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Business CC (Amex) in JAMS - How to tell if there's a personal liability clause?


sillymonkey
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I managed to move my Amex (OC) cases into JAMS. We (husband and I) were being sued as consumers for all the cases. However, 2 of the 3 CCs are business CCs. I am only an authorized user. That means that under CO law, if it's a consumer CC, I am liable even as an authorized user spouse for 'household expenses' made on the CC. If it's a business CC then, as an authorized user, I should not be liable correct?

JAMS said the cases should come under the business arb and not consumer arb but they will make the OC pay all the fees upfront, per the CC agreement. JAMS will then leave the  arbitrator to decide if she/he will allow the case to continue as a business or a consumer case.

 

I know that if it's a business case, each side will be liable for 1/2 the arb fees. Does JAMS rules on fees superceed the CC agreement which states that Amex will pay the fees?

 

How do I know if my husband is personally liable for the business expenses? We only have a much newer revised 2011 agreement from the OC, not the agreement from when the account was opened (2007 & 2009 or so). The business agreements seem to be very similar to the consumer CC agreements. As far as I can see, there is no mention of personal liability for business debt in the agreement so does that mean we're off the hook? The business is a 1-person (hubby) LLC which is still running legally but really hasn't made $$ in years.  Husband is judgment proof and the business is worth less than $1.

 

So far, I've been working on my complaints as if the biz cases are consumer cases. However, I'm not sure what laws to refer to if it becomes a biz arb case. All my violations are based on the Uniform Consumer Code which does not apply to business credit.

 

Can anyone point me in the right direction to read up on business codes? I'm in CO. Thanks so much for your time!! :)

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As I understand things, Amex has a bulletproof contract that pierces the LLC veil and creates personal liability.

 

If you're being sued as consumers, then the Business arbitration wouldn't apply -- and would be MUCH cheaper for you.

 

I would check debtorboards on this subject, too.

 

JAMS may buy you some time, but the outlook isn't great.  :/  

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AMEX always requires a personal gurantee on "business" cards, even if you work for a large company.  Their is a clase in the T&Cs that says if the business doesn't pay, you will.

 

And, if you actually used the card for business, the FDCPA doesn't apply...and I would bet the "personal" arbitration clauses don't either.

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