Overdraft to a 16 year old?

NorthernStudent

Hi everyone.

For years as a teenager, I had a bank account with the Alliance and Leicester. They gave me an overdraft of £250 when I was 16, which, unsurprisingly, I maxed out and defaulted on.

I totally accept that it was my fault, but my question is, should the A+L have allowed me to have an overdraft at 16? For your information, this was in 2007.

opinions4u

There is nothing (legally) to stop a bank offering an overdraft to somebody under the age of 18.

There is nothing (legally) the bank can do to recover the money from a minor if they don't pay it back.

As such, it isn't normal for an under 18 to get an overdraft. Somewhere close to unheard of.

Plxply

When I was under 18 and still had an online Visa Debit card although I never had an official overdraft I did sometimes go into an unofficial one with the bank (don't worry, it was because I kept my money separate as I was worried I would lose the card and it would be stolen) most of the time it was only by 20p where I had failed to properly calculate when I made multiple purchases (especially around Christmas) although once I was accidentally double billed leading to a £40 unofficial overdraft that I didn't notice for a week. All that happened was that I received a call from HSBC saying I needed to put money into the account or they would close it.

NorthernStudent

I have just got off the phone to Santander (after going into a branch and receiving appalling service - surprise surprise!) and have requested the statements for the account from the application of the overdraft until the account was closed.

I have also found a copy of the T's and C's for the account online which state that you needed to be 18 to have an overdraft.

Seeing as A+L broke their own T's and C's, do you think it would be worthwhile me trying to get the charges/interest back, plus some goodwill?

Also, my credit file obviously reflected the poor state the account was run in, but as the account was against their own T's and C's, do you think I'll be able to have it removed from my credit report?

Chadsman

NorthernStudent wrote: »

Seeing as A+L broke their own T's and C's, do you think it would be worthwhile me trying to get the charges/interest back, plus some goodwill?

Also, my credit file obviously reflected the poor state the account was run in, but as the account was against their own T's and C's, do you think I'll be able to have it removed from my credit report?

What is more important to you- a clean credit record or paying the charges?

I would say it is unlikely Santander would cancel the debt so it would probably be easier for you to open another (basic) account at a different bank. As for 'plus some for goodwill' even more unlikely.
I cant see them removing the black mark from your credit report so it is going to be a case of waiting six years to drop off your file.

mikesten

It's not entirely unheard of, although I've not heard about it lately.

In 1984 as a 16 year old I had a cheque book and a cheque guarantee card, and also a seperate Speedbank (ATM) card from what was then TSB. I was working and paid in my (cash) wages every Friday. One week I was late getting to the bank and couldn't pay my wages in, and as a result went overdrawn until I could get to the bank early the next week. Being a well-mannered chap I apologised to the cashier, who promptly told me something like "Don't worry, you have an overdraft facility on your account of £50."

Now whether this was normal or not I've no idea, but I never went overdrawn again anyway until I was much, much older!

callum9999

Chadsman wrote: »

What is more important to you- a clean credit record or paying the charges?

I would say it is unlikely Santander would cancel the debt so it would probably be easier for you to open another (basic) account at a different bank. As for 'plus some for goodwill' even more unlikely.
I cant see them removing the black mark from your credit report so it is going to be a case of waiting six years to drop off your file.

They have an amazing case to get the fees back. Santander - like most banks - are generally accommodating for your first request.

My advice would be to contact them and say you will pay off the amount your borrowed, but could they remove all the charges as a gesture of goodwill (no matter how much you think you are justified, always say "goodwill" because then they will see it as resolution to the case without having to admit liability) as you were a minor and so shouldn't really have had it in the first place (and there was no legal liability to pay anything back at all). Whether you have to or not, I personally see it as theft (though I know some people have no qualms with stealing from multinationals - up to you).

Depending on how quickly you want it resolved, try and negotiate with them to remove all the credit markers as well. While they are accurate, I'm not exactly sure if they are strictly legal considering you had no legal responsibility to actually pay it back at all (but then you did agree to T&Cs so it's still your fault really).

NorthernStudent

Probably should have mentioned that the debt was paid off a while ago! I've rediscovered this through going through my credit report.

jonesMUFCforever

You have paid it off - leave it at that.
Just in case they come up with your original application with a 'mistake' on the date of birth.