In 2009, Americans charged $140 billion to their corporate credit cards. This money was used on everything from flights to hotel rooms, but this year, financial analysts warn consumers to watch their spending habits because they may find themselves stuck with the bill.
ABC News reports that 35 percent of corporate cards have individual or joint liability contracts that state that the employee is responsible for the debt. Large companies, such as Fortune 500 firms, are also more likely to have these agreements.
“The credit card company can come after your company, the one that issued the corporate credit card, or they can come after you personally and that’s where a lot of people get confused and hurt,” Avvo.com founder and CEO Mark Britton told ABC News.
Employees are encouraged to ask the credit card program manager at their companies to verify who is responsible for the debt. Consumers can also monitor their credit and statements to look for corporate charges. Debt can result in credit score damage that can take an extended period of time to recover from.