Dispute with AMEX

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brimed
 
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Dispute with AMEX

Postby brimed » Thu Dec 10, 2015 10:56 am

I was working for an employer as a consultant and he wanted to get new Plum cards. We filled out the application together, he putting in the Corporate Information and me putting in mine and other employees putting in theirs for the extra cards. Somehow, AMEX put me as the primary account holder. I had one charge for $32 ever on my card, but as the other full time employees racked up $60k in charges, they started calling me.

The company was making the payments in full for the first few months but then ran into cash flow problems (by now, I was no longer with them). Payments were made ewach month but not full amount. CEO didn't think anything of it because AMEX advertises plum card as "Pay in full or no interest for 60 days". To him, that meant after 60 days, interest was charged, but to AMEX it means it's due in full after 60 days.

Anyway, on day 61 I started getting calls that I owed all this money because I was the primary account holder (not sure how). I told them I wasn't the account holder, the charges weren't mine, nor was I even with the company. They didn't care and told me it was all mine.

every 30 days, payments were made by CEO (7-12k) but AMEX kept harassing me. Account has been closed but now, they have reported to my credit report that I'm 120 days past due. Anything I can do to fight this or straighten it out. CEO has told AMEX collections he is responsible and it was all a big mistake in the application process and he is committed to paying it off. Down to $19k now.

Help, I had perfect credit before all this and it has dropped significantly. I want to re-fi my mortgage but not at the rate quotes I'm now getting because of this.

Thank you!!!

Oh, and early on they told me the only way to clear my name was to file a police report stating the CEO illegally charged on my account. AMEX mess up and they want me to send someone to jail?


yfan
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Re: Dispute with AMEX

Postby yfan » Thu Dec 10, 2015 12:34 pm

Dispute it with the credit bureaus, and include a copy of the original application as documentation. Send Amex a copy of the dispute as well. If the application lists the company's EID (employer ID) and classifies it as a corporate card, you should be in the clear. It will be a bit of a hassle, but things shoudl clear up.

flan
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Re: Dispute with AMEX

Postby flan » Sat Dec 12, 2015 2:21 pm

yfan wrote:Dispute it with the credit bureaus, and include a copy of the original application as documentation. Send Amex a copy of the dispute as well. If the application lists the company's EID (employer ID) and classifies it as a corporate card, you should be in the clear. It will be a bit of a hassle, but things shoudl clear up.



The application almost certainly says he's responsbile. AMEX does not issue many cards to corporations, without a personal guarantee.

moral of the story: don't lend your credit to someone, without understanding what you're doing....

yfan
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Re: Dispute with AMEX

Postby yfan » Sun Dec 13, 2015 11:05 am

flan wrote:
yfan wrote:Dispute it with the credit bureaus, and include a copy of the original application as documentation. Send Amex a copy of the dispute as well. If the application lists the company's EID (employer ID) and classifies it as a corporate card, you should be in the clear. It will be a bit of a hassle, but things shoudl clear up.


The application almost certainly says he's responsbile. AMEX does not issue many cards to corporations, without a personal guarantee.

To me, that doesn't seem to be the case here. OP has not said he gave personal guarantee in the application, and that the CEO filled in the corporate information - which probably means the CEO signed the application as the CEO. OP also had no right to give personal guarantee on behalf of the corporation, since he was not even an employee, let alone a director. Lastly, the whole purpose of incorporation is to protect one's personal assets against loans to the corporation - banks can't just get around it by claiming personal guarantee. If it's a corporate card, only the corporation (and possibly, though still unlikely, its directors) may be held liable.

Tubpbs
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Re: Dispute with AMEX

Postby Tubpbs » Sun Dec 13, 2015 3:19 pm

I don't know that you're 100% correct there. That being said, it really doesn't matter because they are already finding him personally responsible and are treating the situation that way. So even if that is technically correct, it doesn't matter if they screw his or her credit all up and he has to fix it. My point is, right or wrong doesn't always matter. In this case, his breath would be wasted telling Amex about the corporate structure or who signed what etc etc because Amex has already made a very important decision in this instance: they decided, based off of the best information available to them, which is certainly a lot more than we all have, that he or she is the responsible party.

The OP's goal must be to get the balance paid as quickly as possible and hope no reporting occurs between now and then.
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flan
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Re: Dispute with AMEX

Postby flan » Mon Dec 14, 2015 6:25 pm

yfan wrote:
flan wrote:
yfan wrote:Dispute it with the credit bureaus, and include a copy of the original application as documentation. Send Amex a copy of the dispute as well. If the application lists the company's EID (employer ID) and classifies it as a corporate card, you should be in the clear. It will be a bit of a hassle, but things shoudl clear up.


The application almost certainly says he's responsbile. AMEX does not issue many cards to corporations, without a personal guarantee.

To me, that doesn't seem to be the case here. OP has not said he gave personal guarantee in the application, and that the CEO filled in the corporate information - which probably means the CEO signed the application as the CEO. OP also had no right to give personal guarantee on behalf of the corporation, since he was not even an employee, let alone a director. Lastly, the whole purpose of incorporation is to protect one's personal assets against loans to the corporation - banks can't just get around it by claiming personal guarantee. If it's a corporate card, only the corporation (and possibly, though still unlikely, its directors) may be held liable.


You don't know what you're talking about. You should probably learn, because everything your said in nonsense. Every single sentence in the quoted paragraph is false.

A creditor can require, as a condition of extending credit, that the cardholder personally guarantee that the charges rung up on the account will be paid. They can do that even when it's a corporation who is nominally the primarily responsible party. An individual can guarantee anyone's debts he cares to, whether they're of a corporation, another individual, or whatever. It is Amex's policy to generally do that for corporate cards; I've held corporate cards while the employee of fortune 500 firms, with revenues of tens of billions of dollars, but they still wanted little old me to guarantee the debt. It's a very common practice for lenders, particularly to corporations that don't have a long history of making money. (think about it: Would you lend money to an entity that when it fails to pay you back simply ceases to exist, leaving you with no recourse to get your money back? Or would you rather add a second (or more) party, who will have a much harder time dodging their obligation?)

I will bet a substantial sum that the OP gave a personal guarantee of the loan. He may not have realized he was doing so, because he's an idiot and didn't read the paperwork. It's possible there's some chicanery going on, and the CEO or somone forged a signature. But that's not the way I'm betting.



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