Debt collector for previous employer

[Stupeo]

Up until 31st Dec 2017 I worked for the UK business of a larger US entity, owned by one of the biggest conglomerates in the world. Any how, I ordered some software (think remote assistance for a “team”) on my corporate credit card at some point which wasn’t cancelled when I left, but tried to auto renew in Sept this year.

I obviously didn’t get the renewal emails or anything but I am now getting threatening letters from a collection agency saying I own 1000 euros.

The letter is addressed to the company but at my personal address.

The first letter I got, I forward to my contact at the US parent company but appears he’s done nothing about it!

What’s are my options?

I was made redundant from the UK company but it’s still trading.. I could pay the debt then take them to the small claims for it back?

[p4cks]

Next time you get one, write 'Not at this address' on the envelope and post it back (unopened)

[PurpleMoonlight]

How you paid is not the issue, it's how you effected the contract.

Was this clearly between the supplier and your ex employer, or was it perhaps in your personal name?

[Stupeo]

PurpleMoonlight said:

How you paid is not the issue, it's how you effected the contract.

Was this clearly between the supplier and your ex employer, or was it perhaps in your personal name?

So, if I recall correctly, I signed up for the software at the request of my line manager (who approved it) and filled in a form that asked for the company details and my billing details.

I’ve just checked the original letter from the software supplier and it’s addressed as follows:

Employer Name UK Ltd
My name
My personal addresss

The letter from the collections agency today is just:

Employer Name UK Ltd
My personal addresss

So I am inferring that the contract must be with the UK company? Not me?

[elanfan]

Simple really. Contact collections agency explain you’ve not worked for them for over a year and give them the address of the UK operations accounts department. I’d also tell them this will be the one and only time you’ll respond and any further correspondence will be filed in the bin. If they want the debt settled then they need to listen to what you’re telling them.

Clearly a business debt and nothing to do with you - they can’t sue you for it. Certainly do not settle the debt yourself it’s doubtful you’d ever get it back.

[PurpleMoonlight]

Stupeo said:

So, if I recall correctly, I signed up for the software at the request of my line manager (who approved it) and filled in a form that asked for the company details and my billing details.

I’ve just checked the original letter from the software supplier and it’s addressed as follows:

Employer Name UK Ltd
My name
My personal addresss

The letter from the collections agency today is just:

Employer Name UK Ltd
My personal addresss

So I am inferring that the contract must be with the UK company? Not me?

Yes, I would agree the contract is with the Ltd. Pity you used your personal address and not the Ltd address.

Anyway, I suggest you follow the above post.

[surveyor]

PurpleMoonlight said:

Stupeo said:

So, if I recall correctly, I signed up for the software at the request of my line manager (who approved it) and filled in a form that asked for the company details and my billing details.

I’ve just checked the original letter from the software supplier and it’s addressed as follows:

Employer Name UK Ltd
My name
My personal addresss

The letter from the collections agency today is just:

Employer Name UK Ltd
My personal addresss

So I am inferring that the contract must be with the UK company? Not me?

Yes, I would agree the contract is with the Ltd. Pity you used your personal address and not the Ltd address.

Anyway, I suggest you follow the above post.

I’d be guessing that’s because he paid on his own card...

[anonymous-user]

surveyor said:

PurpleMoonlight said:

Stupeo said:

So, if I recall correctly, I signed up for the software at the request of my line manager (who approved it) and filled in a form that asked for the company details and my billing details.

I’ve just checked the original letter from the software supplier and it’s addressed as follows:

Employer Name UK Ltd
My name
My personal addresss

The letter from the collections agency today is just:

Employer Name UK Ltd
My personal addresss

So I am inferring that the contract must be with the UK company? Not me?

Yes, I would agree the contract is with the Ltd. Pity you used your personal address and not the Ltd address.

Anyway, I suggest you follow the above post.

I’d be guessing that’s because he paid on his own card...

Why guess?

“I ordered some software............on my corporate credit card.......”

[surveyor]

REALIST123 said:

Why guess?

“I ordered some software............on my corporate credit card.......”

Works well if you have a corporate card...

[Starfighter]

Many conrporate cards link back to the person named.

[Countdown]

If it's a corporate credit card surely the monthly bills go to the Company and the Company should (normally) settle the bills automatically each month via Direct Debit?

