by Rostos  03/12/2017  250 Page Views
0 Comments  Self-managed super funds, superannuation, wealth management
I was a director at a company along with 2 other directors. Those 2 other directors (Director A and director B) were the major shareholders of the company.

I reported to the other 2 directors (Director A and director B)

I was instructed by director B that American Express (AMEX) was going to call me to set up credit card so i could pay various expenses by the company on that card. Naturally the company will then pay the credit card.

When AMEX called me and set up the card, they asked me numerous questions on the companies financial position, ie revenues, cashflows, etc etc.

The card was then set up.

During my tenure, i was asked by director A to go and purchase various items on the AMEX. I would do so, then when the credit card statement came through, the company from its bank account would then pay AMEX.

This was happening for approximately 1 year.

During the final month of my tenure, director A asked me to go and make various purchases like every other time. I had then resigned from my position.

Both directors then asked me to hand back the credit card which i did.

A few weeks later, AMEX called me and asked for the final payment for the balance O/S. All purchases that were made were during my tenure and all business related and instructed to me by director A. There were no transactions that should not have been there. They were all consistent with every other purchase that i had made.

I then called director B and asked him to make the final payment to AMEX.

Director B then made this payment. I received confirmation from AMEX that payment ha been made. I also called a few weeks later to AMEX who confirmed there is $0 O/S on the account.

Some 5 months later, i received a phone call from a debt recovery agency demanding from me payment for AMEX to the amount that equaled the last payment that was made to AMEX.

I then said it had already been paid. They said the payment had rejected and was never paid.
The woman on the phone seemed to guess as i explained that it was indeed CLEARED funds. If it had not been cleared funds, then a rejection would have come back some approx 72 hours later and AMEX would have called me demanding payment a week later which never happened.

I can confirm that it was cleared funds. A snapshot of the companies bank account will also prove this.

I then called AMEX who had a different story and said the bank made a request (where the funds came from) to reverse it as a dispute was made, ie unauthorised transaction.

I have escalated this to FOS and i have a conciliation in a weeks time.

The bank account under the company name was a joint account that requires dual signatures (electronically) except where there is a direct entry which was the case in this particular transaction.

Director B (who made the payment) was STILL a director and still authorised to use the bank account.

Director A it seems had raised a dispute, however it was director A who had asked me to make those transactions in the first place (there is proof for this). Again, there was no transaction that should not have been on there.

AMEX are chasing me for this payment.

I believed that the company was responsible for the card as i described when i set up the card, the rep from AMEX was asking me several questions about the companies financial position. If the card was solely my responsibility, why would the rep ask me those questions?

Also, at the time, my salary was very low ($40k), yet the card had a limit of several hundreds of thousands of dollars. If the card was under my name, why would AMEX give me a card that it purely my responsibility with such a very large limit based on a very small salary?

Also, all the correspondence i was receiving during the time i had the card such as statements had the companies ABN/name on it as well. They were also advertising directly to me the benefits of paying the companies GST using the card. If the card is just under name and my responsibility, why would they do this?

Can someone please advise?