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Question
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? thank you very much.
Rina:
Thank you for your inquiry. I regret that you have had the unfortunate displeasure of being on the hook for someone else debts. If the debt was recently defaulted on, than it is already in a collection status. You can dispute the debt in writing asking creditors for a Validation of Debt (You might find some examples of letters or language based on what is recommended per the Fair Debt Collections Practices Act), which will give you 30 days (collection free) to research your relationship to the liability and come up with a plan. If you believe you can get the company to pay for it, than you should send them a letter or call them to put them on notice (strongly advise seeking legal counsel). If you can not get them to step up to the plate and pay what THEY owe, than you may need to try to negotiate a settlement on the debt and get it paid off that way. Don't start making promises to pay or payments unless you are certain about the liability. Taking a few dings to your credit is worth not repaying $8K that might not be yours to pay. I hope this was helpful.
Respectfully,
C. Janklow
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Answers by Expert:
Christine Janklow
Expertise
As President of SettleSource,Inc. a business debt settlement firm, I invite you to inquire about all aspects of business debt solutions to best determine which may be most appropriate. If you have questions such as: What is debt settlement and how process provide debt relief to my business? What options are available to deal with my business debts? Is it possible for a business owner to negotiate their own settlements? Why is debt settlement preferable to filing a bankruptcy or debt consolidation? Why are creditors willing to provide settlements to a business? How will settling debts affect credit scores? or How to rebuild a business after debt is eliminated. Please ask it now! For more information regarding how debt settlement can help your business, please visit www.SettleSource.com and place your inquiry. Mention All Experts to have a confidential no cost consultation with Christine. If this is your business situation time may play a very important factor in getting matters resolved proactively before they have negative affects on the business.
Experience
My expertise is specific to providing business solutions that will have profound positive impacts on the financial health of businesses. I have 25 years experience as an entrepreneur and have developed national sales programs; strategic alliances; product development; marketing programs; business and turnaround plans and debt settlement programs all providing methods to improve the financial outlook for large and small businesses. In the area of commercial debt settlement I have over 10 years experience working with large and medium corporations and closely held businesses to enable successful debt reduction and turnaround. I am a professional debt arbitrator and have negotiated with major banking institutions as well as vendors, suppliers and other trade creditors.
Organizations
Provisors;Turnaround Management Association; Los Angeles area
Publications
Accounting Today; Web CPA; National Restauarant Association;Los Angeles Daily News; Today Magazine Monthly series of business articles entitled "Brand News."
Education/Credentials
Bachelor of Business Administration; Associate of Arts Merchandising
Past/Present Clients
American Airlines, American Express, Safeway Inc., New York Life, consumer products manufacturers; retailers, food service industry and other small businesses and service providers.
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