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Old 3rd Nov 2008, 16:04   #1
iKettles
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Overdraft Under 18

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.

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Old 3rd Nov 2008, 16:13   #2
Moses
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I thought they weren't allowed to do that to you... you should just phone them... or visit the bank.

You have to be eighteen to get credit... so they should have just refused the payment? ;s.
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Old 3rd Nov 2008, 16:14   #3
[DOD]Asprilla
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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/....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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Last edited by [DOD]Asprilla; 3rd Nov 2008 at 16:18.
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Old 3rd Nov 2008, 16:14   #4
Egosh
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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..
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Old 3rd Nov 2008, 16:18   #5
mangobreeder
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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.
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Old 3rd Nov 2008, 16:20   #6
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Unauthorised overdraft I'm afraid. Unless you challenge it then you'll have to pay.

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Old 3rd Nov 2008, 16:21   #7
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If your under 18 contracts can't be enforced against you.

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Old 3rd Nov 2008, 16:24   #8
[DOD]Asprilla
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CAG forum also appears to state that under18s can't be put into an overdraft position by their bank: http://www.consumeractiongroup.co.uk...aft-under.html

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Old 3rd Nov 2008, 16:28   #9
Sarduk
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Quote:
Originally Posted by Ergos
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.
Last edited by Sarduk; 3rd Nov 2008 at 16:42.
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Old 3rd Nov 2008, 16:41   #10
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Don't listen to this guy - see the post above this.
He doesn't have an overdraft and is in the red. What would you call it then?

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Old 3rd Nov 2008, 16:41   #11
Sarduk
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Originally Posted by Maccy View Post
He doesn't have an overdraft and is in the red. What would you call it then?
I quoted the wrong person, very sorry. Amended
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Old 3rd Nov 2008, 17:18   #12
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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.

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Old 3rd Nov 2008, 18:17   #13
J1234
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I think if you're under 18 and you go overdrawn you wont get charged for it like you would normally.
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Old 3rd Nov 2008, 18:49   #14
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There going to ring the police and your bedroom door will be knocked down, followed by them cuffing you and smashing your computer. Gutttted

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Old 3rd Nov 2008, 18:54   #15
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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.
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Old 3rd Nov 2008, 19:01   #16
[DOD]Asprilla
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Quote:
Originally Posted by Pez View Post
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.

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Old 3rd Nov 2008, 19:02   #17
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Quote:
Originally Posted by Pez View Post

I'm afraid ignorance is not a defense, a simple check online would reveal your balance.
It is because the bank can't enforce anything as he's under 18. And they illegally allowed his account to go overdrawn.

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Old 3rd Nov 2008, 19:11   #18
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*Sigh*

It's not illegal at all, if it was, it wouldn't happen.
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Old 3rd Nov 2008, 19:16   #19
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This happened to me a few months ago and they just took the charges off, you don't have to pay it. Mine was a Solo card too.
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Old 3rd Nov 2008, 19:16   #20
Energize
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Quote:
Originally Posted by Pez View Post

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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Last edited by Energize; 3rd Nov 2008 at 19:32.
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Old 3rd Nov 2008, 19:26   #21
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Quote:
Originally Posted by Pez View Post
*Sigh*

It's not illegal at all, if it was, it wouldn't happen.
It is illegal. A person under 18 can't legally be given a credit facility, which includes an overdraft.

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Old 3rd Nov 2008, 20:23   #22
Cupra
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Quote:
Originally Posted by vonhelmet View Post
It is illegal. A person under 18 can't legally be given a credit facility, which includes an overdraft.
this is what i always thought to be true

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Old 3rd Nov 2008, 20:31   #23
iKettles
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Quote:
Originally Posted by Pez View Post
I'm afraid ignorance is not a defense, a simple check online would reveal your balance.
Online banking is only available to people over the age of 16.
Will give the bank a ring tomorrow to see if they'll be a good samaritan and take the charge off.

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Old 3rd Nov 2008, 20:36   #24
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Seems people are still confusing the terms illegal and unlawful. They're two very different things. AFAIK (and IANAL) you can be GIVEN credit under 18, it just can't be enforced - hence most companies don't/won't.

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Old 3rd Nov 2008, 20:39   #25
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How did you use PayPal when you're only 14?
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Old 3rd Nov 2008, 20:42   #26
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Quote:
Originally Posted by Rainmaker
Seems people are still confusing the terms illegal and unlawful. They're two very different things. AFAIK (and IANAL) you can be GIVEN credit under 18, it just can't be enforced - hence most companies don't/won't.
Correct.

As a child you are not legally responsible for your debts, but that doesn't mean you cannot get into debt in the first place. It just means that cannot normally be taken to court for debt.

Usually any bank accounts that offer some form of overdraft for children under the age of 18 require a parent or guardian to act as a guarantor in order for the bank to be able to reclaim any debts from that person.
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Old 3rd Nov 2008, 20:43   #27
[DOD]Asprilla
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Quote:
Originally Posted by Rainmaker View Post
Seems people are still confusing the terms illegal and unlawful. They're two very different things. AFAIK (and IANAL) you can be GIVEN credit under 18, it just can't be enforced - hence most companies don't/won't.
Good point, well made.

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Old 3rd Nov 2008, 21:06   #28
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If you don't pay it back your overdraft within 1month you normally get the police knocking at your door!
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Old 3rd Nov 2008, 21:09   #29
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If you don't pay it back your overdraft within 1month you normally get the police knocking at your door!

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Old 3rd Nov 2008, 21:12   #30
Energize
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Originally Posted by Azagoth View Post
How did you use PayPal when you're only 14?
Lied about his age?

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