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Does anyone have any ideas about where I could look for help about a
certain issue we are having. Our company has created a policy that
states that anyone who travles more than 3 times a year, must
mandatorily get a company credit card. However, this is not a credit
card in the companys name, that I would simply carry, I am required to
fill out a credit application and the card is in my name.
I fill out electronic expense reports, and my company direct deposits
money to my account for me to use to pay the creidt card.
I have alot of problems with this concept:
If my company doesnt get me the money in time, I am responsible for
the late fees and/or interest.
If I make a personal expense (on this personal card?) I can be
terminated.
They are forcing this on us, without other options, I was told it
would not even be acceptable for me to use another personal credit
card (for example, if I already had one).
Is it legally fair for my company to force me to get a credit card??
This would affect my personal credit, I dont see how this is possible.
PLEASE, any help, suggestions, or ideas would be most appreciated!
Thanks
Andy
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It seems "Andy" wrote in misc.legal.moderated in article
<vtsf00pmrqr8km352urlqd8qgspp9apcoa@4ax.com>:
Does anyone have any ideas about where I could look for help about a
certain issue we are having. Our company has created a policy that
states that anyone who travles more than 3 times a year, must
mandatorily get a company credit card. However, this is not a credit
card in the companys name, that I would simply carry, I am required to
fill out a credit application and the card is in my name.
I fill out electronic expense reports, and my company direct deposits
money to my account for me to use to pay the creidt card.
I have alot of problems with this concept:
If my company doesnt get me the money in time, I am responsible for
the late fees and/or interest.
If I make a personal expense (on this personal card?) I can be
terminated.
And even if nothing else goes wrong, having yet more available
credit on your credit report might cause some other application to
be denied.
Also, of course, if it's your credit card the the company cannot
have any say in how you use it.
This whole concept (if you're describing it accurately) is pretty
obviously unfair, but I don't know whether it's actually illegal.
Your starting point would probably be the state Department of Labor.
But something doesn't add up here. Are you _certain_ this is the
plan? Sometimes policies are explained in a confusing way and people
draw wrong conclusions. Is it certain that not only your name would
be on the card and you (not the company) would be responsible for
the bills? Lots of companies do require their an employee to carry a
corporate credit card with the employee's name, but the company pays
the bill and the employee accounts to the company for the expenses.
The bad news: even if it's illegal to require this, your company can
always find a legal way to screw you: for instance, sending you out
less than three times a year, then failing to promote you because
you weren't a team player or weren't growing in your job.
Can you appeal to anyone in Human Resources about the basic
unfairness of this approach? (One talking point: "Doesn't this
discriminate against people who may not have good enough credit to
get a card on their own?" If there's no way you can talk them out of
this requirement, and this is an important issue for you (as it
would be for me), I think you may want to start looking for a new
job.
--
If you e-mail me from a fake address, your fingers will drop off.
I am not a lawyer; this is not legal advice. When you read anything
legal on the net, always verify it on your own, in light of your
particular circumstances. You may also need to consult a lawyer.
Stan Brown, Oak Road Systems, Cortland County, New York, USA
http://OakRoadSystems.com
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In article <nljn00h1lmni7moknerhb2jflmaqqft9kl@4ax.com>,
Stan Brown <the_stan_brown@fastmail.fm> wrote:
This whole concept (if you're describing it accurately) is pretty
obviously unfair, but I don't know whether it's actually illegal.
Sounds like the rule at Cisco when I worked there. They are a
big company and I'm sure their lawyers would have investigated
the legality of this policy.
(I didn't get a card and refused to travel or incur expenses
for which I could be personally liable.)
--
John Carr (jfc@mit.edu)
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Stan Brown <the_stan_brown@fastmail.fm> wrote in
misc.legal.moderated:
It seems "Andy" wrote in misc.legal.moderated in article
<vtsf00pmrqr8km352urlqd8qgspp9apcoa@4ax.com>:
But something doesn't add up here. Are you _certain_ this is the
plan? (Risks of alienating employer by refusing)
I agree this looks very unusual. In my experience, companies have
required someone to have good credit before issuing a company credit
card. Otherwise, they must use their own credit/credit card to obtain
goods and services in the performance of their jobs and apply for
reimbursement. Requiring someone to get a credit card on their own
credit for exclusive corporate use is unreasonable, IMHO.
