company credit card worry

tyler1

My wife has been given a company credit card that she uses to pay for company business only, the card has the company name and her name on it and the card is registered to our home address where the bill comes to.

My worry is that if the company go under or the bill is not paid she will be liable for the card debt!

Can anyone advise me please?

Thanks.

maturelearner

If I remember correctly and I stand to be corrected.

If a company is a limited (Ltd) or Plc then individuals are not liable for their personal possessions to be held if "debt" occurs.

However sole traders (one man bands) or partnerships mean the company owners are fully liable for their personal possessions to be taken against debt. (with the exceception of clothes which maintain dignity they are wearing when reposession occurs).

Therefore I am presuming your wife is purely an employee which would mean (if I'm right) she wouldn't be liable if the company goes under.

However this doesn't mean an aggressive crerdit control department wouldn't try to reclaim the monies on the credit card this way. Also i believe it depends whose name the credit agreement has been taken out in.

Sorry I couldn't be of any more clearer help.

tyler1

Thank you maturelearner

The company is a "Limited" company and my wife is purely an employee.

pelirocco

maturelearner wrote: »

If I remember correctly and I stand to be corrected.

If a company is a limited (Ltd) or Plc then individuals are not liable for their personal possessions to be held if "debt" occurs.

However sole traders (one man bands) or partnerships mean the company owners are fully liable for their personal possessions to be taken against debt. (with the exceception of clothes which maintain dignity they are wearing when reposession occurs).

Therefore I am presuming your wife is purely an employee which would mean (if I'm right) she wouldn't be liable if the company goes under.

However this doesn't mean an aggressive crerdit control department wouldn't try to reclaim the monies on the credit card this way. Also i believe it depends whose name the credit agreement has been taken out in.

Sorry I couldn't be of any more clearer help.

You are right that the owners of a non ltd are responsible for company debts,however I doubt all their possesions bar the clothes they stand up in will be taken !!!

OP ,your wife should check the terms and conditions of the card ,

Number_Six

Sounds a bit dodgy to me. People in the company I work for have company credit cards but the bill always goes to the company, why should the bill go to someone's personal address?

milliemonster

Number_Six wrote: »

Sounds a bit dodgy to me. People in the company I work for have company credit cards but the bill always goes to the company, why should the bill go to someone's personal address?

I recently left a large blue chip company which held a corporate card system and corporate card bills always go to the employee's address and it is the employees responsibility to reclaim the expenses through the company's expenses system and pay the card balance in full each month, this was with HSBC. Any company that has an annual turnover in excess of £3m uses corporate cards. Commercial credit cards are for smaller companies and these card bills go direct to the company and not the mployee