There is 3 of us in our hosting company partners split equally, One of the partners uses our company Credit Card and buys personal items and even takes $300 Cash advancements out of it. What can we do to stop this besides beat his head in. Do you people have any fool proof way of not getting raped?

Thanks,
-Scooch:mad: :mad: :mad:

Take away the card?

On a similar note, if you can't trust your business partner, I think you have some restructuring to do...

That's embezzlement, threaten him with it. Just being an owner of a company does not give you the right to take money at will, it has to be paid via regular payroll, dividends, or personal loans.

Most importantly, contact your accountant and ask her how you should handle things like this.

Maybe youre right.:angry:

Maybe? Dizix is right, take action immediately ... what your partner is doing is illegal.

split equally means split the profit equally or winding down bizness and splitting the leftover money among yourselves?

Anyway unless you have to find really good partners when it comes to business.
I have friends who are always asking me to invest in his service when I just get this feeling he is going to eat all my money away and declare the company is not making any money.Im just trying to be nice everytime he ask me to go with him into a 'venture', just smile and say I have greater commitments. And the most important thing I dont trust him. I do not foresee myself going into partnership with him ever.

Yeah u gotta do something ASAP before the situation gets even more out of hand

I guess it depends on what you mean by 'split'..

If you are each drawing a salary then your partner has no right to help himself. If you do not have a salary per se, and all of you take money as it is needed, then a little communication as to what is acceptable and what isn't is needed.

If he knows that the money is not his to use freely, then cancel his access immediately, deduct the money from his next check and get another partner.

just my 2 cents

I think were going to take away his Credit Card and ATM Card. Sad this has to happen. Crazy Sh*t.

em·bez·zle Pronunciation Key (m-bzl)
tr.v. em·bez·zled, em·bez·zling, em·bez·zles
To take (money, for example) for one's own use in violation of a trust.



Thanks
-Scooch

what else does the dude have access to

bank accounts?
other?- ie client lists

if he gets pissed after you confront the cc issue will he telnet in and smoke a server or two?

look for the potential collateral damage FIRST
close those avenues FIRST

then kill the card

frankly you should think about the relationship too, if its 300 now what will it be in a year or two when profits and money grabbing can be greater???

expedience is important and so is confidence in the other partner

I would hide the client data, change the server admin passwords, get a new credit card, and tell your "partner" to take a hike. Cut your losses while you can.

Just have the credit and atm cards "hot carded" by your bank. The next time he tries to use them the machine or merchant will be instructed to keep them. You can use this as an excuse to go over purchases and withdrawals made with him present and curtail his priveleges or what-not.

Yea, we are gonna have a meeting later today and show him the Credit Card summary, $300 cash advancement has a 49% interest rate on it. He has charged $1000 worth of personals on it. I really wanna just bash his teeth in.

-Scooch:angry: :angry: :angry: :angry: :angry: :angry: :angry:

*gets out fire extinguisher* Good luck, and approach it with dignity. Your partner appears to have a serious problem.

This is what I would do...

Take away the card, go to an accountant and see what they tell you, check the card statements on what is being spent and how much, fire him, take him to court, get the money back.

hope you havent had the meeting yet

lay low

change those server passwords before that meeting......

te cuidado'

el_g

Keep us updated Scoochy.

Oh yeah, don't beat him up or when you go to court, he might have pictures of the bruises=) And then you'll be on fire! :angry:

Also try to make him :bawling: and give your money back....and everyone reading this is thinking :eek: lol


Oh, try to take a hidden tape recorder and record the convo so he admits his mistake..Just another good evidince=)

49% intrest rate ???????? Daym what kind of credit record does your company got ??

Originally posted by Scoochy
I really wanna just bash his teeth in.That would really do it.

beat his head in

That sounds suitable.

It may have been best to consult your legal console before making this post -- it may not be something you want getting out about your firm any ways.

Regardless, take him to court if your lawyer advises. That, or you can always send the debt to a collection agency (assuming they will take the case.) Regardless, you shoot a good shot of getting the funds back.

Oh, and hot card his card.

We confronted him about it, He denied it at first, then admitted it, he said he bought some computer parts and stuff, for his home use, (wich is not allowed) and made 2 cash advancements for about $600, He acted as if he was going to pay it back all along, and as if we are over reacting. I am pretty pissed, and we canceled his credit card, and he is paying the money back. He gave us $500 so far today. I dunno what else to do.

