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Overdraft Under 18

Discussion in 'General Discussion' started by iKettles, Nov 3, 2008.

  1. iKettles

    Wise Guy

    Joined: Sep 26, 2007

    Posts: 1,213

    Location: Amsterdam

    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.
     
  2. Moses

    Capodecina

    Joined: Jun 24, 2007

    Posts: 23,427

    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.
     
  3. [DOD]Asprilla

    Capodecina

    Joined: Nov 10, 2003

    Posts: 14,036

    Location: Surrey, by the river

    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.
     
    Last edited: Nov 3, 2008
  4. Egosh

    Hitman

    Joined: Nov 23, 2005

    Posts: 611

    Location: London

    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..
     
  5. mangobreeder

    Mobster

    Joined: Mar 3, 2008

    Posts: 2,561

    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.
     
  6. Maccy

    Don

    Joined: Nov 23, 2004

    Posts: 30,782

    Location: Herts

    Unauthorised overdraft I'm afraid. Unless you challenge it then you'll have to pay.
     
  7. Energize

    Caporegime

    Joined: Mar 12, 2004

    Posts: 26,339

    If your under 18 contracts can't be enforced against you.
     
  8. [DOD]Asprilla

    Capodecina

    Joined: Nov 10, 2003

    Posts: 14,036

    Location: Surrey, by the river

  9. Sarduk

    PermaBanned

    Joined: Mar 25, 2007

    Posts: 1,785

    Don't listen to this guy - see the post above this.
     
    Last edited: Nov 3, 2008
  10. Maccy

    Don

    Joined: Nov 23, 2004

    Posts: 30,782

    Location: Herts

    He doesn't have an overdraft and is in the red. What would you call it then?
     
  11. Sarduk

    PermaBanned

    Joined: Mar 25, 2007

    Posts: 1,785

    I quoted the wrong person, very sorry. Amended
     
  12. Spamalot

    Soldato

    Joined: Oct 25, 2004

    Posts: 5,229

    Location: Cambridge

    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.
     
  13. J1234

    Capodecina

    Joined: Oct 16, 2005

    Posts: 13,820

    I think if you're under 18 and you go overdrawn you wont get charged for it like you would normally.
     
  14. KaneStatton

    Wise Guy

    Joined: Jun 3, 2008

    Posts: 1,714

    Location: Cornwall

    There going to ring the police and your bedroom door will be knocked down, followed by them cuffing you and smashing your computer. Gutttted
     
  15. Pez

    Mobster

    Joined: Oct 20, 2002

    Posts: 4,762

    Location: Warwickshire

    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.
     
  16. [DOD]Asprilla

    Capodecina

    Joined: Nov 10, 2003

    Posts: 14,036

    Location: Surrey, by the river

    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.
     
  17. Energize

    Caporegime

    Joined: Mar 12, 2004

    Posts: 26,339

    It is because the bank can't enforce anything as he's under 18. And they illegally allowed his account to go overdrawn.
     
  18. Pez

    Mobster

    Joined: Oct 20, 2002

    Posts: 4,762

    Location: Warwickshire

    *Sigh*

    It's not illegal at all, if it was, it wouldn't happen.
     
  19. yhack

    Mobster

    Joined: Jan 6, 2005

    Posts: 3,632

    Location: Cambridge

    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.
     
  20. Energize

    Caporegime

    Joined: Mar 12, 2004

    Posts: 26,339

    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.
     
    Last edited: Nov 3, 2008


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