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Business Debt/LLC & Credit Card Debt Collection

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Expert: - 6/20/2009


Question
Ms. Janklow, again I want to thank you for your previous response to all of my questions.  After days of continuous deliberation over the circumstances, I do have another question relating to collections on an business credit card account.  Collection activity has begun on a credit card account for an LLC,against an individual who has been "declared" primary account holder. The Bank of America will not provide transaction information as to who expended the funds or information as to the accounts where cash advancements made on distributed and subsequently charged to the card i.e, $10,500, $4,500.  The "declared" primary account holder has never used or had access to the card, but NOW knows who made many of the nonrelated business charges, or personal expenditures. It the individual who made those charges were known employees of the LLC, can those individuals be forced to pay those particular charges
and if so, through what means?  Rental cars must show what and who was driving, and cash disbursements certainly were distributed into a known bank account of sorts.  If the owner of the LLC gave an employee the card, distributed in the "declared" primary's name, for his personal use, what recourse, if any, does the "primary" account holder has being that he is the sole individual being sought for payment?  Thank you again, in advance.

Answer
Dear G:
I appreciate your due diligence regarding your situation, but it seems a futile effort because unless this is a clear case of fraudulent usage of your credit, the bank will continue to pursue you. It does not matter to them if you can argue who placed charges on a trade line, if you are the guarantor. If you want to look for a way to pursue collections against the individuals who did so, than I highly suggest you consult with a collections or small claims attorney to review your case and determine if that is viable. Bottom line is that the bank has made its determination based on you being the most likely candidate (guarantor) with the ability to pay - you have to play on that assumption and find the best and most cost effective way to absolve the debt. I wish you the best, feel free to write back and let me know how it turns out.

Respectfully,

C. Janklow  

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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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