An acquaintance of mine got divorced and went on a $15,000 retail therapy bender using the company card. His employer was remarkably understanding about the situation. He paid it all off over the next six months as life returned to normal.
But the whole spending spree took only a month. This guy is just embezzling and trying to find a good word for it.
This person needs to go to some kind of credit counseling or seek out another money management program. His problems sound chronic. Part of me kind of hopes that his current level of anxiety is enough to make him swear off of ever playing with money/credit in this way again, but from what I know of the real world, he's not likely to reform completely without serious outside help.
But maybe I'm making too much of the previous bankruptcy and the dependence on PayPal withdrawals. Perhaps he just went out and bought a bunch of coffee for a morning "fun" meeting?
Whoa. And this just reinforces why my company issues no-limit personal credit cards (the company pays the annual fee only) that the employee must pay off each month. The employee then submits any business expenses for reimbursement. Any issues like this are between the credit card company and the individual. No liability for my company at all.
I agree with the PP who said this guy's issue sounds chronic. He needs a serious kick in the pants and some training on how to properly manage his money.
Wow. It's really hard to get someone fired at my company. They give a lot of second chances, opportunities to improve performance, etc. However, we all know 2 guaranteed ways to get fired immediately: misuse company resources (watch porn at work) or misuse company credit card.
Whoa. And this just reinforces why my company issues no-limit personal credit cards (the company pays the annual fee only) that the employee must pay off each month. The employee then submits any business expenses for reimbursement. Any issues like this are between the credit card company and the individual. No liability for my company at all.
I agree with the PP who said this guy's issue sounds chronic. He needs a serious kick in the pants and some training on how to properly manage his money.
So the card is on your credit report? I'm confused about how this works...
Exactly. It shows up on your own credit report and you are responsible for paying it off each month. It's a personal card (AmEx) and the company pays the annual fee. It has no limit, but it must be paid of every month. Late payments are addressed only between the employee and AmEx (employer has no liability).
It's extra convenient because the charges land automatically in our expense system, so they are easy to submit for reimbursement, but you must have the appropriate backup/business reason to be reimbursed. If you have a personal charge on the card, you just delete it from the expense system.
Post by Velvetshady on Jun 4, 2015 15:07:27 GMT -5
I once used mt work AmEx to pay a bill at the vet instead of my personal AmEx (I was in a rush--I was driving my cat from there to an e-vet during a medical emergency). I got a call from AmEx within 24 hours questioning the charge and that one more non-work charge would lead them to cancelling my ability to have a corporate card. And I had already paid off the expense when they called me.
A $20,000 revolving balance? Guy should be fired. Mentioning that his GF was unemployed as part of the excuse, fire him and sue his ass.
BUT I will say that I've seen companies "look into" company credit yard use a little more often and a little more closely when they have a reason to want to get rid of someone. So I'll guess he's otherwise pretty good at his job.
OMG! I would flee. There is no recovering your reputation from something like that.
Random Question: would let he be able to roll the entire balance to a low interest card, thus removing the debt from the company's problem. "At least," then it would only be his personal finances and not involving his employer?
But wait, his company handed a dude who had a personal bankruptcy in his past a company credit card? Bad judgement on their part.
Yeah. I'm pretty against companies running credit checks on employees, but damn. This guy should never have the ability to run up a corporate card again. Or a personal card, for that matter.
So the card is on your credit report? I'm confused about how this works...
Exactly. It shows up on your own credit report and you are responsible for paying it off each month. It's a personal card (AmEx) and the company pays the annual fee. It has no limit, but it must be paid of every month. Late payments are addressed only between the employee and AmEx (employer has no liability).
It's extra convenient because the charges land automatically in our expense system, so they are easy to submit for reimbursement, but you must have the appropriate backup/business reason to be reimbursed. If you have a personal charge on the card, you just delete it from the expense system.
This is how my firm handles corp cards, too. It's nice when something goes awry with travel or other expenses because our corporate Amex rep can get involved if needed, but beyond that there is no corporate involvement.
MH can get fired for using his corporate card for a corporate function that serves a competitors product even if he doesn't buy said product. I can't imagine this.
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Uhhh what? I am confused because he says he misunderstood and used the card for personal expenses even after his manager said it's not allowed. Also, if the card isn't being paid off monthly, then how hasn't someone noticed this yet?
This is not good.
