If I owe money to a previous employer?

[Boras06]

What is the name of your state (only U.S. law)? VA

Hi…at my previous job, I had a travel credit card that I used on a trip right before I left the company. The card was under the company’s name, not mine. When I left that job, it ends up that I did not pay the card in full. The reason for this was that I had an outstanding debt with the credit card company (under my own name), and when thought that I was paying for my travel card (I did not include a statement, as one was not mailed to me), that money was instead applied to my outstanding debt. This all happened over three months ago.

About a month ago, my former employer started to call me, asking about the debt I had with the travel card. At first, I was under the impression that I had paid it off. Only after investigating with the credit card company did I discover that the funds were applied to the wrong account. I have contacted my former employer several times to try and work out some sort of payment plan with them, as I don’t have $8,000 to pay them (the outstanding amount on the travel card).

Today I received a FedEx letter from that company’s legal representation. They are demanding that I pay the full amount within 6 days. What can I do? I feel as though I have made a good faith effort to work out payment with my previous employer, yet the automatically (and without any warning) send me to their lawyers. Do I have any rights?

[HomeGuru]

Originally Posted by Boras06

What is the name of your state (only U.S. law)? VA

Hi…at my previous job, I had a travel credit card that I used on a trip right before I left the company. The card was under the company’s name, not mine. When I left that job, it ends up that I did not pay the card in full. The reason for this was that I had an outstanding debt with the credit card company (under my own name), and when thought that I was paying for my travel card (I did not include a statement, as one was not mailed to me), that money was instead applied to my outstanding debt. This all happened over three months ago.

About a month ago, my former employer started to call me, asking about the debt I had with the travel card. At first, I was under the impression that I had paid it off. Only after investigating with the credit card company did I discover that the funds were applied to the wrong account. I have contacted my former employer several times to try and work out some sort of payment plan with them, as I don’t have $8,000 to pay them (the outstanding amount on the travel card).

Today I received a FedEx letter from that company’s legal representation. They are demanding that I pay the full amount within 6 days. What can I do? I feel as though I have made a good faith effort to work out payment with my previous employer, yet the automatically (and without any warning) send me to their lawyers. Do I have any rights?

**A: yes you do have rights. You have the right to pay the debt.

[Boras06]

But do I have the right to arrange payment options rather than be forced to pay the full amount?

[seniorjudge]

Q: But do I have the right to arrange payment options rather than be forced to pay the full amount?


A: No.

[HomeGuru]

Originally Posted by Boras06

But do I have the right to arrange payment options rather than be forced to pay the full amount?

**A: yes you do. You have the right to make one installment payment for the total balance due and owing.

[Boras06]

...and if I don't have $8K to make the payment?

[HomeGuru]

Originally Posted by Boras06

...and if I don't have $8K to make the payment?

**A: shall we take up a collection for you?

[Boras06]

No...I am just looking for some legal advice that is helpful. Not flames.

[Texas Pooh]

You have few legal rights in this situation. You will be sued, and your employer will win. They will then be entitled to collect the judgment, as would any other creditor. In the process, your credit will likely be ruined. There is absolutely no way to avoid this result.

I'll bet your situation is that you were given an expense account check for the monies spent on the travel card, which you then used to pay your personal credit card. In short, you have stolen from your former employer. Your former employer, of course, has had to pay the credit card company, so it is out of pocket the amount of the debt.

Your former employer is NOT obligated to extend you a loan while you make payments on this debt. Since you are a former employer (either through your choice or theirs) they have absolutely no incentive to work this out with you.

Get a loan, or another credit card, and get the employer paid off.

[Boras06]

Texas...thank you for the advice. That is what I was looking for. I think I might be able to come up with the money, but it will take longer then 6 days. In your opinion, do you think the law firm will allow for at least a one week extension?