Credit Tips: Liability for Company Credit Cards

Posted On: September 19, 2006

Author: stadster
Posted: Tue Sep 19, 2006 12:00 pm
Post subject: Am I liable for company credit card

I stopped working for a company 3 years ago that recently stopped making its credit card payments.

At the time of my employement I was given a company credit card. I made some business related charges at the time. Now I am being told by a collection agency that I am responsible for this debt.

Is this corrrect? How long am I responsible? If the company had a zero balance any time after I left would I still be liable.

I would appreciate any help you can give in handling this situation.

Author: Andri
Posted: Tue Sep 19, 2006 2:34 pm
Post subject:

wow, i know this was a long time ago, but do you remember if you actually applied for the card (online or by a paper application)? The only “company card” I ever had I didn’t even know I was getting until it arrived, so I know i didn’t sign an application. My current company doesn’t have company cards, unless you really need help getting one (like you a just out of school and can’t get a decent high limit credit card on your own). If you signed an application, I am afraid you might have a harder time. Hopefully someone can help.

Author: stadster
Posted: Tue Sep 19, 2006 2:43 pm
Post subject:

I don’t remember applying. I think I was just given the card and my liability was buried in the terms of use for the card, but it was so long ago I am not sure.

Author: Ira
Posted: Tue Sep 19, 2006 3:28 pm
Post subject:

Company credit cards create strange two edged swords. Was the card issued in the name of XYZ Corporation? Did it have your name on it, or both? If it was in your name and the company name it is possible but unlikely that they can come after you. Since you never signed an application it’s doubtful they have a leg to stand on and are trying to collect from you in desperation. Just keep saying no.

The company card I had about 5 years ago required me to make up front payments to the issuer and then fill out an expense report to get reimbursement. I hated the arrangement because for some amount of time my money was outstanding on behalf of the company.

Here’s the strange thing. Just before I left I lost an airline ticket and had to purchase another. I found the first one and was credited for the full amount - via the company credit card! Since I was no longer with the company the credit card company would not release the funds to me. Instead they sent the credit to the company.

Now I was in the awkward position of having to go back to my ex-employer to demand that I get the refund. Of course it took them several months to “investigate” the matter, but I eventually got my money back.

I will no longer accept a company credit card. For one thing there’s nothing in it for me. I always use reward cards and I would lose my cash or mileage if I used a company card.