Can't pay balance on Corporate Card

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rlh6805
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Can't pay balance on Corporate Card

Postby rlh6805 » Thu Nov 12, 2015 5:37 pm

Hello all,

I think I completely screwed. I have a Corporate AMEX card which I charged up $75k in personal expenses on trying to start a new business. I failed... Now I am close to 45 days past due and am not sure what is going to happen. My company is not going to pay it so I'm certain I'm in for collections. I've tried to call AMEX and talk to someone but their customer service is clueless. I suppose I need to wait until I actually get sent to the collection department to talk to someone who can give me straight answers. Does anyone know what I'm in for? I would like to set up a payment plan, I could pay up to $1k/mo which would put me over 6 years to pay it off. I already talked to an attorney and he said to just wait for the call or letters to start the negotiations. I really screwed up and this is going to impact me for quite some time. I want to pay it and am hoping that I am given the chance.


Tubpbs
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Re: Can't pay balance on Corporate Card

Postby Tubpbs » Thu Nov 12, 2015 6:33 pm

1. Corporate or Business card?

2. Are you the only member of the organization? I understand it's implied that it is your credit, but is anyone else responsible for the business?

3. You call these "personal expenses". Are you calling them that because the business "failed" or because it was spending for yourself?

4. When you talk about paying 1K a month for 6 years, are you ignoring the possibility of a penalty and or them charging you interest?


I would be very surprised if they took a multi year payment plan.

You are right that you need to let the shit hit the fan so to speak before you have any chance to resolve it in a way that is possible for you.

Your best bet ultimately is to pay them absolutely $0 and get a massive discount and charge off the balance and you both eat it so to speak. They will destroy your credit and you will have to pay. You will also likely agree to receive a 1099 for the write off which will mean you will have to pay taxes on the write off.

Let me know if any of that was less than clear.

I can respond more substantively if you have further and more specific questions.
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rlh6805
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Re: Can't pay balance on Corporate Card

Postby rlh6805 » Thu Nov 12, 2015 10:28 pm

Thanks for the reply

Answers to your questions:

1) Corporate Card
2) I am not the only member of the organization. This is a corporate card from a big company.
3) This was spending for myself
4) I am not including interest or penalty's.

I unfortunately am feeling the same way. I think the end result of this will be a lawsuit. I hope not, of course... I know that my credit will be gone for sure no matter what happens. I am waiting for them to actually contact me. I have about half ($35k) that I could pay if I sold off some investment funds. My attorney told me not to sell anything until they make a move. Even he doesn't know what will happen next.

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FastSRT8
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Re: Can't pay balance on Corporate Card

Postby FastSRT8 » Fri Nov 13, 2015 2:40 am

This does not look too good at the moment.

you have a battle on two fronts. Both the company you work for and Amex.

I suggest you wake your lawyer up and have him work out a plan B.

IMO I feel you have poor representation and your lawyer should be replaced. No lawyer worth his grain in salt will tell a client he doesn't know what will happen next. That's just plain useless.
Carpe diem quam minimum credula postero!

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FastSRT8
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Re: Can't pay balance on Corporate Card

Postby FastSRT8 » Fri Nov 13, 2015 2:45 am

Hell, strike a plea deal with your company if you have to.

Pay them the $35K in exchange for them to settle th entire bill with Amex.

Then you only have to deal with your employer. Atleast it's only one opponent.

Your lawyer should be coming up with these type of options for you.
Carpe diem quam minimum credula postero!

Tubpbs
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Re: Can't pay balance on Corporate Card

Postby Tubpbs » Fri Nov 13, 2015 6:06 am

I don't mean to push further... But I have more questions.

1. Is the credit in your name? Your original post made me think so, but this makes me think no. If it's not in your name, your liability is diminished considerably, perhaps to nothing. It's not good and it's not the right thing, but it changes things a lot in my opinion.

2. How did you get 75K as a soft or hard limit from Amex if it was?

3. Over what period of time did you make these charges?

4. What kind of company do you work for?

5. Does the company know about this? And what has been there reaction / response to you so far?

Thanks. Still semi confused.
Amex - BCP, Platinum, Business Gold
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rlh6805
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Re: Can't pay balance on Corporate Card

Postby rlh6805 » Fri Nov 13, 2015 7:43 am

Tubpbs wrote:I don't mean to push further... But I have more questions.

1. Is the credit in your name? Your original post made me think so, but this makes me think no. If it's not in your name, your liability is diminished considerably, perhaps to nothing. It's not good and it's not the right thing, but it changes things a lot in my opinion.

