What is my potential liability for a credit that I has been taken out in my name by my employer?

UPDATED: Sep 6, 2014

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What is my potential liability for a credit that I has been taken out in my name by my employer?

The CEO of the LLC that I work for got me a charge card of some type (it has my name on card and name of the business). I am not a manager but just an employee. I gave them my social security number. Now they want me to use it to buy inventory, which can run into large sums of money. I called the credit card issuer and asked, “If the company goes bankrupt, am I responsible to pay any charges made with my card?” They said, “Yes, the debt goes to the LLC, then to the primary cardholder, then to the purchaser (name on card.) Am I protected by the LLC, and not liable for any charges I make with the card? I have not activated the card yet. Should I refuse to activate the card since the issuer says only I can activate, and activating is a digital signature of my acceptance of liability?

Asked on September 6, 2014 under Employment Labor Law, Georgia


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Yes, if your name is on the card, you could be held liable for any/all amounts due on it. You're not the first person they'd look to for payment--they'll try first to get it from the company, for example--but you are at risk. Before you decline to activate the card, however, consider that your employer would have the right to terminate  you for not activating and, as required, using the card (unless, that is, your employment is protected by any employment contract; otherwise, you are an "employee at will").

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