OP - do you normally get the statements sent to your home address? If so I would have probably flagged this up to the your ex-employer a while ago. But, regardless, it's a corporate credit card, the company should be paying.

[Countdown]

PurpleMoonlight said:

Yes, I would agree the contract is with the Ltd. Pity you used your personal address and not the Ltd address.

Anyway, I suggest you follow the above post.

In our case the CC company has the personal name/address for each individual cardholder, partly for ID checks when they get issued with a CC, but also so that the statements can go to their home address.

[MitchT]

Countdown said:

If it's a corporate credit card surely the monthly bills go to the Company and the Company should (normally) settle the bills automatically each month via Direct Debit?

Ha ha - in a world governed by common sense... But in the real world, or at least in one of the "big four" where my OH worked for some time, you had a corporate credit card which you had to settle out of your own pocket and then claim it back as expenses!

[Stupeo]

Thanks for the replies all.

Just to be clear, the credit card was a corporate Amex that I believe ultimately the company was liable for - but it was in my name too. I paid it off in full every month after expensing everything through Concur.

[Countdown]

MitchT said:

Countdown said:

If it's a corporate credit card surely the monthly bills go to the Company and the Company should (normally) settle the bills automatically each month via Direct Debit?

Ha ha - in a world governed by common sense... But in the real world, or at least in one of the "big four" where my OH worked for some time, you had a corporate credit card which you had to settle out of your own pocket and then claim it back as expenses!

Fair enough. Although if that's the case there's no benefit to either your OH or the company in having a "corporate credit card". It's basically just a personal credit card that your OH uses only for business related expenses.

[Durzel]

How does a business claim back VAT on invoices that are made out to an employee's home address? Why would the home address of an employee be used when buying something for the company?

I get that internally that Amex know what cards are assigned to which employee, and where to send individual statements, but what has that got to do with purchasing?

Am I missing something really obvious?

[Starfighter]

Stupeo said:

Thanks for the replies all.

Just to be clear, the credit card was a corporate Amex that I believe ultimately the company was liable for - but it was in my name too. I paid it off in full every month after expensing everything through Concur.

I had an AmEx some years back, crappy service so we go rid of them. There was no advantage to the user than having a card kept just for company use.

AmEx issue the card to the individual after the appropriate ID and credit checks. The bills was sent to the individual at the work address but it was the individual responsible for payment. The employer acted as some form of guarantor and took the benefits.

Is there a possibility that you placed the order as approved and then left assuming that the company would sort the outstanding balance etc.?

I would suggest contacting your former employer and asking them to review the expenses to see the item in question went through.

[Stupeo]

The software was bought in 2017 and was paid for and expensed before I left later that year.

The software supplier are chasing for the 2018 renewal.

The corporate card and email associated with the original purchase were closed as soon as I left.

[craigjm]

Countdown said:

MitchT said:

Countdown said:

If it's a corporate credit card surely the monthly bills go to the Company and the Company should (normally) settle the bills automatically each month via Direct Debit?

Ha ha - in a world governed by common sense... But in the real world, or at least in one of the "big four" where my OH worked for some time, you had a corporate credit card which you had to settle out of your own pocket and then claim it back as expenses!

Fair enough. Although if that's the case there's no benefit to either your OH or the company in having a "corporate credit card". It's basically just a personal credit card that your OH uses only for business related expenses.

No it isn’t because it does not impact on your credit score and has no issues with credit limit. The idea is that you are supposed to spend on the card and then claim the expenses before the bill arrives. Some companies will then ask you to settle yourself as above and others will settle directly for any expenses claimed.

[Countdown]

craigjm said:

No it isn’t because it does not impact on your credit score and has no issues with credit limit. The idea is that you are supposed to spend on the card and then claim the expenses before the bill arrives. Some companies will then ask you to settle yourself as above and others will settle directly for any expenses claimed.

Why use a Corporate Credit Card, claim on expenses, and then settle the bill yourself when you could just as easily use your own personal credit card, claim the expenses, and then settle the bill yourself.

The main reason we issue corporate credit cards is so that we pay ONE invoice rather than 300 expense claims (we can also put limits on the types of expenditure that people incur). It also means staff aren’t out of pocket if there’s a delay in recessing their expenses..

I’m just struggling to see the point of a “Corporate” credit card which the individual has to pay the bills for.