PayPal Debt from my Teenager!

trinity_

Hi everyone
I'm seeking some advice. My teenage son (15) approached me this week saying he had a big problem....which has now become our problem.
He had set up a PayPal account last year, so that he could buy Christmas presents from Shpock.
Unbeknown to me, he linked his PS4 Sony account to PayPal. He was in credit on his PayPal account and decided to treat himself to an 'add-on' on the game for £0.79. A few days later, he checked his PayPal account and saw that the £0.79 hadn't been taken from his account....so he thought he wouldn't be charged and had found a loophole. He then proceeded to buy continual add-ons racking up one massive bill.
The bank account that is linked to the PayPal account is a Junior one, so can never be overdrawn, so the payments requested by PayPal kept bouncing.
He naturally panicked and tried to resolve it with Paypal via the resolution centre, but the cases were closed.
It came to a head when it seems that PayPal have passed his details onto a debt collection agency as he owes over £700 :mad:
He said he set up a repayment plan with them, but pretending he was over 18. I'm unsure how this happened as he clearly isn't. He said he threw the letter away in fear that we would find it and doesn't know the name of the agency. i'm also concerned about additional charges.
I want to resolve this as soon as possible. I will be paying off the debt and then my son will need to be working extremely hard to pay me back!!
Is there any way this can be explained and resolved with PayPal / Sony? Or do I need to resolve myself with the fact that he has bought over £700 worth of add-ons?:(

Any advice would be much appreciated!

eskbanker

trinity_ wrote: »

He said he set up a repayment plan with them, but pretending he was over 18. I'm unsure how this happened as he clearly isn't.

My understanding is that the age limit for PayPal is 18, so I'd have thought that a debt incurred by someone below that would be unenforceable - do PayPal know how old he is or did he lie to them as well?

trinity_

He's given me his PayPal log in details and I've gone through his profile, but I can't see what information he gave. I think he must have lied as after a few Google searches, PayPal seem to be 18+ only.

glider3560

You may wish to speak to the Citizens Advice Bureau about the actual enforceability of the debt, since he is under 18.

EachPenny

glider3560 wrote: »

You may wish to speak to the Citizens Advice Bureau about the actual enforceability of the debt, since he is under 18.

I would also be asking them about the potential consequences of not paying the debt though.

If he has deliberately lied to them to obtain a service then it raises the question of what is to stop any teenager lying on an application to get an account, running up a bill, and then refusing to pay? In some respects it is no different to an under 18 walking into a high street store and attempting to walk out with hundreds of pounds worth of goods.

If it was me I think I would aim to clear the debt in full in order to avoid any more serious repercussions - but seek some advice on that first.

glider3560

EachPenny wrote: »

I would also be asking them about the potential consequences of not paying the debt though.

If he has deliberately lied to them to obtain a service then it raises the question of what is to stop any teenager lying on an application to get an account, running up a bill, and then refusing to pay? In some respects it is no different to an under 18 walking into a high street store and attempting to walk out with hundreds of pounds worth of goods.

If it was me I think I would aim to clear the debt in full in order to avoid any more serious repercussions - but seek some advice on that first.

Indeed. It could also lead to a charge of fraud by false representation if they police were to get involved.

eskbanker

EachPenny wrote: »

If he has deliberately lied to them to obtain a service then it raises the question of what is to stop any teenager lying on an application to get an account, running up a bill, and then refusing to pay? In some respects it is no different to an under 18 walking into a high street store and attempting to walk out with hundreds of pounds worth of goods.

PayPal's (or the high street store's) account opening policies and procedures should be what's stopping teenagers gaining credit facilities by lying - under-18s can't legally be given credit in the UK and if any company does provide credit to a minor then IMHO that company should accept the consequences of their slack verification controls.

I'm not normally one for recommending that people seek to evade debts but this does seem more like irresponsible lending than irresponsible borrowing....

EachPenny

eskbanker wrote: »

PayPal's (or the high street store's) account opening policies and procedures should be what's stopping teenagers gaining credit facilities by lying - under-18s can't legally be given credit in the UK and if any company does provide credit to a minor then IMHO that company should accept the consequences of their slack verification controls.

I'm not normally one for recommending that people seek to evade debts but this does seem more like irresponsible lending than irresponsible borrowing....

In principle I tend to agree, hence the suggestion that further advice is needed.

What we (and the OP) don't know is the nature of the 'lie' if that is what has happened. For example the details given to PayPal may have verified correctly - perhaps matching those of an 18+ member of the same household?

Even if Paypal have unlawfully granted credit, it doesn't erase the fact that they did so apparently on the basis of false information being provided to them.

Someone above the age of criminal responsibility (or their parents) needs to be aware of the possible need to accept the consequences of what they have done, and factor that into whether or not they pay for the goods/services they have purchased.

But there is no doubt that PayPal do need to look at their systems.... otherwise it could be open season on them.

Emily_Joy

trinity_ wrote: »

Is there any way this can be explained and resolved with PayPal / Sony? Or do I need to resolve myself with the fact that he has bought over £700 worth of add-ons?:(

I would start with
1. Logging into the son's PayPal account and sending a message to them via "I would like to make an official complain". They actually do reply within a week.
2. Calling the PayPal UK number and explaining the situation. Make sure you do recording of the phone call.

I am however wondering if he being a teenager has got somebody else grown-up to help to set up a PayPal account for him (brother/sister/uncle/granny)? Then this person would be responsible and his credit history would be affected.

System

It is good that he has eventually come to you to tell you he has a problem. To be honest that in itself is an excellent outcome. I remember the heartbreaking news story from a few years ago when a similarly aged lad with a similar debt on his XBox account ended his life because he couldn't face up to what he had done. Make sure he knows that you are pleased he talked to you about it. As a parent you have to do the right thing and exercise appropriate punishment to make sure he realises he did wrong, but by golly it sure beats other possible outcomes. Well done that lad!

bxboards

I'm not sure why people are talking about the person being given credit by Paypal.

It says the the bank account was bouncing direct debits. If a payment fails, then Paypal will deduct the payment after failure, although generally they pass the payment onto the vendor instantly.

Paypal do offer a Paypal credit facility, but nothing in the opening post believes me to believe this is what the kid was using.

I don't think age is an excuse to commit fraud - the so called 'loophole' he thought he found is fraud by any other name, as the company he purchased from will have had the money deducted by Paypal too once it's bounced.