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Amex business card- collection

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Anware91
Visitor

Amex business card- collection

I am in a really tough situation. I had a business card through my ex employer. I trusted them to pay the card off but that did not happen and has a big balance(66k) that is now in collection. I opened the card so from Amex perspective I am jointt and severally liable and owe the balance. I have been working to recover the amount from the business in litigation but that will take a long time to recover. In the mean time the account will be charged off as I have not been paid by the said business for almost 8 months and can't pay the card down. This is the only card that has ever been reported on my credit report(FICO score was 800) and I have no other significant debts on my personal cards. I am hoping to deal with this through settlement as I have no other options. Looking for advice on ways to approach this matter with collections and any other advice/support on how to best prepare myself for the mess that this is about to bring on. 

Message 1 of 3
2 REPLIES 2
K-in-Boston
Credit Mentor

Re: Amex business card- collection

Unfortunately, as you opened the account this was a personal guarantee and you are solely responsible for any and all charges made to the account.  Unlike corporate cards, responsibility on Amex Open division (all "Business" credit and charge products) cards is exactly that of the consumer division.  "Employee Cards" are synonymous with "Authorized User" cards in this respect.

 

Contacting AENB, you may be able to work out a payment plan prior to it being charged off. Otherwise, the process would be the same as for consumer cards and you would have the chargeoff appearing on your personal reports and be blacklisted by AENB for an indefinite period unless payment were made on the outstanding balance or a settlement for a lower amount was reached.

Message 2 of 3
Anware91
Visitor

Re: Amex business card- collection


@K-in-Boston wrote:

Unfortunately, as you opened the account this was a personal guarantee and you are solely responsible for any and all charges made to the account.  Unlike corporate cards, responsibility on Amex Open division (all "Business" credit and charge products) cards is exactly that of the consumer division.  "Employee Cards" are synonymous with "Authorized User" cards in this respect.

 

Contacting AENB, you may be able to work out a payment plan prior to it being charged off. Otherwise, the process would be the same as for consumer cards and you would have the chargeoff appearing on your personal reports and be blacklisted by AENB for an indefinite period unless payment were made on the outstanding balance or a settlement for a lower amount was reached.



Thank you for your reply. I currently don't have the means to make the payment they are offering me. I am looking for a job to help me get back on my feet. I spoke to a debt settlement company but it appears to more or less a scam and I can do the negotiation on my end. My current plan (a terrible one) is to let this charge off and see if I can settle for a lower amount and just take the hit on my credit. This is a lesson learned for me and I am screwed either way. 

Message 3 of 3
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