Xbox have taken £4000 pounds from our account

diamonds

HappytobehereinsunnyBT80 wrote: »

Bank account is an 11 to 18 year old account and it comes with visa debit as standard which is in his name and I was advised at time it did not permit overdraft and since.

Write a formal complaint. Banks cannot give credit to under a 18 year old on any card transaction, a overdraft is a credit facility.

HappytobehereinsunnyBT80

To be clear bank account is in my son's name only, account offers debit card as standard also in my son's name. Xbox account set up with his correct details, age etc and was linked only to his card funded by 5 per month standing order and 3 days after he got xbox 1 he spent £50 when he only had £10 in his account thus leaving his account £40 overdrawn.:mad:

djpailo

what bank was it out of curiosity?

grumbler

diamonds wrote: »

Write a formal complaint. Banks cannot give credit to under a 18 year old on any card transaction, a overdraft is a credit facility.

They can, but normally they won't.

Kim_13

I think it may be Nationwide Flex Basic - most 11-17 accounts as far as I know have a cash card only, which means such an account couldn't be linked to an X Box at all. If Nationwide, they do offer a cash card for the account and will change the card if you ask them.

Do XBox check for card authorisation before the purchase is accepted, or do they bill it later without doing so? If the latter, then it might have been classed as a transaction that the bank was unable to stop, as by this point the money is due to XBox. In this case the fault is more XBox's for having such a system, as it allows people to spend money that they don't have or money that they don't have the facility to borrow.

diamonds

grumbler wrote: »

They can, but normally they won't.

A person under the age of 18 has no capacity to enter into a credit agreement, hire agreement, credit card or loan.

That includes a overdraft, all account payments not covered by balance should be refused.

The account is for <18. The card did not work as per the account T&C no doubt, AND as the parent was advised by the banks representative.


Official complaint to bank that the card allowed payment against terms/staff.


Debt is not enforceable and bank should refund and collect from Microsoft chosen payment processing merchant the amount due AND the bank internal address why their systems allowed the debit on a under 18's non-credit account.


Edit: Forgot to post: The only exception is a suitable credit worthy adult signs secure liability for any debt for a 14-18 year old (excludes Scotland) which most companies dont offer.

GingerFurball_2

diamonds wrote: »

Write a formal complaint. Banks cannot give credit to under a 18 year old on any card transaction, a overdraft is a credit facility.

Not upheld, banks cannot prevent an account from going overdrawn due to debit card use, it is the customer's responsibility to manage their account.

The bank won't charge for the overdraft and haven't provided an overdraft facility so have done nothing illegal.

grumbler

diamonds wrote: »

Official complaint to bank that the card allowed payment against terms/staff.

Fine.

Debt is not enforceable

Yes

and bank should refund and collect from Microsoft chosen payment processing merchant the amount due

Of course - if you say so.
Bank made a mistake by lending to under-aged customer and cant enforce the debt. Why on earth some merchant has to be responsible for the bank's error?

eskbanker

grumbler wrote: »

diamonds wrote: »

Official complaint to bank that the card allowed payment against terms/staff.

Fine.

OP doesn't have the power to fine them!

diamonds

GingerFurball wrote: »

Not upheld, banks cannot prevent an account from going overdrawn due to debit card use, it is the customer's responsibility to manage their account.

The bank won't charge for the overdraft and haven't provided an overdraft facility so have done nothing illegal.

A under 18 year old with a 'online' card checking balances available is indeed the banks fault for a negative balance. Example: Visa Electron was merged into Visa 'Debit' as a online balance checking pre authorising transaction approval.

Offline debit cards are reserved for non basic, prepaid & age restricted accounts.