I got the impression he thought his boss was telling him in a wink wink nudge nudge sort of way that he wasn't supposed to use the card when the boss tied it to him needing a car very quickly. So he thought he could get the card and use it for the car and then it would be okay if he just paid it back.
Post by MixedBerryJam on Jun 4, 2015 17:03:47 GMT -5
Am I the only one who honestly doesn't understand what's happening at all? He has a company card. He charges personal stuff on his company card. Then he, what? Gets a cash advance on the card through Paypal to pay off the current balance? And the fees alone on the Paypal transaction(s) are $600/month? If he's racked up $20k in fees at PP, how is PP even still authorizing the cash advances? I really don't understand what's going on here, but I've never gotten a cash advance and I've only used paypal maybe twice.
Uhhh what? I am confused because he says he misunderstood and used the card for personal expenses even after his manager said it's not allowed. Also, if the card isn't being paid off monthly, then how hasn't someone noticed this yet?
This is not good.
I got the impression he thought his boss was telling him in a wink wink nudge nudge sort of way that he wasn't supposed to use the card when the boss tied it to him needing a car very quickly. So he thought he could get the card and use it for the car and then it would be okay if he just paid it back.
I got the impression he thought his boss was telling him in a wink wink nudge nudge sort of way that he wasn't supposed to use the card when the boss tied it to him needing a car very quickly. So he thought he could get the card and use it for the car and then it would be okay if he just paid it back.
That's how I read it, too.
Yes, I figured it was something like that but that doesn't make it right. Then they're both wrong and at fault.
And it wasn't used for just the car, he used it for expenses that he couldn't cover when his girlfriend lost her job.
Post by imojoebunny on Jun 4, 2015 19:28:22 GMT -5
This is the guy who makes it were the rest of us cannot have nice things. He is a human sponge, absorbing what ever he can take from others...
" I have managed to rack up a rolling balance of $20,000 on this card and I can’t ever pay it all off in one go. I had a bankruptcy a few years ago and cannot qualify for a loan to cover"
Post by underwaterrhymes on Jun 4, 2015 19:30:41 GMT -5
All of the ethical issues and stupidity on his part aside, doesn't his company reconcile accounts every month?
We have company cards at my job, but I review the statements every month and require receipts and explanations for every charge. I cannot fathom how something like this goes unnoticed.
Post by irene adler on Jun 4, 2015 20:45:17 GMT -5
This reminds me of a story I heard on the a Moth podcast where someone had used $12k (?) to play poker and lost it. He told about how awful it was to go to his boss and how his company worked with him to make it right. The story was so gripping.
Post by vanillacourage on Jun 4, 2015 22:00:38 GMT -5
The night I met DH's friends for the first time his buddy mixed up corporate card with personal and put $$$ on the company card buying rounds of Jagerbombs. When he realized what happened he broke out in the poop sweats in the middle of the bar.
As far as how can a semi hit a car and the guy's insurance has to pay? If it is a no-fault state, they can. My friend was hit by a semi, lost both her truck and camper and because it was in FL, the semi's insurance company didn't have to pay anything in regards to her stuff.
Am I the only one who honestly doesn't understand what's happening at all? He has a company card. He charges personal stuff on his company card. Then he, what? Gets a cash advance on the card through Paypal to pay off the current balance? And the fees alone on the Paypal transaction(s) are $600/month? If he's racked up $20k in fees at PP, how is PP even still authorizing the cash advances? I really don't understand what's going on here, but I've never gotten a cash advance and I've only used paypal maybe twice.
The CC is the one charging him the cash advance fee.
The more I think about this, the more I think he should get caught, because this is embezzlement. At first, I was thinking, "Eh, he should try to get a personal loan and pay off the card once and for all, and then just make installment payments on the loan, and at least it will be separate from the corporate card, so hopefully he won't get caught." But seriously, this was a series of such poor decisions that it would be almost criminal for him to work for another company without them knowing about this. I can't imagine accidentally racking up $20k on a corporate card for personal expenses. I hate to say that it should ruin his career, but... I wouldn't hire this guy. No way.
Post by hurricanedrunk on Jun 5, 2015 12:05:20 GMT -5
I'm taking deep breathes after reading that! Yikes what a mess.
There is no way this would happen at my company, receipts get turned for all company cards and "allocated/charged/costed" to a job or fund on a monthly base. If charges are personal there is a payroll deduction procedure to get it paid back. I am at a loss at how it could go on for so long and get to this level.