2. How did you get 75K as a soft or hard limit from Amex if it was?

3. Over what period of time did you make these charges?

4. What kind of company do you work for?

5. Does the company know about this? And what has been there reaction / response to you so far?

Thanks. Still semi confused.



1) This is what I am wondering too and no one can give me a straight answer. The card is from my company (Corporate Card) but is in my name. I've had it for over 10 years and don't remember what I had to do to get it. It does not show up on my credit report.

2) Not sure how the limit was established

3) It's been over the past three years. I was using the card to fund a side business and was paying each month no problem. Then the business failed and I could not make last months payment ($75k).

4) It is a big corporation

5) Yes, the company knows about it. Their stand is that I am responsible to pay but maybe they really don't know how is actually responsible either.

Tubpbs
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Re: Can't pay balance on Corporate Card

Postby Tubpbs » Fri Nov 13, 2015 7:57 am

rlh6805 wrote:
Tubpbs wrote:I don't mean to push further... But I have more questions.

1. Is the credit in your name? Your original post made me think so, but this makes me think no. If it's not in your name, your liability is diminished considerably, perhaps to nothing. It's not good and it's not the right thing, but it changes things a lot in my opinion.

2. How did you get 75K as a soft or hard limit from Amex if it was?

3. Over what period of time did you make these charges?

4. What kind of company do you work for?

5. Does the company know about this? And what has been there reaction / response to you so far?

Thanks. Still semi confused.



1) This is what I am wondering too and no one can give me a straight answer. The card is from my company (Corporate Card) but is in my name. I've had it for over 10 years and don't remember what I had to do to get it. It does not show up on my credit report.

2) Not sure how the limit was established

3) It's been over the past three years. I was using the card to fund a side business and was paying each month no problem. Then the business failed and I could not make last months payment ($75k).

4) It is a big corporation

5) Yes, the company knows about it. Their stand is that I am responsible to pay but maybe they really don't know how is actually responsible either.


I don't know how much it matters who's technically responsible for the card. I still don't quite understand how the whole thing is really possible given the info you've provided but my feeling is that if you refused to pay let's say, they would press charges against you and succeed fairly easily.

This was all from one month? 75K? What happened to the business over night?
Amex - BCP, Platinum, Business Gold
BoA - BankAmericard Cash Rewards
Chase - Freedom, CSP, RC, Ink Plus
Citi - DC, Prestige
Discover - It

rlh6805
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Location: United States

Re: Can't pay balance on Corporate Card

Postby rlh6805 » Fri Nov 13, 2015 8:30 am

Tubpbs wrote:
rlh6805 wrote:
Tubpbs wrote:I don't mean to push further... But I have more questions.

1. Is the credit in your name? Your original post made me think so, but this makes me think no. If it's not in your name, your liability is diminished considerably, perhaps to nothing. It's not good and it's not the right thing, but it changes things a lot in my opinion.

2. How did you get 75K as a soft or hard limit from Amex if it was?

3. Over what period of time did you make these charges?

4. What kind of company do you work for?

5. Does the company know about this? And what has been there reaction / response to you so far?

Thanks. Still semi confused.



1) This is what I am wondering too and no one can give me a straight answer. The card is from my company (Corporate Card) but is in my name. I've had it for over 10 years and don't remember what I had to do to get it. It does not show up on my credit report.

2) Not sure how the limit was established

3) It's been over the past three years. I was using the card to fund a side business and was paying each month no problem. Then the business failed and I could not make last months payment ($75k).

4) It is a big corporation

5) Yes, the company knows about it. Their stand is that I am responsible to pay but maybe they really don't know how is actually responsible either.


I don't know how much it matters who's technically responsible for the card. I still don't quite understand how the whole thing is really possible given the info you've provided but my feeling is that if you refused to pay let's say, they would press charges against you and succeed fairly easily.

This was all from one month? 75K? What happened to the business over night?


I agree. In the end, regardless who is actually responsible, I am the one who is going to get sued. Of course I don't want it to get to that point, that's why I'm hoping that I can make payments on the amount owed.

As far as the business goes, I had a business partner sell some inventory which proceeds were to go to pay the bill. I have my attorney working on trying to get some of the money but I don't think he has it anymore. This whole thing is a big mess but in the end it was my name on the AMEX card so I have to pay one way or another.

Tubpbs
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Re: Can't pay balance on Corporate Card

Postby Tubpbs » Fri Nov 13, 2015 11:39 am

But why were you using the corporate card for your business venture in the first place? How can you be able to pay 75K last month and not this?

What was the typical amount of spending on the card on a monthly basis?
Amex - BCP, Platinum, Business Gold
BoA - BankAmericard Cash Rewards
Chase - Freedom, CSP, RC, Ink Plus
Citi - DC, Prestige
Discover - It



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