An employee was given a business credit card and understood they could be personally liable for purchases on the card.

When they left their employment they contacted the bank and the bank agreed to stop the personal guarantee since they were no longer employed.

The employer failed to pay the card debt and despite what the bank had agree it continued to chase the former employee for the balance plus costs and interest.

An adverse credit rating was also posted to the employee’s credit history and a debt collection company engaged.

The bank agreed that it would write off all the debt, remove the adverse debt record and pay compensation of $11,500 for the stress and inconvenience from its errors.

If you are having banking issues it pays to take advice from a professional experienced in the area.


Leading law firms committed to helping clients cost-effectively will have a range of fixed-price Initial Consultations to suit most people’s needs in quickly learning what their options are.  At Rainey Collins we have an experienced team who can answer your questions and put you on the right track.

Alan Knowsley