Legal Question in Credit and Debt Law in Missouri
Previous Small Business Credit Card
I used to Manage a small business, I quit that business in Aug. 2004, the company had asked me to get a small business credit card in the companies name for supplies etc., I did that, there were also two other names on this account. When i quit the company asked me to call and remove my name from the account, they wanted to close the account all together, and the credit card company would not let anyone do that but me. I called the cc company in Aug. requested my name be taken off the account. To make a story short, i have cooresponded with this cc company on several occasions, at least 4-6 times in writing and phone calls, requesting this account be closed. I received a threatening phone call from cc company and a letter that they are going to turn ''me'' personally into the credit bureaus, because my name is on the account. They accepted bogus charges on this account for Disability ins. (not authorized) and other charges for the other two credit cards issued not in my name, and of course late fees. I don't feel that i am responsible for this account. But i don't want my credit tarnished. The Company won't pay the bill so they are coming after me.
1 Answer from Attorneys
Re: Previous Small Business Credit Card
Most cc applications since 1999 contain a clause where in the signators agree to be bound and to include in their personal guaranty, all credit extended to the co-applicant under that application. In your correspondence to the cc company, and any collection agencies, you need to include clear language wherein you "Rescind and Annul" any promises to be bound to any guaranty for any credit extended under any application or credit agreement that is signed after the date of your letter, and that the recipient of the letter agrees to hold you harmless for any such charges. This will not affect any credit extended up to the point of the letter. It does seem to get the cc companies to stop applying new credit to you. Make sure yoru social security number is on the letter, as well as any company names or credit account numbers that you view as covered by the Notice.
If you sent clear written Notice that you were cancelling the credit account. IT should be sufficien to cover yrou future debts ON THAT ACCOUNT. But, if yoru former business partners get more credit from the same credit application that was teh basis for the accoutns you cancelled, you may still be liable until you rescind and annul your guranty and promise to be held severably liable.
Under the facts that you described, you are personally and individually liable for the charges run up by anyone authorized to charge up until you cancelled the account. Hopefuly your Notice to cancel was clear,a dn you weren't asking the credit card company to cancelt eh account. In the altter case, it is viewed as giving the credit card company the option to cancel or not.
Under the facts you escribed, teh debt is not consu,er debt, so you are not protected under the Fair Debt Collection Practices Act.
Good luck, if the cc company continues to hassle you, hire an attorney, so they will stop calling you.
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