49% interest rate is on cash advancements only, not on purchases. Cash advancement is when you put your CC in the ATM machine and take cash money out of it, and get it in your hand from the ATM.

Thanks For your help guys

-scooch

Good luck, with him.

Originally posted by Scoochy
49% interest rate is on cash advancements only, not on purchases. Cash advancement is when you put your CC in the ATM machine and take cash money out of it, and get it in your hand from the ATM.

Holy cow... and I complain about 15%p.a. interest with 55 days interest free :)

Greg Moore

You are running a business and not a charity. If you work for a fortune 500 company and you have their corporate credit card can you go and buy X-mas presents for your kids on it? The answer is NO because of something called an expense report that will not get approved by finance group. Establish rules and procedures for your company have lawyer look them over and then sign them, that way you have a legally binding document that you have to abide. I know it sounds stupid to do it for a 3 person business but it can be a life saver down the road.

Originally posted by Scoochy
We confronted him about it, He denied it at first, then admitted it, he said he bought some computer parts and stuff, for his home use, (wich is not allowed) and made 2 cash advancements for about $600, He acted as if he was going to pay it back all along, and as if we are over reacting. I am pretty pissed, and we canceled his credit card, and he is paying the money back. He gave us $500 so far today. I dunno what else to do.

49% interest rate is on cash advancements only, not on purchases. Cash advancement is when you put your CC in the ATM machine and take cash money out of it, and get it in your hand from the ATM.

Thanks For your help guys

-scooch


Maybe I'm a hard ass on this sort of thing, but here's what I would do: Call the police and have him arrested. NO JOKE!

The money that he took is money out of your pocket. Money that you could have used to pay your bills, feed your kids, or even expand your business.

Despite what he is saying, he knew that he shouldn't have taken the money, and yet he did anyway. It is not your fault... it is his! Maybe this will teach him a lesson and he will think twice before he does something so stupid in the future. What he did is a crime, and he should be punished like any other criminal.

Hey, he took - what - a total of $1500 and returned $500. If he refuses to make good, that is the time to go after him - or if it ever happens again. 49% is a steep rate and he better pay it off pronto. Did you guys get that card from LoanSharks Express or something?

Its 49% on cash advancements. When you put the Credit Card into a ATM machine and have them give you $300 CASH, out of the credit card, YOU PAY HIGH %

Scoochy,

You may want to reread your CC terms and agreements. Generally cash advances are paid of last and carry additional fees. Sometimes you have to bring the balance to $0.00 to kill the 49% interest.

Inside of the terms it will show how your payments applied.

Typically, they are applied like this:

CC Fees (Past Due/OL fees/Cash Advance fees)
Interest
purchase balance
cash advance balance

You should also read the bill very carefully, there are more than likely additional fees for the cash advance. Most places charge a 5-15% transaction fee (e.g. 300.00 Cash Advance is actually 345.00 at 49%).

I only know this because I used to work for a credit card company and learned all of the dishonest, yet legal, stuff they do to get your money.

Originally posted by xerocity.com
You may want to reread your CC terms and agreements. Generally cash advances are paid of last and carry additional fees. Sometimes you have to bring the balance to $0.00 to kill the 49% interest.


That's a very good point to bring up. If Scoochy's company carries a balance on that card, that 49% interest rate can stay on there for years and cost them a fortune.

Cash advances on credit cards are generally a very bad deal.


-Bob

I dont know. Thanks guys for your help, I dont know if i should kick him out or, one more chance. what would u do?


-scoochy

Talk to a lawyer!!!

Is he a good friend of yours? Or a hired person?

It really depends on how much you like the guy. I would say give him the boot, but change all the passwords, and hide the user records. And remember, fire them on a Friday. There is a less risk of him killing you.

Fire him away.

He is my cousin :(

And remember, fire them on a Friday. There is a less risk of him killing you.
Did you watch Office Space last night too? :laugh:

Sounds like it's a big mess Scoochy. I know he may be your cousin, but business is business, family is family. Family members are supposed to be friends, but it doesn't sound like he's been a great friend or business partner. I'd give him the can.

