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Can a collection agency for a credit card company ruin the credit of past employees of my LLC Business?

Asked almost 3 years ago - Columbia, SC

I owe a credit card company a little over $30,000 that I have made a payment on in the last two weeks and I set up payment arrangements starting next month. A collection company called me today regarding this debt and also contacted past employees who had access to the credit card as an authorized user only. the collection agency said they will persue past authorize users on the card to pay the debt and has contacted atleast one person and pinged their credit score. can they do that? shouldn't the LLC business be the only responsible party?

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Attorney answers (1)

Benjamin Beau Berger

Reputation Level 7

Answered almost 3 years ago. Business Attorney in Irvine, CA.

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This should be resolved by referring to the agreement that was entered into between you (or the LLC) and the company that issued the credit card. If your former employees never agreed to be bound to any contract - and if they only made purchases for you or for the LLC, there should be no way for anyone to find them liable.

Specifically, they cannot report a delinquent payment to a credit bureau with respect to anyone OTHER than a person who was legally obligated to make the payment in question.

Are you sure the former employee was not a co-signer or did not otherwise personally guarantee the payments?

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