Personal Debt trap with American Express Platinum Business Card?

leedle

I have an American Express Platinum Business Card. which I signed up to many years ago following a cold call visit and all of the salesman's spiel was about business purchases, business credit check, business card for employees etc and the card itself even has the word business on it and is addressed to both me and my company at my business address.

Cutting a long story short, the direct debit that my (own) limited company had been paying Amex each month got stopped and after a couple of months of arrears the card has been cancelled and a debt collection agency appointed.

The DCA are claiming that this is a personal debt and attempting to recover the money from me personally.

I have my own personal debt problems with all my other cards defaulted, some partially settled and others ongoing but I'd rather not add this one to the pile.

Also, if it is a personal debt, then by paying it all these months that the others are in default, and if my company now gives me the money to pay all of part of this particualr debt, I could be accused by my other creditors of giving preference to Amex and this may jeopardise the outcome with them.

Has anyone had any experience of a supposed 'business card' actually being a personal product?

Also what would happen if employees of a company had been 'given' cards and the company subsequently went under - are they personally responsible?

I phoned a debt advice line but they didn't have any answers other than you should have read the small print - doh!

DarkConvict

Did your company sign any paperwork, or did you sign it all yourself?

If it was signed for by both it would be a joint debt and you would both be liable for the full amount. If however only you signed for it then i would see that you would be liable.

As to a company issuing out cards, it would be a 'company' card and as such the company would owe it. If they went bust the company would pay the card or part of the amount, during its administration/liquidisation.

Have you considered ringing Business Debtline? - http://www.bdl.org.uk/

It maybe even worth having a word with ACAS although i doubt it would be something they could resolve - http://www.acas.org.uk/

leedle

DarkConvict wrote: »

Did your company sign any paperwork, or did you sign it all yourself?

I signed it but thought I was signing as MD of the Ltd Co. The DCA is posting me a copy of the agreement which will probably show I signed as an individual.

DarkConvict wrote: »

As to a company issuing out cards, it would be a 'company' card and as such the company would owe it. If they went bust the company would pay the card or part of the amount, during its administration/liquidisation.

That's what I thought. I have a company card with a different bank but am a personal guarantor on that so the debt will pass to me if the company folds.

DarkConvict wrote: »

Have you considered ringing Business Debtline?

It maybe even worth having a word with ACAS although i doubt it would be something they could resolve

I've only called one advice line and that was a front for an insolvency practitioner. I'll try some more next week

DarkConvict

National Debtline, CAB and business debtline would be places for good advice.

It may be worth while getting a copy of the credit agreement via these methods here - http://forums.moneysavingexpert.com/showthread.html?t=1868507