Company Amex Credit Card

futumsch

Our company is asking its employees to switch over from using Barclaycard to Amex for its company credit cards. This is so that we can pay for company business when we work on outside duty.

However, in doing so, we now have accept personal liability for it. At the end of each month, the company will pay off the debt, after submission of all the receipts etc. Our company will not even be jointly and severally liable though.

And, we will also get a personal credit check, because we are personally liable.

Does anyone have any comments on the risk and legal obligations we employees are taking, should we agree to accept the new company Amex cards?

ckerrd

Not uncommon.

Company I worked for used to use company barclaycards, which has personal liability. Some people refused to take them and despite much protest from management they found that people could not be forced to take them, however this was a change to old accepted procedures of submitting expenses and getting the money back, so becasue it was a change that might have been the problem. I don't think a company can "force" you to have a credit card but if it is part of the terms of employement they may be able to. Have you a Union rep to speak to?

futumsch

Thanks ckerrd.
This is early days and fortunately there is some overlap between us using either card. A great deal of employees have already refused to use this card. In our case, no they cannot "force" us to have a credit card.

This personal liability on company cards is new to me, and I already have several issues with it, and just to beef up some debate, I wonder if anyone could tell me if my concerns are justified?
1. That the company can have some effect on my personal credit rating
2. That the company is a liability to my personal credit rating, effecting the chances of me ever getting a loan or mortgage again
3. If the company goes bust, I would be liable to pay off the debt
4. That it is impertinent and personally offensive that the company is expecting me to take personal financial risk so that it may conduct its business.

HugoSP

Evenn if the card is issued to you, you do not have to use it for a number of reasons:

1) The establishment that you use may not take Amex. In my previous job we found that wasn't uncommon.
2) For this reason the company has to accept that the old fasioned cash advance/expense system still has to be operated.

I had one of these cards for several years and never had a problem with my employer. We had to be efficient in filling in our expenses. When we got our Amex reports we then filled in the form and had to enter VAT details and classes of expenditure. In addition, to reclaim the VAT the company needed receipts. I think I mislaid one receipt in all my time at the company, but that didn't stop my expenses being paid.

Legally the company is liable to you for business expenses but if they did go bust then, from what you say, the CC company may come to you. I must admit the Amex system had been in place for several years at the company before I got my card. However, in practice this is no different to spening your own money and asking the company to reimburse you.

If you incurr late payment charges due the company's mismanagement then you would look to the company to pay those.

I know one chap who used to use a personal CC for his business use. We were each knocking up around £3k a month at this time and he was earning cashback for himself.

If you do refuse to use Amex that may be an option for you. Start with a Capital One card and get 0% on purchases for several months, then stick the expense refunds from your company into a high interest account, pay off the minimum, or enough to be able to operate the card then cream off the interest you make from the money before you pay the card off just before the deadline.