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Business Debt/Bank of America set off company credit card debt with my personal checking account
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Question
My company closed and stopped paying credit card debts. The BofA card was in my name, and they have been attempting to collect the debt from me personally. I wrote multiple times to them asking for evidence that I assumed any personal liability (such as a signature on an agreement or other instrument). They would not provide it, and furthermore said I needed to subpoena the records. That is entirely false that I would need to effectively sue them to have them provide evidence that I actually was liable.
So, I did nothing in the meantime since they would not provide me with simple documents. They then, without warning, drained two personal checking accounts, claiming their right to off set the debt with other accounts in their bank. These were personal checking accounts, that were totally separate from the company, had never been used for company business, and were not in any way linked to the company.
The bottom line is, the debt is real, but the personal liability has not been proven despite multiple written requests. I retained counsel to send a demand letter for the return of the stolen money which was ignored. What right do they have to debit accounts that are not linked, used for business, or in any other way like kind to off set company debt on a card that they cannot seem to prove I am personally liable for.
James,
Were you the sole principal of your company? Was your company an LLC a Corporation or some other entity?
If you have retained counsel to contact them, I would not do anything and let that attorney deal with them. Once you have an attorney contact them, they can only deal with that attorney in relation to the debt. Now he can request the verification of the debt in writing, and they must provide it within 30 days after his written request. When you requested this information was it verbally or in writing?
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Answers by Expert:
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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