Brachers contacting me on behalf of Corporate Credit Card debt with Amex

eddddy

It sounds like the kind of corporate Amex agreement where the company (i.e. your ex-employer) and the cardholder are jointly liable.

Amex rely on the credit worthiness of the company, which is why you weren't credit checked, and it doesn't appear on your credit file.

So I suspect they are chasing both you and the company. (It's strange that the company hasn't chosen to pay, as this will affect there credit worthiness. Is the company in financial difficulties?)

They'll take the money from whoever gives up first and pays - you or the company.


But by not paying (and/or by using the card for personal expenses), you've probably breached your employment contract.

So if your ex-employer pays up, they might then sue you to get the money back.

i.e. Instead of getting sued by Amex, you get sued by your ex-employer.

[Deleted User]

Ben8282 wrote: »

Your situation has lost all credibility in my eyes therefore Im sorry but I cannot offer any further advice to you.

I'm sure the OP will be devastated.

Chino

Terry_Towelling wrote: »

Is this correct, because it doesn't sound like the normal sort of arrangement for someone with a corporate card? It sounds more like a personal card that you used for work expenses.

I've certainly had corporate credit cards where I, as the cardholder, was responsible for settling the statement balance and not the company (although I would be reimbursed by my company for the expenses incurred on the card).

northwalesd

I've had both types - expenses submitted by me and me submitting the payment to Amex, and (currently) submitting expenses and my employer submitting the payment.

In both cases, it was/is allowed to spend personal amounts, and for the user to pay the personal amount direct to Amex.

leehardy83

CamelLot - that reply made me chuckle


TerryTowel, Bris,Northwalesd,chino, edddy...thanks to each of you for taking the time to read and reply to my situation.



To answer some of the queries from you all:
Terry -

• Yes, we were expected to submit our expenses each month in full. We were also allowed to use it for personal things as long as you cleared the balance each month. This wasnt hugely tracked and for the past couple of years at my old company - I always had a balance of 1-2K but usaully managed to submit enough for AMEX to be OK although id sometimes receive late payment charges for not being able to pay the full amount. Thats not technically submitting the balance in full but my old employer never said anything and as long as I managed this with AMEX, there were no repurcussions other than me accruing late payment fees.


•I think I do need to contact the old company and find out what happened with my final expenses yes, but I am also eager to get a suitable reply back to AMEX before this pre-action protocol deadline runs down.


•I also may try speak to both my old employer and AMEX then to ask for the signed credit agreements to read what i signed up for


Edddy -

• I always thought myself and my ex employer were jointly liable. I expected to be chased by them at some point. I would then say OK, but i think you guys have rejected some of my big final expenses and then i would agree what is left after they are deducted and then settle payment with them. I didnt expect AMEX to come to me directly via their solicitors. As I said, unfortunately when having to leave the role to care for my mother - this sort of stuff just went to the back of my mind,.



Everyone else - thanks again for your input, its much appreciated.



Overall - I am happy to come to an arrangement to clear the balance, I just needed to understand a few things as we've touched upon.
•Am I solely responsible or is there joint liability?
•What should i request to understand more - a credit agreement signed from both AMEX and my ex employer (large multinational IT firm)?
•What I actually owe if ex employer submits my final expenses i assume are unnapproved
• Ive had debt problems in the past but finally managed to sort them on my credit file and now have no defaults that show on my file. I would really like to avoid having one again.They dont report it to the credit agencies so i dont know if they can default me? I assume they can ccj me if it went to court which i will definitely avoid even if it means clearing it all by the end of the month somehow



Anyway, thanks for everyones help again

Ben8282

leehardy83 wrote: »

CamelLot - that reply made me chuckle


TerryTowel, Bris,Northwalesd,chino, edddy...thanks to each of you for taking the time to read and reply to my situation.



To answer some of the queries from you all:
Terry -

• Yes, we were expected to submit our expenses each month in full. We were also allowed to use it for personal things as long as you cleared the balance each month. This wasnt hugely tracked and for the past couple of years at my old company - I always had a balance of 1-2K but usaully managed to submit enough for AMEX to be OK although id sometimes receive late payment charges for not being able to pay the full amount. Thats not technically submitting the balance in full but my old employer never said anything and as long as I managed this with AMEX, there were no repurcussions other than me accruing late payment fees.


•I think I do need to contact the old company and find out what happened with my final expenses yes, but I am also eager to get a suitable reply back to AMEX before this pre-action protocol deadline runs down.


