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Business Charges on Personal Credit Card

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SoBeNena

Junior Member
What is the name of your state? California

*Was also posted in Credit Card Forum

My husband was an executive in a struggling incorporated company. When there was not enough money to pay company bills, he used our personal credit cards to cover the expenses, ie, travel, postage, advertising, office supplies, etc. In the beginning, this was not a problem, but over the last two years, the company could barely make minimum payments. On a last attempt to salvage this company, the Board fired most of the Executives, including my husband. The reason given for termination, "misappropriation of company funds"- in other words, paying personal credit cards with company money, all of which were business expenses, approved and acknowledged by his CEO, but not by the Board. (The CEO was also fired.)
So, this is where we stand. Approx $ 100,000 in credit card debt in my name ($80,000 Amex in collections), and $100,000 in my husbands name. No payment has been made on any of the cards since his termination in April. The Board has acknowledged that the charges on the cards may belong to them, but have not offered to pay them. None of the charges on the cards were ever signed by me personally, and often, the cards were used by other co-workers of my husbands.
I have had a great credit rating my entire life, no late payments, never missing payments.
I am furious and ashamed.
To add insult to injury, my husbands former employer owed him two months salary, (due to financially struggles, they couldn't afford to give a paycheck- "but don't worry, we'll catch up " excuse) and a month of vacation pay. Of course, an accusation of "misappropriation of company funds" translates to no paycheck at termination and refusal of unemployment benefits...so, obviously, we are dead broke.
The only assets I have is my pre-marital rental property, which I do not want to lose.
What should I do?
 


Beth3

Senior Member
Approx $ 100,000 in credit card debt in my name ($80,000 Amex in collections), and $100,000 in my husbands name. OMG! For all intents and purposes, you and your husband extended $200,000 in loans to this organization and at an incredibly high interest rates for which you are liable.

You and your husband should seek the advice of a lawyer immediately. They Board of Directors clearly has no intention of voluntarily paying you back. You almost certainly will need to take legal action, or at least threaten to.

Good luck.
 

SoBeNena

Junior Member
Is there a way for me to handle this without an attorney? They have access to a dozen attorneys, and I have no resources to hire one myself. Seems trying to fight on my budget would be a battle lost before it even begins...
Could this situation be considered some kind of fraud? Using my credit cards without my personal approval? On what grounds can I take legal action against them?
 

mlane58

Senior Member
SoBeNena said:
Is there a way for me to handle this without an attorney? They have access to a dozen attorneys, and I have no resources to hire one myself. Seems trying to fight on my budget would be a battle lost before it even begins...
Could this situation be considered some kind of fraud? Using my credit cards without my personal approval? On what grounds can I take legal action against them?
As Beth stated, your husband needs to seek legal advice. Without the legal assistance you are in for a fight that won't have a positive outcome.
 

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