Legal Question in Civil Litigation in California

Apparently long time ago I had business as llc with california bank and trust branch

We as a business never were able to take off and remained dormant. One day i realised that we had $45000 debt on us. After investigating i realised that debbie (one of our partner) on company used credit card for personal expense. VP calbank (friend of debbie) authorised debbie to use credit cards on my behalf too (we had three 15,000cards). apparently cablt shouldnt have authorised her to use credit card more than 15,000$. I then called debbie and she told me that she (with VP) had taken care of it. To prevent this to happen again , i came to bank and closed all credit cards, accounts etc.

I confirmed from VP on email (still have one), on phone (also with bank managers at fremont branch) that all credit cards are closed and paid off with 0$ balance on every card, checking and saving account. CALBT confirmed. I was relaxed that everything is settled with no future debt hanging.

BUT today morning i got a call from credit card company that credit card still carries that debt worth 35,000$ ???? They are threatining me (collection agencies) .

I am very very surprised that after repeated calls and me personally asking that its 0$ balance, i was confirmed and now the matter comes back to haunt me.

Now debbie claims she doenst have money.. (i with one more partner were gurantor on card, which was suppose to have 0$ balance, before i closed).

summary - partner used card for personal expense. then later on, on my request paid it off (as per bank VP, who confirmed me on email). now after 1 year collection agencies are calling me.

what can i do


Asked on 9/30/10, 10:04 am

2 Answers from Attorneys
Terry A. Nelson Nelson & Lawless

Tell your story to your attorney who will be defending you in the litigation. You'll try to counter sue the 'guilty' as appropriate. If the case is in SoCal courts, feel free to contact me for that legal help.

Read more
Answered on 10/05/10, 12:42 pm

The first thing i would do is call the police. "Debbie" embezzled company funds if she used company debt for personal reasons. The bank VP seems to have been in on it too. File a complaint with the bank as well on that basis. If that doesn't get the desired result, give me a call, and I'll be happy to meet with you for a no-cost initial consultation about other options.

Read more
Answered on 10/06/10, 6:27 pm


Related Questions & Answers

More General Civil Litigation questions and answers in California