Do I owe on an S-corp credit card?
Date: Mon, 08/03/2009 - 19:20
I asked for DV and the CA sent me statement copies. All copies show that the account holder was my S-corp and I was an authorized user only.
How do I respond to the CA in this case? I know that S-corp debts are seperate from personal debts. Do I say that this is not my debt?
The S-corp allows the proprietor to limit his liability on the b
The S-corp allows the proprietor to limit his liability on the business to protect his assets and yet report the profit/loss through his personal income tax file. Therefore, the owner typically isn't responsible for the debts incurred by the business.
However, since I'm not an atty, take my advice with a grain of salt.
You said you were "authorized" on the card....tell them to FOAD.
You said you were "authorized" on the card....tell them to FOAD.
Agreed, been there with a CA over the whole authorized user bs.
Agreed, been there with a CA over the whole authorized user bs. What I would do is contact the OC or whoever the debt is currently owned by and record a conversation (alerting them to this of course) asking what there policy is on authorized user's and bad debt. They will choke for a minute but if they tell you blatantly that they pursue authorized users for debt you could be $1000 richer with FDCPA violation. You would just need the recorded phone call and a small claims court fee to do so.
The reality of it is you were an authorized user and not an applicant so attempting to collect a debt from a non-applicant is considered frivolous as they never had a contract with you and if this in any way affected your life and ability to get credit you can also sue for damages including re-reimbursement for higher interest rates.