•I also may try speak to both my old employer and AMEX then to ask for the signed credit agreements to read what i signed up for


Edddy -

• I always thought myself and my ex employer were jointly liable. I expected to be chased by them at some point. I would then say OK, but i think you guys have rejected some of my big final expenses and then i would agree what is left after they are deducted and then settle payment with them. I didnt expect AMEX to come to me directly via their solicitors. As I said, unfortunately when having to leave the role to care for my mother - this sort of stuff just went to the back of my mind,.



Everyone else - thanks again for your input, its much appreciated.



Overall - I am happy to come to an arrangement to clear the balance, I just needed to understand a few things as we've touched upon.
•Am I solely responsible or is there joint liability?
•What should i request to understand more - a credit agreement signed from both AMEX and my ex employer (large multinational IT firm)?
•What I actually owe if ex employer submits my final expenses i assume are unnapproved
• Ive had debt problems in the past but finally managed to sort them on my credit file and now have no defaults that show on my file. I would really like to avoid having one again.They dont report it to the credit agencies so i dont know if they can default me? I assume they can ccj me if it went to court which i will definitely avoid even if it means clearing it all by the end of the month somehow



Anyway, thanks for everyones help again

This post makes me chuckle as well! The first paragraph of your reply to Terry is so confused and improbable it really made me laugh.

phillw

leehardy83 wrote: »

•I think I do need to contact the old company and find out what happened with my final expenses yes, but I am also eager to get a suitable reply back to AMEX before this pre-action protocol deadline runs down.

I think the important thing for you to come to terms with is that if you signed up for the card and your employer only reimbursed you for expenses that they determined to be valid, then they aren't going to chase your employer & that will be your responsibility.

It seems like Amex do a "corporate card" where the employer gets a commission for getting you to sign up for what is essentially a personal credit card & if they refuse to pay you then Amex will only knock on your door.

Ben8282

Amex couldn't care less how you submit your expenses.
Amex couldn't care less about when and how your expenses are paid.
Amex couldn't care less about delays to payment of expenses.
Amex couldn't care less about if the card is used for personal use.
Amex couldn't care less about who actually paid the bill.
Amex care about one thing and one thing only- PROMPT ON TIME PAYMENT OF THE FULL CHARGE CARD BALANCE EVERY MONTH.

A corporate card is, by definition, a card issued to the employees/directors of a company for which the company is liable, much the same as the principal cardholder who authorises additional cards to be issued on their account is liable for all spending by the additional cardholder. For their own protection, it is possible that Amex may have inserted a clause in the terms and conditions which provide for joint liability should the company fail to pay.

The fact that the OP has stated that (a) they have bad credit and (b) the card is not reported on their credit files supports this. This fact also supports the concept that the account is being reported in the name of the company which is very relavent to this situation.

Despite statements by certain posters to the contrary, I have never heard of a situation where corporate cards are paid individually by the cardholders. This would (a) put the company in an impossible situation regarding their own credit standing should the employee fail to pay on time (b) risk suspension of the other cards on the account until payment was received (c) risk cancellation of the account for unsatisfactory payment conduct (d) be an accounting nightmare for the company to ensure expenses claims were promptly submitted and paid to the employee to meet the Amex payment deadline and (e) defeat the whole objective of the corporate card which is to simplify the expense claim/accounting procedure.

There is also the question of why a company would do things this way. As the company is liable for the payment of the corporate account, why pass the money to the employee to pay and expose themselves to the risks that that would entail? What if the employee didn't pay? The company would then have to pay twice. It's like if you had an additional cardholder on your credit card account and they used their card to purchase something that you were going to pay for, would you hand over the money to them and tell them to pay the credit card company or would you just pay your credit bill yourself?

Regarding the question of use of such cards for personal purchases, while certain companies may turn a blind eye especially as far as their directors are concerned, this is almost always a big no no and usually treated as gross misconduct. It is in reality the equivalent of employees 'borrowing' from the till. In any event it would be incurring debt in the name of the company for which the company is not liable but would become liable for as a result of the employees actions.

Furthermore Amex do not allow repeated late payment charges. I believe they apply a 'three strokes and you are out' rule. Account cancelled at third late payment charge, and I don't just mean three consecutive late payment charges. Amex will not tolerate their charge cards being used as credit cards by payment of late payment charges.

msallen

Ben8282 wrote: »

Despite statements by certain posters to the contrary, I have never heard of a situation where corporate cards are paid individually by the cardholders.

Despite your attempts to come across as the all-knowing guru on this I have only ever had one corporate card (a Diners charge card, from about 1996-2005) and it was paid by me, with no restrictions on personal use, and no linkage to my expense claims.

northwalesd

Ben8282 wrote: »

Despite statements by certain posters to the contrary, I have never heard of a situation where corporate cards are paid individually by the cardholders.

Whether you've heard of it or not it's real (or was).