First time poster. Thanks in advance for your feedback!
Here's the situation. I quit a company in 2006 and left a sizable personal balance on my Amex corporate card. The account was eventually charged off and is no longer on my credit. I was recently rehired with the same company, and as a requirement, I applied for a new corp card. Surprisingly, I was approved and given a new account. I thought I was in the clear until my manager received an auto-generated email showing the past due balance and advising me to pay the balance in full. I called Amex and the account was no longer in the "Amex system" and is now with a collection agency. The collection agency said the only negative impact this could cause is to my credit (which it has been removed).
My question is this...should I negotiate with the settlement dept and pay this off? Or, since I am no longer legally responsible for the debt, and my company is not liable, it seems a waste to pay a collection agency. Also, how is my company still receiving alerts regarding a charged-off debt that is not linked to my new account. I'm curious if the email was just a warning that my manager needs to remind me of policy, etc. I have not received any bill or effort to resolve the debt directly from Amex. Is it worth contacting my program administrator and asking these questions? Of course, that would may open a can of worms.
Here's the letter my manager received: Account status is 'Collections'
A recent review of your employee’s American Express corporate card account indicates that a high overdue balance existed at the point in time the report was generated. Details are listed at the bottom of this memo. Although this balance may have since been paid, we are requesting your assistance in addressing timely submission of expenses to decrease any balance still owed to American Express and to prevent future delinquencies on the account.
Please note that if there is anything other than "Active Account" in the Account Status field, then this account has already gone to collections and must be paid in full by the employee immediately. Although American Express Corporate cards are classified as personal liability (the employee is responsible to pay the balance), there is a financial impact to IBM if the card remains delinquent.
As a manager, you are authorized to take the actions listed below to resolve this matter. Please determine the reason for the high balance, the appropriate action to be taken, and respond to this request. Note: your employee should be made aware of any action taken.
PLEASE respond to this memo by clicking the "Edit" button above the letterhead, choosing a response below and clicking the Submit button above. Failure to respond within 2 weeks from receipt of this memo, will result in follow-up memos to additional levels of management.
I have reviewed the policy information with the employee, and will take the appropriate follow up actions should future instances of policy non-compliance occur. For Example, if the overdue balance is not paid in full.
In addition, I have contacted American Express to cancel or set limits on the employee’s corporate card.*
I reviewed the information in this memo and due to the circumstances no action is required at this time.
*To cancel your employee's charge card or set limits (as low as $0) on cash advances, retail spending or overall, please contact your American Express Card Company representative.