Business debts showing up on personal credit reports
An alarming story that is percolating slowly to the level of national coverage is the fact that more business owners are experiencing a phenomenon known as veil piercing: a term used in corporate law that describes disregard for corporate entities. In other words, small business owners who have setup a corporation to avoid personal liability are discovering that they can, in fact, be liable for certain debts.
To better manage risk, credit card companies are becoming more aggressive in pursuing debts and are pushing the limits of their contractual abilities. Some are even overstepping legal boundaries to intimidate customers. Such coercive actions have spawned a deluge of complaints and lawsuits.
Furthermore, small business owners are beginning to see business debts show up on their personal credit reports. According to CreditMattersBlog.com, Discover has openly admitted to reporting business debts for placement on personal credit reports.
In short, if you have a business loan, reread your terms. It could be that like others who were eager to reap the benefits of easy credit, you unknowingly entered into a contract that exposes you to personal liability.
For more information about this topic and options on how to address it, visit Credit.com.
Greetings! I’m Kevin D. Johnson, a business owner who has recently assumed the role of consumer advocate and internet activist. Atlanta, Georgia is my home.
Upon returning from my wonderful honeymoon in Jamaica in October 2008, I received what I thought was an ordinary American Express bill, but to my surprise it was a disappointing letter informing me that my credit line was reduced by about 65% for a highly suspicious and discriminatory reason. Considering my excellent credit score and pristine payment history, it just didn’t make sense. However, what does make sense are the unfair and insidious policies that I have uncovered when asking why. It is time to change them.
I created this web site to document and share my challenging journey to change what is wrong, unfair, and unjust in the credit card industry. The ultimate goal of this web site is to inform consumers of ways to stand up for themselves against treacherous business practices and to educate consumers about how to improve their credit. Finally, I hope to encourage a more open dialogue with credit card companies about their policies–good and bad.
I am proud to say that this blog's unyielding demand for change led to an important 
WAY TO GO KEV. SPREAD THE WORD SO THAT PEOPLE WILL KNOW THE TRUTH ABOUT THESE BANKS. I HOPE THEY BRING YOU BACK ON THE SHOW.
Posted by: Frank | March 03, 2009 at 10:25 AM
Hi, Kevin. I just heard you on the radio in Atlanta. Keep up the great work, man.
As for business debts showing up on personal credit reports, I hope this doesn't happen to me or else I'll be in trouble.
Posted by: Aaron T. | March 03, 2009 at 08:05 AM