Company credit card - previous employer hasn't paid outstanding balance

MumofCR

My husband left his previous company at the end of September and had an outstanding balance on his company credit card that was due to be paid. He submitted an expense claim for this amount before he left the company but it still hasn't been paid.

My husband has been in contact with HR from the previous company on numerous occasions but nothing has been done. We received a letter from the credit card company this morning saying that they are going to take legal action for recovery of the outstanding balance. Where do we go from here? I think we should pay the balance so that our credit rating isn't affected and then seek legal advice.

Help!

Googlewhacker

so its not actually a company credit card but a personal one that your husband used to purchase things on for company use?

If it is his CC then I would pay it off as you suggest and chase via the courts (not sure on your chances of winning though!) the amount owed.

Are we talking alot here?

MumofCR

Its a corporate credit card but my husband is also named on it. The balance is over £1500. Its a very well known, large company that he used to work for so I'm really annoyed that they haven't paid it.

PaulLuke

Did your husband normally pay the credit card himself or did the company settle it directly? If the process was that he settled it himself and was then reimbursed by his company it sounds like the card is in his name and he ought to settle the debt and continue pursuing his old company for repayment.

Also does the card appear on your husband's credit report. If it does then some damage will already have been done as this will be showing non payments on his credit report.

MumofCR

When he first has the credit card he used to pay it and claim the expenses back but then the company was taken over by a much larger company and they changed the process so that they paid the credit card company directly.

MrRedundant

If it is a corporate card the company are liable not your husband. What you describe is not a corporate card however and I suspect your husband has a personal credit card which he used for expenses.

MumofCR

I'm looking at the card now and it says American Express Corporate Card on it.....

MrRedundant

MumofCR wrote: »

I'm looking at the card now and it says American Express Corporate Card on it.....

This doesnt mean it isnt in your husbands name.

smartpicture

If the credit card company considered that the liability lay with the company, I'm sure they would be chasing the company - particularly as you say it is a large well-known company, they must consider their chances of getting the money that way would be better. Therefore it does seem that they consider it to be a personal credit card which your husband is personally liable for.

Sambucus_Nigra

If he left, why has he still got the card unless it is a personal card?

MumofCR

The card has been cancelled by the company but he kept the card so that he had the card number to hand until this had been sorted out.

He spoke to amex and they say that both he and the company are liable for the outstanding balance and they sent the letter to both the company and my husband. My husband was told by amex that they expect the company to pay the balance. I'm not holding my breath! In the meantime we are seeking legal advice.