Under 18 and had unfair charges

dmarti32 · 12 March 2007 at 9:29PM

Help please:
My son, has clocked up £144 of charges from N*t W*st since January 31st 2006. I have followed the process and issued the letters. So far no response from the bank. Today I was due to start court procedings, but look to fail at the small claims court process because he is under 18 he cannot use the small claims court service.

Do you think I can take the bank to court on his behalf?
Should I contact the ombudsman?
Has anyone received money back for a minor or third party?
Can the banks really charge under 18s when technically they cant go overdrawn?
Has the bank broken any credit laws by granting my son unsecured credit?

Lots of questions - I hope some of you have the answers!

Thanks in advance - Dave.

alletishme · 12 March 2007 at 9:39PM

I think Natwest says the under 18's can't go otherdrawn but they allow them to do so, its not fair but I am sure they will just refer you to some t & c's that prove they can!

nel · 13 March 2007 at 9:45PM

how old is your son?
how about waiting until he is 18 and can then go through small claims

dmarti32 · 16 April 2007 at 8:46PM

Used the process and the bank fianlly paid up. You have to be persistant, firstly they offerred £56, then 84 and finally £144. Yipee!!!!!!!!!!!

paul_b_7 · 24 March 2008 at 4:11PM

Can you tell me what process you used?
I am 17 and hold a NatWest Card Plus account, that incurred two unpaid item fees, of £38 each, on the same day, last summer. I was 16 at the time.

Can somebody help me in reclaiming back my £76?

Are there any letter templates in regard to under 18 charges?
Thanks

Additional Note:
NatWest didn't actually pay/lend me money for the two transactions. The two transactions failed due to insufficent funds. But NatWest had the cheek to charge me two large fees for their transaction rejection service.
I still don't understand what I paid £76 for... I didn't go overdrawn, as the transaction failed.
NatWest provided no special service that required a special fee of this size.

My NatWest statement stated O/D next to both fees.
The definition of overdrawn: When more money is withdrawn from a bank account than it contains.

Yet.. PayPal (who tried debiting the money), stated that no funds were able to be debited, and that they would be retrying in several days.

NatWest obviously do not know what they're doing.. they lied, stating that they had charged me for going overdrawn/debiting more money from my account than it contained.. Yet, no funds which did not belong to me were actually debited.

natweststaffmember · 24 March 2008 at 7:17PM

Just for everyones information, a bank has to refund charges on an account where the person is under 18 years of age. I don;t think a Martin Lewis reclaim charges letter is required merely a letter stating that you are under 18 and you have heard you cannot be charged.

paul_b_7 · 24 March 2008 at 9:20PM

natweststaffmember, that is good to hear.
do you have any sources which I can reference, which state that?

This is NatWest's description of the fees I have encountered.

Unpaid Item Fee
An Unpaid Item Fee will be payable if:
you informally request an overdraft by issuing instructions for a withdrawal or other payment; and the payment cannot be met from the funds in your account or any unused arranged overdraft facility; and we decide in our discretion not to make the payment.
Making an informal request for an overdraft means you will have to pay a Paid Referral Fee, a Guaranteed Card Payment Fee or an Unpaid Item Fee. If an unarranged overdraft arises, you will also have to pay the Maintenance Charge and interest. For examples showing how our charges work, please see the section headed 'Unarranged Overdrafts and Unpaid Items' in our leaflet 'Our commitment to you'
When charged: At the time we decide not to make the payment.
Fee amount: £38 for each item (subject to a maximum of £114 per day.

Are you sure I have a strong case in stating that this fee cannot be applied to under 18 account holders?

I'd like to confirm facts, to make sure I get it right the first time.
Thanks

Tozer · 24 March 2008 at 10:15PM

Principle in law is that under 18's do not have capacity to enter a contract unless it is a contract of "necessity". On this basis, under 18's seem to have very good legal rights to make a recovery.

[Deleted User] · 24 March 2008 at 10:54PM

When you read the TandCs re charges, it states the names of the accounts where charges are applicable, the Natwest adapt which I understand is the 11-18 is not listed, therefore you don't get charged ?!?

Need someone else to double check though, but I thought 16 to 18 cannot be charged. sorry 16 to day before 18

paul_b_7 · 25 March 2008 at 5:29PM

hi chris, can you link me to these T&C's regarding charges?
thanks

natweststaffmember · 25 March 2008 at 8:14PM

its irrelevant what you want to quote, a simple I am not 18 you cannot charge me should do. I am afraid, the system is automated so does not see age. If it takes you into an overdraft then the Credit Consumer Act applies because you cannot give credit to someone under the age of 18. They will refund it. I am 100% certain. BUT be careful because you may find natwest may ask you to find alternative banking arrangements if you are constantly getting charges.

Under 18 and had unfair charges

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