Credit card debt

[Sterl]

While president of a corporation, I applied for and received an American Express Card.
This card was used for business purposes. After a nasty divorce, I signed my stock over to my ex-husband, resigned as president, and left the state. When I signed everything over to my ex-husband, he assumed all of the outstanding corporate debt. There was about $600 owed on the American Express Card. This was in 1994. I explained to the customer representatives at American Express that the corporation owed the bill. I had not heard from them until about a week ago. Now they say I skipped the state still owing them. The corporation is no longer operating. What am I supposed to do?

 

[I AM ALWAYS LIABLE]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by Sterl:
While president of a corporation, I applied for and received an American Express Card.
This card was used for business purposes. After a nasty divorce, I signed my stock over to my ex-husband, resigned as president, and left the state. When I signed everything over to my ex-husband, he assumed all of the outstanding corporate debt. There was about $600 owed on the American Express Card. This was in 1994. I explained to the customer representatives at American Express that the corporation owed the bill. I had not heard from them until about a week ago. Now they say I skipped the state still owing them. The corporation is no longer operating. What am I supposed to do?<HR></BLOCKQUOTE>

My response:

First, American Express is in privity of contract with you . . . not just the corporation and, as such, they don't care (nor is it any of their business) who made a "side agreement" to pay the debt. They have a legal right to look directly at you. However, and despite how the contract was formed, and who later "assumed the debt," it seems to me that they have a bit of a "Statute of Limitations" problem, which is 4 years on a written contract. But, if your ex-husband made payments since 1994, say for example, up to 1998 and then stopped, they may be within the Statute of Limitations because then the Statute runs from the date of the last payment on an "open book" account.

Good luck.

IAAL



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