Legal Question in Credit and Debt Law in Massachusetts
American Express is dunning me for the outstanding balance on an account of a former employer (now liquidated), claiming I signed a personal guarantee. I did not, however.
I left the company over a year before these charges were incurred by the company; I was not an owner of the company; I have signed afidivits from the company's VP of Finance at the time and also the Liquidation Agent who handled the firm's bankruptcy, both attesting that none of the charges were mine, that I had left the company over year prior to that; that upon resignation I returned my card (there were several employees who had cards) and that the card was cancelled.
American Express has admitted they don't have a copy of any signed agreement/application from me.
Is an alleged "personal guarantee" claim by them enforceable given the above facts?
A related question: the signature page of AMEX applications contains no language about a personal guarentee. That language is contained in a multi-page, small print "member agreement" document which have been made illegal when the credit reform act is implemented in the next year or so. Given that, would such an approach legally bind a credit card holder?
1 Answer from Attorneys
The actual documents which you reference when closely scrutinized along with your factual statement will determine whether there has been violations of the Fair Debt Collection Practices Act or Massachusetts General Law Chapter 93A.
Initially, it sounds as if these collection efforts by AMEX may be in violation of the law.
Feeel free to contact this Office for a free phone consultation on this matter. Good Luck!
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