Corporate Credit Card- Can they report deliquent?

[Anonymous]

Hi, in short I have been on short term disability for six months because of a bad back, and am getting back surgery.  I recieved 50% of my income for a few months and now I am down to zero.  I don't have the money to pay the bill, its an American Express Corporate Card and they want it all paid at one time which is about 618.00. Now the card was issued through my company a Fortune 50 company but it does have my name on it.  They never reported to any of the bureaus that I was paying it on time when I was paying it, the card never showed up on my credit.  Now that I am behind they are threatening me, telling me they will put it against my credit for non payment.  Can they do this?  If they are not reporting the good payment history can they just decide to report the bad?? I don't see how they could be legally allowed to do that, either you report it for the good and the bad or not at all.  So what does anyone think out there?  Can they send it to the bureau's as a bad debt?   By the way I do send them about 50 dollars a month as good faith payments....

[Anonymous]

there is no obligation to report good history. I don't believe they can legally report the negative history. in fact, i think it would be your employer responsibility to settle the bill if you don't.

[MattH]

Corporate Cards usually don't appear on the CRs unless they go delinquent, then they do appear and in most cases the individual is legally liable for the balance.  To get the card you had to sign an agreement in which full details were spelled out, but in nearly every case with which I am familiar they can and will go after the individual: they can sue, they can garnish income, they can file liens on assets, they can post derogs to the CRAs, etc.

In my case, my AMEX Corporate Card has never appeared on my CR, but if it went delinquent that WOULD appear, and I would be fully liable: our mandatory training regularly reminds me of this reality.

Message Edited by MattH on 01-20-2009 11:46 PM

[Anonymous]

Where I work (also a Fortune 50 company) it works as described by MattH above. The corporate AmEx accounts don't report to the CRAs if they're in good standing, but they can and do report if they go delinquent. The company also has an agreement with AmEx that if the account remains unpaid for a certain amount of time (maybe 180 days past due, I'm not sure), then the company will reimburse AmEx and the employee is then responsible for reimbursing the company. I think by the time it got to the point where that would happen, though, AmEx would already have trashed your credit pretty comprehensively.

[Anonymous]

matty - I would contact my HR person ASAP about this. My experience is a little different. I also have an AMEX corporate card and it HAS been reporting every month for as long as I have had it - some 20+ years.

I use the card for business travel and expenses only - and when I receive my reimbursement check from my employer - usually with 10 working days - I pay my corporate card account in full.

You do not want AMEX  reporting baddies - because they most ceretainly will. If you have to, I might want to tell your HR person you no longer want the card, and have them close it. I would also discuss with HR how they might be able to assist you in paying this balance off until you can get back on your feet.