Company Forced American Express Card, Legal?

[Deleted User]

What happens if your bank declines to issue/withdraws the card?

fannyadams

what happens when they don't pay your expenses on time and you go overdrawn?
FWIW I had one, i set it to take the minimum payment from my account in case the company were late paying expenses.
but the REAL annoyance was the assumption by the company I worked for that AMEX was accepted everywhere... the number of times I took the card out only to be told sorry we can't accept that (and I was MILES away from a cash machine where I could withdraw cash off the AMEX card, which was the only other acceptable way to pay... the company system meant you couldn't use your personal credit card and claim that back)

mrchiggles

I've got the same arrangement with my employer (I suspect a couple of us posting on this thread might share the same employer....)

Worth noting these cards aren't connected to your credit file so don't affect your financial position at all - which is just as well given how much sits on mine every month!

I get membership rewards points as well which I can spend how I want so it's not all bad!

thenudeone

IMO - your employer cannot force you to sign a consumer credit act regulated agreement.

I was involved in assessing options for an expenses policy some years ago and one of the options was a company credit card which was debited from the employee's bank account every month like a credit card, but the employee wasn't legally liable and it wasn't recorded as a credit agreement on the employee's file. All expenses were claimed as normal. If the employee cancelled the direct debit, the employer would foot the bill.

One of the biggest problems of traditional company credit cards is that the employee has no incentive to get the paperwork in on time, because they are not out of pocket. A system like the one described above solves that problem. As long as expense claims are submitted on time by the employee and paid promptly by the employer, they will be in the employee's bank account before the direct debit is taken. If the employee is late submitting expenses, they will be out of pocket. It also solves the other problem of having employees with a poor credit record who can't get a normal credit card.

Aquamania

mow2512 wrote: »

Hello everyone, quick question on company forced charge cards.

My employer's expenses policy has recently changed and now requires every employee to take out an American Express charge card to pay for any travel / accommodation / buisness expenses. This card is taken out in my name and at my address and payments are made from my bank account. I have to submit receipts and claim the money into my bank account to then settle the card each month.

Apparently this has been done for compliance reasons and to allow them greater visibility of where money is being spent.

Firstly I'm not a fan of being told what credit/charge cards I have to use when they are going through my account and may have concequences on my credit score.
Secondly these card details are then taken by team administrators to book hire cars and hotels etc so I don't feel these are secure anymore.

Does anyone have any opinions on the legality of this situation?

mrchiggles wrote: »

I've got the same arrangement with my employer (I suspect a couple of us posting on this thread might share the same employer....)

Worth noting these cards aren't connected to your credit file so don't affect your financial position at all - which is just as well given how much sits on mine every month!

I get membership rewards points as well which I can spend how I want so it's not all bad!

Interesting.

So you've both been given these Amex cards that are in your own name, and you've not had to sign anything???

I can't see how it can be legal for anyone to force you to sign an agreement you do not wish to enter into.

I've had corporate credit/charge cards in the past and they essentially come in two types.

1. The employer gives you the card. You are authorised to use it (I'm pretty sure you have to sign to agree to this) but the employer remains liable for everything that is spent on it.

2. The employer enters into an agreement with a card provider, but you also have to enter into an agreement with the card provider and you are responsible for what is spent on it (You get it back via acceptable expense reports to the employer)
Sometimes I have known the employer to be equally & severally liable to the card company for the amount owed (and so any dispute remains between employer & employee) - this tends to overcome issues of an individual's own (poor) credit history especially if the employer is large and established.

As to an employer changing terms and conditions of employment, that cannot normally be done without mutual agreement on both parts
(Be aware that some employers may only agree things with employees on the basis of a mass bargaining agreement e.g. via a recognised trade union)

If you don't like credit cards, how did you do things in the past? Can't you continue that way?
The employer can ask you to submit expense forms for approval regarding any expenses you want paid by them (even if, in the unlikley situation, they didn't do this before)

jamesml

(Text removed by MSE Forum Team)

I have a company backed Amex as well - it has my name on it but I wasn't credit checked and its not on my credit file. Having said that, I am responsible for claiming my expenses and paying my amex. There are a couple of drivers for the change I suspect - a company card system where the company meets the bill means a lot of work for a team of people to try and find out what everybodies expense are actually for, classify and account for them properly. Not to mention people who put on things they shouldn't, etc etc. This systems puts the onus on the individual to get their act in gear - this way you have to actually claim it and the expense be approved to get the money back, rather than pay for it, and then ignore it on the basis that the card will be paid regardless. It also helps improve the speed people claim expenses if they know they have to pay the bill. Secondly, I hear Amex offer some pretty good info on company based cards to show spending etc, which is pretty key for big companies - they know how much they spend with which companies and as a result negotiate discounts if they can. Thirdly they'll get some semi decent kickbacks from Amex I would have thought.

But anyway - my main point is forget the speculation on here. Go and speak to HR and get all the facts about how it works, whether it hits your credit file, etc etc, and then go from there. I can't see how it would be 'illegal' to be honest, although you may think they are being dodgy its pretty unlikely a company which is big enough to get a corporate card scheme with Amex are trying to play tricks on its employees.

planteria

mrchiggles wrote: »

I've got the same arrangement with my employer (I suspect a couple of us posting on this thread might share the same employer....)

Worth noting these cards aren't connected to your credit file so don't affect your financial position at all - which is just as well given how much sits on mine every month!

I get membership rewards points as well which I can spend how I want so it's not all bad!

right. so perhaps we are all barking up the wrong tree, and this card is actually a Company card afterall? that would explain the company being able to see it, access it, and spend on it.

planteria

jamesml wrote: »

But anyway - my main point is forget the speculation on here. Go and speak to HR and get all the facts about how it works, whether it hits your credit file, etc etc, and then go from there. I can't see how it would be 'illegal' to be honest, although you may think they are being dodgy its pretty unlikely a company which is big enough to get a corporate card scheme with Amex are trying to play tricks on its employees.

totally agree.

InsideInsurance

Bedsit_Bob wrote: »

What happens if your bank declines to issue/withdraws the card?

The employer is a guarantor on the card and so I suspect the likelihood of it being refused or withdrawn is slim.

I work in financial services where credit checking is a basic part of the employee selection process so have never come across the situation of someone with a truly terrible credit history applying for a corporate card so cannot say how many sins the card issuer will ignore due to the backing of the corporate entity

System

My last corporate AMEX card worked like this too.

I would suggest you need to be aware of the political situation in work, do you really want to ruffle any feathers with collegues for something like this?

As for the security issue, I wouldn't worry too much as our team admin staff used to book flights, etc with no issues. Any issues and they can sort them for you.

jamesml wrote: »

I have a company backed Amex as well - it has my name on it but I wasn't credit checked and its not on my credit file. Having said that, I am responsible for claiming my expenses and paying my amex. Secondly, I hear Amex offer some pretty good info on company based cards to show spending etc, which is pretty key for big companies - they know how much they spend with which companies and as a result negotiate discounts if they can. Thirdly they'll get some semi decent kickbacks from Amex I would have thought.