credit agreements for 16 year old?!?

impecunious

Apologies if i have put this in the wrong place but as she's a student and only 16......

A neighbour's daughter got a 'free trial' at a fitness centre (think: Dragon's Den!). Whilst she was there, it sounded suspiously like she was manipulated into signing up for a year's membership and didn't know it. i don't think she went back again, but now Dad has recieved threatening letters saying she owes a lot of money for unpaid membership fees!:eek:

Is this enforceable as she is only 16? I think not as it's on par with a credit agreement and you still have to be 18 to get credit, but want to check first with you guys.

TIA

pinkshoes

I was under the impression that anyone under 18 can't enter a credit agreement. Found this which might help:

http://www.consumereducation.org.uk/money/english/credit/05.htm which says:

Buying on credit when you're under 18: It's illegal for traders to send anything through the post to people under 18 inviting them to borrow money or obtain other credit facilities. Shops are unwilling to do business with under 18 year olds (what the law calls a minor) as if you don't keep up your repayments, the shop or lender may not be able to sue successfully to recover their money. The law says that if a minor fails to pay his debts, the person to whom he owes money will only succeed in suing if the goods bought with the money lent were real "necessaries" - i.e. things the minor really needs rather than just things they want. Traders prefer to deal with the over 18s where expensive items are concerned or ask someone to stand as guarantor to make sure they get paid.

pinkshoes

Oh, this is the CAB page which will probably be more useful:

http://www.adviceguide.org.uk/index/your_world/consumer_affairs/young_people_money_and_consumer_rights.htm#banking_credit_and_borrowing_money

Seems that a 16 year old would need a guarantor to enter a contract.