Overdraft Under 18

Associate
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I know there's members here in all lines of work and will have much more knowledge than me about the subject in hand.
I'm 14 (young I know) and have gotten myself overdraft on a Natwest Adapt Card (Solo). The situation is that I made a PayPal payment around 2 weeks ago to extend my Rapidshare account not knowing that I didn't have enough money in my account for the payment. The payment was for £5.50 so not much at all. I got a letter from Natwest last week stating that they had not been able to pay for the item's listed because there were insufficient funds available in my account and that as a result they would be charging me an unpaid item fee. The standing order from my parents account for £30 is scheduled to go in today, I checked my balance and it was listed at £36DR which I presume means overdrawn. Is the bank allowed to put me into overdraft if I'm under 18? I wasn't aware I had insufficient funds in my account and it was totally by accident, will the bank honour this and take off the overdraft or will I still be obliged to pay it? Long post I know, just trying to see if someone has experienced similar and what I should do about it. My parents are aware of the situation before anyone asks.
Thanks.
 
Soldato
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Well, they can't take legal action against you to collect it, but then again, you've got to be over 18 to use Paypal in the UK so.....

Very similar thread on Money Saving Expert: http://forums.moneysavingexpert.com/showthread.html?t=938299

You need to speak to your bank really since they can't put you into an overdraft state. If they do it counts as credit and you can't have a credit agreement until you are 18.
 
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Associate
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yeh its banks charges..happened to me a couple times...company takes money from your account without there being any money in it..the bank reverses the transaction then charges you for it. nothing you can do unfortunatly..
 
Soldato
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give customerservices a call.

explain being 14, you are going to struggle to pay it. They owe you a duty of care, and should agree to waive the fee if you credit your account in a timley manner.

when are you going to credit the amount back into your account.
 
Permabanned
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Ergos said:
yeh its banks charges..happened to me a couple times...company takes money from your account without there being any money in it..the bank reverses the transaction then charges you for it. nothing you can do unfortunatly..
Don't listen to this guy - see the post above this.
 
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Soldato
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Go and chat to the people at the bank (with mum and dad would prob be best), they will let you off if your nice and chat about it and promise to be a good boy.

Same sort of thing happened to me at a simular age and they let me off.
 

Pez

Pez

Soldato
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He hasn't been charged for going overdrawn, he's been charged an 'unpaid' fee. He has not been given credit, as that is pre-arranged, he has simply gone O/D (without an overdraft agreement)

He may well get it back speaking to the bank, but they are not currently legally obliged to do so.

I'm afraid ignorance is not a defense, a simple check online would reveal your balance.
 
Soldato
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He hasn't been charged for going overdrawn, he's been charged an 'unpaid' fee. He has not been given credit, as that is pre-arranged, he has simply gone O/D (without an overdraft agreement)

If his account is in a negative balance, for any reason, then they have given him credit, regardless of whether it's agreed or not. However, it is a grey area and it's not really covered sufficiently in what I've quickly read in the banking code.
 
Caporegime
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It's not illegal at all, if it was, it wouldn't happen.

Yeah no one does illegal things, oh wait...

Solo cards require authorisation from the bank before a payment is made in order to ensure that the funds are avalible, if Natwest failed to do this and put the account into overdraft they illegally breached their contact.

In addition to that, it most likely breaches the unfair contract terms act 1977.
 
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