I can't say anything about the legality of it because I'm not a lawyer,
but I can suggest how you might approach human resources or the CFO.
First, don't just say, "This isn't fair" and leave it at that. Provide
some possible solutions to the problem. Set a meeting and tell them
that acquiring another credit card under your own name unreasonably
alters your credit standing. Whether you have good or bad credit,
creating another credit liability is not a good thing. Say you are
willing to use one of your existing credit cards if you can rely on
timely reimbursement from the company. Or would the company consider
loading a prepaid credit for your use for company related expenses.
These cards can be reloaded if you get the right one and they work just
like a credit card.
Nonetheless, the employment market is presently in favor of the
employer and if you can't abide by their policies, assuming it's legal,
they'll find someone who will. As far as interest, that is within your
power to avoid by paying the amount in good faith that your employer
will reimburse you. You'd have to ask a tax expert, but if you do
incur interest and membership fees for whatever card you use, you may
be able to write that off as an unreimbursed employee expense (Form
2106, don't ask how I know that.)
Good luck! Ask for clarification if you think you understood it wrong.
Ask to see the written policy. If they won't put their policy in
writing, that's a big red flag. Polish up your resume.
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Does anyone have any ideas about where I could look for help about a
certain issue we are having. Our company has created a policy that
states that anyone who travles more than 3 times a year, must
mandatorily get a company credit card. However, this is not a credit
card in the companys name, that I would simply carry, I am required to
fill out a credit application and the card is in my name.
I fill out electronic expense reports, and my company direct deposits
money to my account for me to use to pay the creidt card.
I have alot of problems with this concept:
If my company doesnt get me the money in time, I am responsible for
the late fees and/or interest.
If I make a personal expense (on this personal card?) I can be
terminated.
They are forcing this on us, without other options, I was told it
would not even be acceptable for me to use another personal credit
card (for example, if I already had one).
Is it legally fair for my company to force me to get a credit card??
This would affect my personal credit, I dont see how this is possible.
PLEASE, any help, suggestions, or ideas would be most appreciated!
Thanks
Andy
This is a neat way for the company, if it's small, to get more credit.
They're using your credit to float their expenses. Remember, if you
have a few thousand in expenses on your card and they go bankrupt,
you're liable for the money! You might start looking for another
company to work for.
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Does anyone have any ideas about where I could look for help about a
certain issue we are having. Our company has created a policy that
states that anyone who travles more than 3 times a year, must
mandatorily get a company credit card. However, this is not a credit
card in the companys name, that I would simply carry, I am required to
fill out a credit application and the card is in my name.
I fill out electronic expense reports, and my company direct deposits
money to my account for me to use to pay the creidt card.
My company does this also and has some huge deal arranged with Amex. So
far it's not a problem for me. One thing you should clarify with your HR
dept: in our case at least, this credit card does NOT appear on my personal
credit reports. I believe yours is the same, but you should check it. If
you fail to pay the balance, the card company reports it to your employer
and then it's up to your employer to lean on you to pay it.
I have alot of problems with this concept:
If my company doesnt get me the money in time, I am responsible for
the late fees and/or interest.
Yes, this is a possibility. If this happens, then you should definitely
beat up your employer about it. I was leery of this at first also, but so
far it hasn't been a problem. My employer is a very large corporation with
thousands of people like me using the credit cards and filing expense
reports. A smaller employer could theoretically be flakier about it.
If I make a personal expense (on this personal card?) I can be
terminated.
I suppose my policy is the same. However I have on rare occasion
charged something to my business card. I figure that since I'm paying it
off myself at the end of the month anyway, it's no big deal.
Oh also, I am under the impression that the credit card company doesn't
report the monthly balances to my employer, only defaulted balances. I
could be wrong there, though.
Is it legally fair for my company to force me to get a credit card??
This would affect my personal credit, I dont see how this is possible.
PLEASE, any help, suggestions, or ideas would be most appreciated!
Thanks
Andy
Sorry I can't address the legality of it. I can reassure you that it's
common in many companies and so far at least *I've* not had a problem with
it. FWIW....
--
Sharon, Lurking As Usual
To reply, replace spammersmustdie with jcwoman1963
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