Credit agreements for a 16 year old?

Lovelyjoolz

Hi guys

Not sure if this is the right place to post this, Mods - please move it if necessary.

My question is, is it legal for a 16 year old to take out a credit agreement for a mobile phone contract? I thought you had to be 18 to enter into a credit agreement, but I'm clearly wrong...

ladybez

I was under the impression that someone of 16, being a minor, could not enter into any sort of credit agreement. SOME organisations may give credit as long as the applicant has a guarantor (sp) or indemnifier. There have been cases on here where minors have obtained credit by giving incorrect information on application forms.

tallyhoh

from adviceguide.org

Mobile phones

"If you are under 18, you cannot enter into a monthly contract for a mobile phone. However, you can buy a pay as you go mobile phone as this does not require a contract"

DVardysShadow

If the phone is a necessity for the 16 year old, then they can take out a valid contract which can be enforced. Normally, mobiles are not classed as necessities, but don't rule out the possibility

Otherwise, they can take out a contract, but it cannot be enforced against them. So it is tough luck on the mobile supplier if the knew the customer was underage. But if the customer used deception to get a contract, then we are looking at potential fraud if the contract is not honoured.

Lovelyjoolz

This is what is worrying me. It's a family member who has got himself into massive debt with various companies: unauthorised overdraft, payday loans you name it.

His most pressing debt is one relating to this phone contract he took out at 16. I can't get out of him whether he defrauded them and lied about his age, or if they were stupid enough to not run proper checks. Either way, debt collectors (Lowells) are after him and I'm trying to help him sort it all out.

Problem is, he's out of work, on JSA (until it runs out in a month) and has no way of repaying these debts. I can see me having to bail him out of this eventually, but if there's anything I can do to persuade Lowells to back off and give him some breathing space, I will.

I guess I need a copy of his application form for the contract to rule out fraud - do I contact the phone company for this, or should Lowells be able to provide it?

chanz4

depends, does he want a cifas application fraud on file?

Lovelyjoolz

chanz4 wrote: »

depends, does he want a cifas application fraud on file?

Of course not. I'm trying to ascertain whether he fraudulently obtained a credit account or if he, as he asserts "didn't know I couldn't have one and they didn't ask my age".

As far as I can see, he needs the application form to prove this one way or another. So how do I get a copy?

DVardysShadow

Lovelyjoolz wrote: »

Of course not. I'm trying to ascertain whether he fraudulently obtained a credit account or if he, as he asserts "didn't know I couldn't have one and they didn't ask my age".

As far as I can see, he needs the application form to prove this one way or another. So how do I get a copy?

You don't get one. He gets it himself. Explain the situation and the possibility of getting a CIFAS fraud marker and suggest that he takes the fight to Lowells by asking for a copy of the agreement if he is happy that he did not commit fraud.

I strongly recommend that you yourself do not involve yourself directly with his creditors but let him take the decisions and the consequences. After all he has acted as though he was old enough, so he should see it through.

While the results of this may be something of a road crash, if it is going to be a road crash, it is better in the longer term to let it happen and let him see the consequences now rather than postpone it for when you are fed up with bailing him out.

Lovelyjoolz

DVardysShadow wrote: »

You don't get one. He gets it himself. Explain the situation and the possibility of getting a CIFAS fraud marker and suggest that he takes the fight to Lowells by asking for a copy of the agreement if he is happy that he did not commit fraud.

I strongly recommend that you yourself do not involve yourself directly with his creditors but let him take the decisions and the consequences. After all he has acted as though he was old enough, so he should see it through.

While the results of this may be something of a road crash, if it is going to be a road crash, it is better in the longer term to let it happen and let him see the consequences now rather than postpone it for when you are fed up with bailing him out.

*sigh* You're right DVS. I know you are. He's big enough and stupid enough to get himself into this mess, and he's big enough to dig himself out. I suppose I should chain up my inner control freak, point him in the right direction and let him get on with it.

Thanks for the kick up the bum DVS

chanz4

If its not much better to arrange to pay, cifas markers can stop bank accounts and even insurance