Am EX

[geodelpozzo]

Unfortunately, my wife was compelled to use her corporate American Express card (in her name) to pay bills when I was laid off a year ago. Recently we joined GreenPath Credit Counselors who began sending AmEx $295 a month to spend down the debt. The problem is AmEx will not agree to a credit plan for corporate accounts.

Yesterday a debt collector (NCO) called my wife at work and said if we didn't come up with the money by Monday ($14,000) they would sue her company for the debt. The questions are: Can they do that? What, if any, recourse do we have?

Thanks so much.

 

[cbg]

You're going to be lucky if your wife still has a job when this is over - that is, unless she had WRITTEN permission from her employer to use the card for her personal use. That is not impossible; I worked for one employer who didn't care what we used the cards for as long as we paid any personal expenses by the end of the month. But know that if she did not have permission, in writing so that the person who gave her that permission could not "forget" that he did so, she committed a firing offense when she used it for anything not work related.

The company issued the card to the employer with the understanding that they (the company) would be responsible for its payment. The company issued the card to your wife with the understanding that she would use it as intended. So yes, they can go after the corporation since they have ultimate responsibility for the card, its use and its payment. Your recourse is to hope like hell that the company is willing to be reasonable about this and allow you to make time payments with THEM.