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Business Debt/Company card debt applied to personal wages

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Expert: - 3/31/2009


Question
My husband works for a very large multinational company. his dept is based in "North America." his company requires him to use a company credit card for all travel purposes, and travel is necessary for his work.
The credit company suspended then closed the account due to balance over 60 days.  they switched reporting and payoff agencies over a year and a half ago, and the "over 60" balance was a carry over from then... there is almost no way to prove what the charges were for or to find the expense reports from which the balance came....  He was told in a letter today that unless he pays off the balance on the closed account, he may be terminated.  He's paid over half the balance, but we simply can't afford the rest, and I believe its all company travel related expense.

My two questions are:  Can the company require that he pay this debt?
Will They be able to simply take the money from a severence package or from his wages?  
where should I look to the laws for more reference?  the Company is based in Oregon, the credit card is from North Dakota, and we live in Wisconsin.
Thank you for your time.

Answer
Alitia,
Since the card is a business credit card and not in your husbands name he would not be legally responsible.  If he signed anything with the company regarding the charges to this card he may be responsible.  
They could possibly deduct the money owed from his pay or severence package depending on the signed agreement he has with them.
I would seek the advice of an attorney, this sounds as though there must be more to it.  I would gather all contracts and agreements and past expense reports, checks, everything you have so the attorney can see what the pattern has been and will know what the situation is and can advise you better than I without all that information.

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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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