If you work for a fortune 500 company and you have their corporate credit card can you go and buy X-mas presents for your kids on it? The answer is NO because of something called an expense report that will not get approved by finance group

Try selling that story to the former Enron workers.

Originally posted by xerocity.com
Scoochy,
Typically, they are applied like this:

CC Fees (Past Due/OL fees/Cash Advance fees)
Interest
purchase balance
cash advance balance


Whilst this is generally true, a card I once had stated that I could make a point of stating on my check the payment was for the cash advance and not the purchases/interest, and it would be applied to that. Not sure if they still do that though, or even if I didn't imagine it in the first place. Perhaps I'm dreaming, it's been one of those days.

Originally posted by Scoochy
He is my cousin :(

If you fire him it might get more messy family-wise, and he may be less inclined to pay you the $ back. Then you'll have to go legal on him and there'll be more family havoc.

But if you do decide to fire him, make sure everyone in the family knows what he did before hand.. they'll believe you if you get your story out first, and at least you have a third partner who can vouch for you.

Personally, I'd keep him at least until he paid all the money back PLUS the interest, but be very careful over exactly what he has access to in the meantime. Trouble is, limiting his access to the workings of the business will maybe also limit his usefulness.

What is his role in the company, and what is yours? How old are you? Do you have family politics to consider or are you too old for that kind of stuff.

if you are all being paid on a regular basis, I'd be inclined to take $x out of his check so it's paid off in it's entirety over a few months. Sometimes when people learn a lesson like this they can be very faithful if you give them another chance. Other times they'll just stab you in the back until you're dead.

Do you have family politics to consider or are you too old for that kind of stuff.

LOL, when I see someone use "u" for "you" and such, I tend to assume they aren't old enough to drive.

Seems our friend is 25, though, according to his profile. :D

Originally posted by akashik


Holy cow... and I complain about 15%p.a. interest with 55 days interest free :)

Greg Moore

I just changed over to St George Bank Mastercard. 10.5%p.a. with 55 interest free and $1 surcharge for cash advances. Not that I need to use it as a loan at the mo - it's nice to have a reasonable credit facility on hand.

Might as well get one for your dog too - they seem to be on a big marketing push at the moment and are giving them away to anyone. Bloody banks!

Originally posted by Lurleene


LOL, when I see someone use "u" for "you" and such, I tend to assume they aren't old enough to drive.

Seems our friend is 25, though, according to his profile. :D

oddly enough my mum is 54 years old and always sends me emails saying things like "we r going 2 the park".

but at least she dopesn't say "we r goin to da park dat will b nice cuz iss grate dere".

I get a LOT of emails from teenagers who speak like that, and to be honest, I usually bin them.

Yes, I am 25 years old, I just use "u" and things like that, because its faster. Well see what happens. I think im gonna give him a chance. I mean it is only $1000, Not that thats not alot, but well see what happens. Thanks Guys

:rolleyes:

This is a situation I see all too frequently. Business partners that are friends or family can turn out very badly. Always get a very good partnership agreement/contract before starting anything. It makes life much easier in the end. I started a business with a friend several years ago and we each saw an attorney that helped us draw up a partnership agreement that was fair and covered all the bases.

It's only good business to have it up front. Include things like % ownership, payment methods (which I'm sure wouldn't include cash advances :D ), any buyout options, responsibilities, etc.

Originally posted by Lurleene

LOL, when I see someone use "u" for "you" and such, I tend to assume they aren't old enough to drive.


Bad assumption. I use "u", "r", really crappy spelling, incomplete sentences, and even bad grammar when IMing because I want to communicate fast and efficient. Has nothing to do with my ability to write good english. If I can get a point across with 2 words I do it. No need to write an essay.

For example, when someone says something that confuses me I just reply with "?". They get the point and reply. When I want to say "good night" I just type "gnite".

Originally posted by Scoochy
I mean it is only $1000, Not that thats not alot, but well see what happens. Thanks Guys


No! Don't convince yourself that it's ONLY $1000. I went through a bad partnership before and that's what I used to do too, to make myself feel better. People usually like to avoid confrontations when possible because we don't like to deal with such stressful situation, but when you do that you can end up in a world of hurt. Believe me. End the partnership. Do it tactfully. Don't burn your bridges, but end it. And make him pay back every penny, including all finance charges.

Don't cop out like I did. Fight this to the end and see it through. It's not JUST $1000.