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Corporation credit card debt Vs Personal debt.


rpooh421
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I was president of a corporation in NYS that had been issued credit cards. The corp. closed down went out of business, owing on these credit cards. Now, Debt collection companies are trying to come after me personally. Advanta business cards was the original creditor, but now Federated Capital corp is suing me personally. Can anyone help me. As I said it was a Corporation and I Was president and the card was used solely for business purposes. any information will be greatly appreciated.. I have a court date in March..

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The personal guarantee clause in the Terms and conditions of a business card are a very tricky thing for a credit card company to enforce. When I have had a business card from my employer I never say the terms and conditions, therefore could not be legally bound by them.

It would be a hard thing to get around if it was a personal business where you are the only person in the company. However in a business of any size, they are going to have to prove you received them personally or were aware of.

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When I have had a business card from my employer I never say the terms and conditions, therefore could not be legally bound by them.
Are you inferring that if you don't read off the terms and conditions of a credit card application that yuo aren't bound by those terms? I'm trying to clarify...
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Exactly, if you have not seen the terms and conditions because say the accounting dept kept the paperwork that came with the card how can you be bound to them? I believe that if someone pushes back on the basic assumption of use and acceptance, they are going to be hard pressed to make a case.

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  • 2 weeks later...

I been told to ask them to prove I made the charges and that they where personal and not business.. Also I have cancelled checks made out to Advanta from the company. There lawyer representing the the collection company said I signed an agreement. i asked for it and he just sent a copy of an agreement but had no signature on it and plus you couldn't even read it. Advanta wrote off this as a bad debit adn this company came and bought it, I have a date to appear on March 9th. lets see what happens. I am going with ADvanta was for small businesses and my company was a small business but also a corporation. So the corporation is should be liable i was just a signer.

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AS VP of a small business that had an Advanta "business" card, I can tell you that someone in your company (you?) personally guaranteed that if the company defaulted, it became a personal debt, regardless of whether or not the card was used for business or personal purchases.

If this debt was bought by a JDB, you'd be better off fighting it on "chain of custody", "accuracy of records", etc...all the things that others use to fight JDB suits.

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