Do you know if you are responsible for corporate credit card debt?
You need to find out if your card is either “holder accountable” or “company accountable”.
If the card is accountable to the holder then you’ll find yourself responsible for the debt whatever happens, unless you have a separate agreement that the company will be responsible to your company credit card debt under all circumstances.

If the card is accountable to the company, then they are responsible for the debt and not you, personally, unless you’ve been adding items to the account you didn’t have permission for, or you don’t have receipts to back up your expenses.

When you ask ‘Am I responsible for debt on my corporate credit card’ you’ll need to refer to the agreement you signed not only with your company, but also with the credit card company.
There’s no doubt that some credit card companies include clauses with their credit cards to make the holder accountable. The more people they can chase for any potential debt, the better for them.
There is some good news in that if your corporate credit card is in default by your company then the debt won’t appear on your personal credit file report.

If however, you were responsible for making the card payment each month and then reclaiming that back from your company as an expense, then the credit card company will treat you as the person to chase for the debt.

If a credit card company does list your default on your credit report, then you should dispute it and maintain it is the company’s responsibility. You can show the agreement you have with the company that they pay the monthly bill and that it’s their responsibility.

The problem comes when it’s your company that goes out of business and the credit card company can only chase you for the debt. If you end up with a court case you will need professional guidance, but the law should prove to be on your side. If you lose then you’re allowed to add a one hundred word statement to your credit report for future potential lenders to see.

You should ask if you are responsible for debt on corporate credit cards from your HR or accounting department before you get the card, not after use. If you feel like you may be responsible for the debt in the long run and you would like to avoid court and the negative marks of collections and judgments on your credit report, our debt settlement services can help.

This entry was posted on Saturday, January 17th, 2009 at 4:31 pm and is filed under Blog, Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.