Amex business Card at default -Not my business

[cabronsaim]

I work as a manager for a small business that belongs to a family member.

About 6-7  years ago I opened a business credit card with Amex on my name for the business and used it actively for several years untill the business started going down and the bill started to grow. About 9 months ago Amex cancelled the card on me.

The bill is currently about $24k

It's been now about 3 months I haven't sent a payment and they have not hit my credit rating.

How does this work legally if I can't pay this?

The business isn't mine and neither is the debt. But the Card was open in my name.

I can't remember if they asked for the business Tax Id.

They surely have my SSN as I had a personal account with them too. The personal account is paid and closed.

[Anonymous]

Hello,

You may want to ask this question in the Business Credit section of the forum:

https://ficoforums.myfico.com/t5/Business-Credit/bd-p/businesscredit

American Express does not report business credit to personal credit reports which is why the lates have not yet impacted you.

However, most American Express small business cards are personally guaranteed, which means that the primary applicant of the account will be personally responsible for all charges and payments to the card. 

I do not have any personal experience with past due American Express small business cards; however, I would expect that collection activity will begin and those more than likely will impact your personal scores and credit. 

You may need to clarify whom opened the account for better advice from other forum members. I am a bit confused by whom actually opened the credit card. If you were simply an authorized user, you may not be responsible for the debt. If the last 5 of your account number is say 10015 that would indicate that you are an authorized user. If it ends 10001 with the zero second-to-last, you are the primary cardholder. 

[coldfusion]

---

@cabronsaim wrote:

I work as a manager for a small business that belongs to a family member.

About 6-7  years ago I opened a business credit card with Amex on my name for the business and used it actively for several years untill the business started going down and the bill started to grow. About 9 months ago Amex cancelled the card on me.

The bill is currently about $24k

It's been now about 3 months I haven't sent a payment and they have not hit my credit rating.

How does this work legally if I can't pay this?

The business isn't mine and neither is the debt. But the Card was open in my name.

I can't remember if they asked for the business Tax Id.

They surely have my SSN as I had a personal account with them too. The personal account is paid and closed.

---

That would depend on the circumstances under which the card was opened.  

f the business had been established enough to be issued a line of credit directly by AMEX then you normally wouldn't be personally liable.   However if you had guaranteed it personally you're responsible for payment regardless of the state of the business entity. 

I suspect this would be better served in the business card section. 

[K-in-Boston]

Amex business cards will report on the primary cardholder's credit reports if they become delinquent.

Yes, Amex always asks for the EIN when opening an account, and will accept SSN as the EIN for a sole proprieter.  To open the card, you would have needed to state that you had a principal relationship to the business.  Were you only an employee with no ownership in the company, or not named as an officer in the incorporation?  

If the card was personally guaranteed by you, it is your debt.

[cabronsaim]

I am not legally an owner but the business is to be my inheritance in the future. If it still exists.

I don't remember what I stated on the application.

[K-in-Boston]

In most cases for the small business side of Amex, there would be a PG involved.  I would call Amex to clarify your responsibility on the account and see what payment arrangements might be made in order to prevent the card from becoming further delinquent.  If there was no actual business interest, that means that things were misrepresented during the application, which can have further consequences.

[Anonymous]

---

@cabronsaim wrote:

I work as a manager for a small business that belongs to a family member.

About 6-7  years ago I opened a business credit card with Amex on my name for the business and used it actively for several years untill the business started going down and the bill started to grow. About 9 months ago Amex cancelled the card on me.

The bill is currently about $24k

It's been now about 3 months I haven't sent a payment and they have not hit my credit rating.

How does this work legally if I can't pay this?

The business isn't mine and neither is the debt. But the Card was open in my name.

I can't remember if they asked for the business Tax Id.

They surely have my SSN as I had a personal account with them too. The personal account is paid and closed.

---

Based on what you said, it's very likely an account based on your personal guarantee. I'll second the suggestion to call them and clarify whether it was in your name or another business principal.

If it was in your name/personal-guarantee then it is your debt. You owe Amex. The business would then owe you. If the business went downhill then you would have to attempt to recoup the debt from the business itself or its principals depending on how it was setup and protected.

This amount of money is definitely in the range where you'd want to discuss it with a lawyer to protect your interests and find a solution.

[cabronsaim]

Thanks to everyone for their responses.

[sccredit]

Amex has a hardship program, I would reach out to them and work a payment plan out before it is sent to collections and they report to your personal credit.