My question involves collection proceedings in the State of: New York.
Years ago I got a secured Capital One Card to build my credit. I had to pay a $200 deposit for a $200 line of credit, they explain because I didn't have established credit I as a risk, so the $200 was for them to protect themselves in case I didn't pay, made sense to me. I never got a credit increase or anything, 18 months ago I was in between jobs and defaulted on this Capital One Card and thought the balance would be covered by the $200 secured deposit I had. Well I was wrong, last night this shows up on credit report from portfolio recovery, the collections account says it was opened May 23, 2017 for $244. I've heard nothing from Capital One, in fact I have another un secured card with them that was opened the month before they sold this debt to Portfolio Recovery.
I disputed this on my credit report and I got a letter from Portfolio Recovery in the mailbox when I came home from work with a letter from capital one saying the debt has been sold to and owned by Portfolio Recovery along with a photocopy of my last years of bills from capital one before it defaulted.
Am I really going to have to pay this debt twice? I already paid it in the form of my Security deposit.
I am a big fan of the peoples court and the term "the law is supposed to make you whole." How is this making Capital One Whole? They were paid for the debt upfront, over the years I paid many interst charges and fees for this high interest secured card. Then they get money on top of what they were owed from Portfolio Recovery buying it, plus at least a $44 fee if they collect. I'm sure they didn't buy this at the $200 balance either, so they'll also make out like bandits. Instead of being made whole someone is going to be made doubly whole.