Under 19 lloyds tsb unplanned overdraft.

cos_2

It is legal to lend money to a person of any age. No irony intended.

Sparx

realaledrinker wrote: »

Are you American by chance. They don't do irony either.

It says 'Scotland' on his postbit info on left-side of his post.

JacksterD

Sometimes under 18s accounts do manage to end up in an unauthorised overdraft - I know because I managed this on my Bank of Scotland account a few years ago. I had purchased an Xbox in GAME with my card, then went to an ATM and withdrew all the remaining money, but it seems a transaction I'd made online a day before hadn't been taken yet and a few days later they took the money and put me into the negatives.

It's my understanding that the banks don't do this on purpose - none of them charge interest or fees on overdrafts for under 18s accounts. Whether or not the posters on MSE think people under 18 should be responsible or not, banks cannot legally enforce credit given to someone under 18.

I wouldn't worry about it

(Although, while it won't affect your credit reports, it is possible it could affect your internal rating with Lloyds TSB, so that's something to look out for)

rtho782

There is nothing preventing the banks lending when you are under 18, if they wanted they could give you a credit card and a loan.

The problem comes when they come to enforce it, your signature is not legally binding and they cannot enforce the debt via the courts, so it is basically free money for you.

norris88

redpete wrote: »

Would you have accepted the charges if they had been raised by LTSB for having to refuse payment on stuff that you spent without having the money?

If I hadn't known I had the overdraft, I wouldn't have spent the money . I was (and maybe still am) young & dumb afterall!

izools

norris88 wrote: »

If I hadn't known I had the overdraft, I wouldn't have spent the money . I was (and maybe still am) young & dumb afterall!

You didn't have the overdraft.

Note the subtle difference in terms - PLANNED, and UNPLANNED.

An UNPLANNED is a result of you spending more money than the bank allows you to - putting yourself over an agreed limit if you have one, or overdrawn if you don't.

Unplanned overdrafts are heavily frowned upon by the bank and will count against you if you try to obtain credit from LTSB in the near future.

The only thing to watch out for is that banks have little control on debit cards being authorised for small amounts.

If you have one pound in the bank, and spend a fiver in each supermarket around town, likelihood is all transactions would be authorised - not because the bank are trapping you - but because they are none the wiser - supermarkets and other large shops don't authorise small transactions on the spot - they run a "Floor Limit" and all transactions under this limit just "go through".

Something to watch out for in future