update: I racked up $20,000 in personal charges on my company credit card by Alison Green on July 20, 2015
Remember the letter-writer last month who had racked up $20,000 in personal charges on his company credit card and was in a horrible cycle of using the card to take Paypal cash advances to pay it off each month, thus moving it to the next month, along with interest charges? Here’s his update.
I went to my manager and just laid it on the table, cut out any mention of factors as to how I got here, just laid it out: I have $20k personal expenses on the company card and I can’t immediately pay it back.
He had to go to his boss, and she had a teleconference with me, along with HR. Along with the meeting invite, they attached the company credit card policy, along with the ethics policy.
The first question they asked was, “Do you understand how a company card is supposed to be used?” I said that I have read the documents they gave me, and from reading them and talking to my manager it is very clear that the way I have been using the card up until now is inappropriate.
The next thing they asked was, “Just to be clear, you have $20k of personal expenses and you can’t pay the entire amount in one lump sum. Is that what you are saying?” Then they asked, “How will you pay it back?” I said that I am happy if I pay only my rent and food, and they can basically take the rest of my pay until it is covered.
My manager’s boss said she is not happy with that, because it will put me under stress which might lead me to some other act of desperation or make my job performance suffer. She further stated that because it is such a large amount, they do not have the budget to pay it in order for me to repay the company slowly. She went on to explain that the American Express corporate card is not a true “credit card,” but a debit card and therefore the company must clear the bill each month or face fines, penalties, and a breach of the agreement that our company has with American Express.
She asked if I have fully explored loans, friends, family, and all other options. I said that I had and I could provide rejected loan applications to show the effort I have been going through to get this debt into my name.
She said that they need to go back to the finance team to figure out the next steps, and she stated she would schedule a meeting for Thursday (of this past week). I haven’t heard back from her regarding this, and I assume she is still waiting to hear back from the finance team and attempting to come up with a fix for this situation. She says that the issue of the misuse of the company card is a secondary issue and the first is how to pay the bill.
My manager rang me just after this meeting finished. He was full of support and offered to write up the cost of losing me. He said he would like to show his boss that it would cost 4 times the $20k for him to outsource coverage and hire a new person, not to mention the interruption the client would experience. He said I need to put together a budget showing my income and expenses and he suggested I do $100 per week personal spending in the budget, so they will see the game plan I come up with as sustainable. He informed me of a few company policies, where employees can “cash out” a week of holiday pay each year with approval and he said he is happy to aprove that. Also, he will find out if I can cash out retirement funds to help with this, and he is offering as much overtime as possible. He suggested If I seek an out-of-hours job to supplement this and that it be restricted to weekends only because otherwise I’ll get burned out and might not stick to the plan.
He suggested I compose an email full of action words, like “I can commit to x dollars per paycheck” rahter than “I’ll try to repay ASAP.” He even kindly offered to proofread my email and look it over before sending on to HR and upper management. He mentioned that the likelihood of legal proceedings is low due to it being easier for them to get money from me if I am still working, and at least in New Zealand, it’s bad for the company reputation to take the hard road with their employees. While he says he cannot predict the outcome, he will support every effort to retain me. He suggested as a start to just offer to relinquish the credit card and offer to expense legitimate things through my bank account going forward.
I put together a quick budget, reflecting that with no more spending on the card and no more of the monthly PayPal fees, I can get this paid off within 12 months, through payroll reductions alone. And I have stated that I’m still exploring any possiblites of loans, as well as seeking overtime and the possiblity of some weekend work to reduce the timeframe for total payback.
I am SHOCKED they didn’t fire me on the spot, relieved that it seems legal action is low on the list of likely outcomes, and totally amazed at their level of understanding and willingness to help me. It’s like this huge, scary, heavy, unknown thing that has been causing depression and taking my mind very dark dark places over the last 4 years is now lifted and I see a light … at the very least, it’s not going to grow any bigger. PayPal fees are out of the equation, so any contribution I make is going 100% towards the outstanding amount. You know, my friend, I think I am standing two inches taller.
Just waiting for this second meeting is a bit of “limbo,” but it’s far far better than this terror I have put myself in over this. It’s just good that it is in the light now. I’ll let you know what happens after this meeting (which I havent even got an invite for just yet).
I find it difficult to believe that a person who is in a position to obtain a job that include a $20k corporate card is not sophisticated enough to understand how they work. He knew exactly what he was doing so I can't muster up very many feels for him.
"She went on to explain that the American Express corporate card is not a true “credit card,” but a debit card and therefore the company must clear the bill each month or face fines, penalties, and a breach of the agreement that our company has with American Express."
Well, if that's the case, how in the hell did this whole situation happen? How did it go on for four years if penalties and whatnot were being assessed because obv. the card wasn't being paid in full every month.
I was being paid in full, just through cash advances against the card itself.
Did the first post mention New Zealand? I feel like that is an important part I missed the first time around. Like are we all applying out US filter to it?
Did the first post mention New Zealand? I feel like that is an important part I missed the first time around. Like are we all applying out US filter to it?
I feel like it wasn't. I would've remembered that detail.
I'm in Australia (no doubt similar rules & regs as NZ) and my SO has an Amex through work. I asked him about it and he said that the card is integrated with the company systems, so "they know what's charged on there almost before I do". Granted this is a Big 4, so if this guy works for Mom & Pop Inc. they might let things slide. Now that he's switching jobs he has to give the Amex back.
I firmly believe in this case that the company is stupider than the guy. And that legal action should be taken against him.
Post by phunluvin82 on Jul 22, 2015 23:29:01 GMT -5
I can see why he wasn't fired. The time and cost to recruit and train a replacement. The interruption of service to this client he keeps referring to. The time and cost to try to recover the money from him through legal avenues after being fired, rather than recover it from his paycheck willingly and with his full cooperation. I wouldn't be surprised if all of that added up to much more than $20k.
What he did was wrong, and criminal. He definitely deserves to be fired...but I think most companies care more about their own bottom line than about doling out a punishment, however justified. Still, I imagine this will stymie his career there. If they still keep him on after the money is paid back, they certainly won't ever be promoting him, giving him any extra responsibilities or another company card, or placing much confidence in him in general.