What are the options a company has for pursuing employee theft if the employee has resigned without paying their corporate credit card?

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What are the options a company has for pursuing employee theft if the employee has resigned without paying their corporate credit card?

An employee was issued a corporate credit card and ran up $5,800 on it. The card was to be used only for company business, but the majority of the charges are not company related. They attempted to make several payments to the credit card company but each one was returned for insufficient funds. The employee has just resigned, effectively stealing the $5,800 as we are now left to pay the bill. What are our options to go about recovering our funds?

Asked on June 18, 2012 under Employment Labor Law, Arkansas

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

The former employer's options with respect to a credit card that was for business purposes alone by the former employee used for personal business are as follows:

1. write a demand letter to the former employee regarding repayment of the $5,800 on a monthly basis evidenced by a signed promissory note;

2. if ignored, file a small claims action against the former employee for the $5,800 plus accrued interest.


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