]

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@ThetoriParadox wrote:

I had an applied bank secured card with $200 on there. It was charged off but the balance is still sitting at $119, which is what the balance was at CO including interest and fees. Am I wrong for thinking that the deposit I put down should have covered this? And in fact they owe me 81 bucks?

They are so hard to get a hold of and I asked a CSR and they were not super helpful at all...

thoughts?

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That's a tough question without seeing the fine print of how your deposit could be appliied if you become delinquent. You could always dispute it with the CRA, but that would be a last resort option. Your CRA's should have a solid contact number for the collector.

[ThetoriParadox]

This is what I found in their credit agreement:

Security. You grant us a security interest and pledge and assign to us any and all sums now or later in any Deposit established by you to secure payment of all of your existing and future obligations under this Agreement and your Account. The Deposit must be maintained with us unencumbered (i.e. not subject to any lien, judgment, attachment or execution) at all times. You may add to the Deposit at any time. With our consent, you may also withdraw from the Deposit, which will reduce your Credit Limit by a like amount, so long as you do not cause the outstanding balance in the Account to exceed your new, lower Credit Limit. You agree that we may restrict your right to obtain withdrawals from the Deposit. Upon a Default and without notice to you, we may apply any sums then in the Deposit against what you then owe on your Account. We may retain the Deposit or any sums remaining in the Deposit until the latest of the following events: (i) 14 days after the time all sums owed to us on your Account are paid in full, (ii) 10 weeks from the time we receive from you all of the unexpired Cards and Cash Advance Checks, cut in half, or (iii) 10 weeks from the time of termination of your Account. Except for the Deposit, we do not have a security interest in any other of your property in connection with your Account.

[RobertEG]

Once you become in default (delinquent) under your account agreement, they can apply your deposit to the delinquency, but it is not required.

They can continue to bill and hold the account delinquent without being required to apply the deposit against the debt balance, thus reducing or eliminating the delinquency balance.

If you wish the deposit to be applied to the debt balance, you should contact them and request that they do so.

It is not automatic upon default.