Can a company be sued by a collection ageny if an old partner from the company had a personal credit card get charged off, but with the business name on the credit card?
If it was a personal card, why would the business name be on the card? Usually its the other way around...a card is a business card, but they require a personal guarantee by an office of the corporation. Usually they are pretty strict about stuff like that. It seems there would be several issues involved here though. L <---not a legal pro
Yes it was a business card, but she used her SS#, not a EIN #. The only thing relative to this business is that their company name is on it, otherwise it is all her personal information on it and signed by no one else but her.
Was she an officer of the corporation? If not, the corporation could argue that she was not authorized to incurr debt on behalf of the company. Usually a corporations by-laws will deal with how much debt a company is authorized to incurr and how, etc. I know for loans, etc., they usually have an amount they can incurr up to and if they need to borrow more, the directors have to pass a resolution or amend the previous resolution. Problem is...if this company comes back and says she wasn't authorize to incurr the debt on their behalf and yet she put their name on the card, they may come after her. Seems to be a lot involved here and I don't think anyone except an attorney is going to be able to answer your questions. This is definately a situation where I would find an attorney. I am not one and I am just basing my statements on my limited knowledge of the above. Lawyer up L
