Corporate Credit Card Protection
Author: NoFaultOfMine77
Posted: Mon Feb 23, 2004 4:06 pm
Post subject:Corporate Credit Card Protection
While working at my last employer, it was requested that we sign-up for a Corporate AMEX card to be used for travel & business expenses. I signed up for the card through my employer and was approved. Even though I filled out the application with all my personal information, I directed (with company approval) the monthly statements to be sent to the corporation's address where the monthly statements were paid in-full by the corporation. Because I had limited travel & business expenses, my card was regularly used to buy product for resale in the regular course of business. Two years after issue of the card, the company was acquired by another company who continued to handle the payment of the account. One year after the acquisition, the parent company closed its doors and I was out on the street. Subsequently, I received calls at home from AMEX stating that the account was past due and that I was required to pay it in full. Each time, I told the caller that the debt was not mine and that I was not and could not pay the debt. The balance of the account was $90K+ and the principles of the parent company knowingly closed the business without covering the AMEX debt that they were wholly responsible for. That was 2 and a half years ago. At no time have I received any calls or any written notices from AMEX or a collection company, until this past week. The notice is demanding payment in full from a collection company. What rights do I have to defend myself from being obligated to pay this debt and what steps do I need to take to protect my present earnings, credit, or assets (which are practically nothing to speak of)?
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Author: NightStar
Posted: Mon Feb 23, 2004 4:21 pm
Post subject: Corporate Credit Card Protection
Unfortunately this is a commercial debt not allowed the same protection as personal debt for consumers under the Fair Debt Collection Practice Act.
I am not versed enough to advise you on this matter, you really need to seek out legal assistance.
The closest thing I can think of is that it would be like Divorce, that if a spouse does not take care of their responibility by divorce decree, then there is nothing the other spouse can do but pay the bill then sue the responsible party in court for breaking the divorce decree.
I don't know if this would be correct for your situations, but chances are you have some kind of legal recourse against the company for not taking care of this creditor (finalizing) If they filed bankruptcy, chances are they included American Express, but bigger chances are they did not include you on the bankruptcy. Meaning their might be a way backwards to make them accountable directly to you for this debt.
Really don't know, just speculation, so you need to contact an attorney about this.
Author: Ira
Posted: Mon Feb 23, 2004 9:20 pm
Post subject: Corporate Credit Card Protection
This is going to be like locking the barn after the horses have fled. What if anything do you have in writing from either employer stating that any debt incurred under this card was a debt of the corporation and not your personal debt? ALWAYS get a signed written statement of company policy regarding the use of corporate credit cards. Policy whould state how they approve purchases on the card and how the bills get paid.
I almost had a different problem. I received a corporate Amex card for T&E use. I used to fly all over the country for business. Although the card was in the corporate name, I was required to pay AMEX and put in for reimburesment. That worked fine until I left the company. Then we ran into similar problems. Fortunately in my case nobody went out of business and the problems were solved although it took several months.
Author: Guest
Posted: Mon Feb 23, 2004 9:26 pm
Post subject: Corporate Credit Card Protection
I have experience with AMEX corporate cards. Let me tell you if THEY thought you were responsible for $90,000 you can bet THEY would have been all over you before this. I have the card and if I even think about going over 30 days they resort to daily calls for way less than $90K. What has most likely happened is that now that a collector has it they are trying to see if they can get you to bite.
I would check your credit reports to see if it is on them. If not that would be really good news. My suspicion is that the CA is just trying to see if you'll bite. If for some reason this is, or gets put, on any of your CR's I would get a lawyer ASAP. You should not be responsible for this debt.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Mon Feb 23, 2004 4:06 pm
Post subject:Corporate Credit Card Protection
While working at my last employer, it was requested that we sign-up for a Corporate AMEX card to be used for travel & business expenses. I signed up for the card through my employer and was approved. Even though I filled out the application with all my personal information, I directed (with company approval) the monthly statements to be sent to the corporation's address where the monthly statements were paid in-full by the corporation. Because I had limited travel & business expenses, my card was regularly used to buy product for resale in the regular course of business. Two years after issue of the card, the company was acquired by another company who continued to handle the payment of the account. One year after the acquisition, the parent company closed its doors and I was out on the street. Subsequently, I received calls at home from AMEX stating that the account was past due and that I was required to pay it in full. Each time, I told the caller that the debt was not mine and that I was not and could not pay the debt. The balance of the account was $90K+ and the principles of the parent company knowingly closed the business without covering the AMEX debt that they were wholly responsible for. That was 2 and a half years ago. At no time have I received any calls or any written notices from AMEX or a collection company, until this past week. The notice is demanding payment in full from a collection company. What rights do I have to defend myself from being obligated to pay this debt and what steps do I need to take to protect my present earnings, credit, or assets (which are practically nothing to speak of)?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Author: NightStar
Posted: Mon Feb 23, 2004 4:21 pm
Post subject: Corporate Credit Card Protection
Unfortunately this is a commercial debt not allowed the same protection as personal debt for consumers under the Fair Debt Collection Practice Act.
I am not versed enough to advise you on this matter, you really need to seek out legal assistance.
The closest thing I can think of is that it would be like Divorce, that if a spouse does not take care of their responibility by divorce decree, then there is nothing the other spouse can do but pay the bill then sue the responsible party in court for breaking the divorce decree.
I don't know if this would be correct for your situations, but chances are you have some kind of legal recourse against the company for not taking care of this creditor (finalizing) If they filed bankruptcy, chances are they included American Express, but bigger chances are they did not include you on the bankruptcy. Meaning their might be a way backwards to make them accountable directly to you for this debt.
Really don't know, just speculation, so you need to contact an attorney about this.
Author: Ira
Posted: Mon Feb 23, 2004 9:20 pm
Post subject: Corporate Credit Card Protection
This is going to be like locking the barn after the horses have fled. What if anything do you have in writing from either employer stating that any debt incurred under this card was a debt of the corporation and not your personal debt? ALWAYS get a signed written statement of company policy regarding the use of corporate credit cards. Policy whould state how they approve purchases on the card and how the bills get paid.
I almost had a different problem. I received a corporate Amex card for T&E use. I used to fly all over the country for business. Although the card was in the corporate name, I was required to pay AMEX and put in for reimburesment. That worked fine until I left the company. Then we ran into similar problems. Fortunately in my case nobody went out of business and the problems were solved although it took several months.
Author: Guest
Posted: Mon Feb 23, 2004 9:26 pm
Post subject: Corporate Credit Card Protection
I have experience with AMEX corporate cards. Let me tell you if THEY thought you were responsible for $90,000 you can bet THEY would have been all over you before this. I have the card and if I even think about going over 30 days they resort to daily calls for way less than $90K. What has most likely happened is that now that a collector has it they are trying to see if they can get you to bite.
I would check your credit reports to see if it is on them. If not that would be really good news. My suspicion is that the CA is just trying to see if you'll bite. If for some reason this is, or gets put, on any of your CR's I would get a lawyer ASAP. You should not be responsible for this debt.
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 11:30 AM
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