Credit Cards are the leading cause of Locals getting into financial and legal difficulties. A Local significantly increases its financial and legal exposure by issuing credit cards to officers in the name of the Local.

Our experience confirms that the possibility for problems increases in proportion to the number of officers and or executive board members given Local credit cards or access to them. A local union credit card can present an irresistible temptation for some, especially if they are experiencing financial or marital difficulties, or have children with drug or alcohol problems, or cannot qualify themselves for a personal credit card.

The Local can avoid many of these problems by establishing a policy whereby officers secure cards in their own name and the Local pays for the card’s basic annual fee (if any). The officer then submits the credit card charges associated with authorized union activity and the Local reimburses the officer. Any additional expenses charged to the card, plus the payment of the credit card bill, remain the responsibility of the officer, not the Local’s obligation.

CWA uses this exact procedure for the union’s full-time staff. This arrangement works satisfactorily and avoids the Union becoming liable and responsible in situations where expenses may be charged that do not qualify for reimbursement or in cases where staff members use the card for personal purchases.