Hi all
We got ourselves in a bit of a pickle earlier this year, and were forced to use my company credit card (AMEX) for groceries for a few months. We were having serious money troubles, and very quickly couldnt afford to pay the balance off.
I wrote to amex offering to pay $100 a month but they replied saying it had been passed to a debt collection company. Shortly after I had a very long and aggressive chat with said agency which ended with him saying they'd see me in court.
This was back in june, and since then I've not heard anything more on the matter.

Coincidentally I decided to get my equifax report last week, and this debt wasnt shown on there. I received a letter yesterday, dated 20th november, advising me the debt had been assigned to them and I had 5 days to pay the balance in full. The problem is, we dont have the money. If I had it I would pay without hesitation. I was actually hoping they would accept $100 a month and I would pay the rest when I get my bonus next year, which should just about clear it.

Ive not heard from amex to say theyve assigned the debt to this new company. Thankfully our money situation is starting to improve, but being fairly new to canada Im not sure what our rights are. I can still afford to pay the $100 a month anything more would start to put us in trouble again.

My employers havent said anything on the matter and Im responsible for all debts on the card.

Is anyone able to offer any advice or assistance? It would be very much appreciated. Thank you.

Speak to a credit counselor. Very difficult to advise without knowing full story.
Bad debt can effect future credit, especially with credit card debt. Any communication and offer to pay would be best made in writing, then you have a paper trail.

This link may help
http://www.nomoredebts.org/

thats a shitty situation to be in , and when you get desperate you do things you wouldn't normally.

Firstly the debt collection company is in the business of recovering debt for their client - so if you continue to speak to them and send a list of incomings and outgoings they will see that you are offering truly what you can afford.

I would say even if it goes to court no-one in their right minds will make you pay above what you can, so thats not something to panic about in itself.

Regarding the credit report, if its a company credit card then it will not show under your sole name but I would think under the company one. Which could lead to very uncomfortable situations regarding misuse of the card.

My advice would be to speak to your boss about it to explain - because sure as shit the company know about it already, and will not be too happy about having their credit rating damaged - whether its your responsibility or not to pay it.

Best of luck

They are actually in the business of making money, usually 20% of the debt if they collect. They often only go after debts that have a likelihood of recovery.

This is why you want to keep a paper trail. A written offer of payment plan would probably avoid court. If it goes to court a reasonable offer of payment that was refused would probably be frowned upon by the court.

Even corporate cards have personal liability. Depends who applied for the card, in what name and who signed the agreement. It can take several months for a bad debt to show up. Until there is no likelihood of recovery it is merely missed payments.

With two missed payments the AMEX interest rate I believe is something like 26%. A credit counselor may be able to help you sort this out.

I would also fess up to your employer PDQ. Under the Criminal Code, breach of trust is an aggravating factor and will lead to a more substantial penalty.

Thanks to everyone for the replies.
My employer probably knows. I received a call from head office a few months ago saying amex had called them about it. I then advised the office manager a short while ago. Thanks you again.

Think ill give the nomoredebts people a ring, thanks.

Normally when a debt collecting company is involved, it means the debt has been sold. They probably got this for cents in the dollar, and if this is the case then you can make them an offer that is lower than what you owe. Get advice.

That's not the case. Many companies use collection agencies and pay a fee for service. A debt can be sold, but this is not the usual course of action most companies take and they are the debts least likley to be collected, hence the pennies on the dollar.

We don't bother with collection agencies anymore as they have not power and can merely be a nuisance. Small claims court is far more successful, usually the threat of it works well, the summons catches most of the others, few ever end up in court.

Yes i have heard this too and indeed when a debt collection agency chased me for monies owed by the previous business owner i said i would arrange for him to deal with it and i know he only paid $350 for an original debt of $550.

I must admit that when i tried recovering some monies owed to my company the debt collection agency i used were useless. They really didn't try very hard and when i chased them they said they were only allowed to call the guys work once and they had used that up and he never answered his home phone or cell. They said they could try the "we'll take you to court" blurb but it wouldn't be worth it for the debt owed and the client probably knew that. She then said "but you can right it off anyways" Their charge btw was 33% of the outstanding amount.

I didn't say that never happened, but when it's credit card debt and an agency is involved then typically the debt has been sold.

I believe MJR do the AmEx collections as a fee based service. AmEx and the other cards have a completley different setup, as in Visa & Mastercard are merely payment systems funded by their respective banks, whereas AmEx provide the finance as well as the payment system.

Debt selling is a last resort collection method and is rarely done with consumer debt as the amounts are so small, with a minuscule likelihood of recovery. Commercial debt, often $200k and up into millions is sold on, often at pennies on the dollar.

Ok, it's worth finding out though. The OP might only have to pay a percentage of the outstanding debt if they are lucky; I'd negotiate in the OP's position.

With Amex I doubt it, a debt counselor may be able to help them restructure the debt with a repayment plan and significantly reduced interest rate. Also if they have access to lower cost financing, such as a line of credit with the bank, this can be a way to pay the expensive credit card from the LOC.

Anyone nf a debt situation they cannot handle should seek advice from a counselor though.

Yeah, this happened to me (through no fault of my own, the company I owed never even sent me a bill let alone a reminder); was for some poxy amount too (100 GBP I think). I told the agency I'd never had a bill, and they said if I paid 50 GBP they'd forget about it and it wouldn't affect my credit rating. I paid and it didn't.