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Business Debt/applied for business credit card with personal signature

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Expert: - 8/6/2008


Question
I've got into a situation like this. I joined a company several years ago and applied on the company's behalf a capital one credit card. I was totally ignorant and filled in my ssn and signed on the paperwork instead of company's EIN. I left the company the same year and didn't realize it's bounded to my own credit, now years after I was told that the owner default the payment and I was the person liable for that. I tried to ask for the page with my signature and see it has personal guarantee but the collection agent insisted on me promise the payment before she sent out the copy. Is there any way to resolve this? the card has $8000 outstanding. How can I resolve this in a proper way? I contacted the owner of the company,he refused to pay and told me he doesn't have the money even though I told him my credit will be affected by this. I didn't sign the back of the card, nor did I sign any purchase since I never used it. Am I still liable on this? How should I do this? thank you very much.

Answer
If you can prove the charges were made by the other party without your knowledge or consent you may be able to fight the balance. I would talk to an attorney and make sure that you are the only one listed on the card, if that is the case, you may be liable but check with a lawyer, because they would have to look at your paperwork to determine your situation and what your next step should be.
Good luck!

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Michelle Dunn

Expertise

As one of the Top 5 Women in Collections, one of the Top 50 Collection Professionals, and winner of the Business Excellence award, I can answer any questions about debt, debt collection, improving business credit, creating a credit policy, enforcing a credit policy and collecting on past due accounts. I can also answer questions in regards to starting a debt collection agency since I have been a bill collector for over 24 years, started and ran my own collection agency for 8 years, and maintain my 12 year old Credit & Collections Association for members of the credit & debt collection industry. I am also the author of the popular and award winning book "Starting a Collection Agency, how to make money collecting money" now on it's 3rd edition. This book has won a the Writers Digest self published award as well as the New York Book Festival Award. I am a repeat contributor to the Wall Street Journal, and have been featured on NPR, CNN, as well as many other national radio and television programs. I have also been featured in national publications such as the Wall Street Journal, Forbes, Smart Money, MSNBC and much more. I have 17 published books to my name and am an accomplished speaker and consultant. I currently write 9 columns for newspapers, magazines and online portals worldwide.

Experience

I have over 24 years experience in debt collection, I started and ran my own collection agency for 8 years and I am the founder & owner of my Credit & Collections Association that I founded in 1998. www.credit-and-collections.com

Organizations
My Credit & Collections Association, I was also a member of the American Collectors Association and Plymouth Chamber of Commerce for 11 years. I am a member of many writing groups as well as my local Women Inspiring Women chapter. I am a member of Know More Media as an expert for their blog on business credit.

Publications
Business NH Magazine, Smart Money Magazine, MSNBC, CNN, Forbes.com, The Wall Street Journal, Home Business Magazine, Entrepreneur Magazine and website, many books, newspapers and television programs as well.

Education/Credentials
I have written 17 books in my collecting money series and one for Entrepreneur Press called the Ultimate Credit and Collections Handbook. My newest book is being published by John Wiley & Sons in May titled, The Guide to Getting Paid, how to weed out bad paying customers, collect on past due balances and avoid bad debt. This book is also being sold to many colleges as a text book.

Awards and Honors
My book Starting a Collection Agency, how to make money collecting money won an award from Writers Digest and the 2007 New York Book Festival in the "How to" category. I have won 2 awards from Dun & Bradstreet and Governor Jean Shaheen. I was nominated as one of the Top 5 Women in Collections twice as well as having been selected as one of Collection Advisor's Top 50 Collection Professionals by my peers.

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