PayPal cancelled account

Ibits4321

My son opened a PayPal account before he was 18. He is now 19 and has used PayPal credit to buy a phone for £1400 to pay it back at 0% over 3 years (yes, I know ..not something I would have done).

He received an email today  telling him they have done a review of his account and as he was under 18 when he opened it they have suspended his account and he is not allowed to use it. They told him to open a new PayPal account.

He was 18 when he entered into the credit agreement.

My question is if his account is no longer allowed, what will happen to his PayPal credit agreement?

Will they allow him to transfer it to the new account?

Why are they making it a rigmarole...if they'll accept a new account, why can't they just let him use his old one? 

If his PayPal account is 'illegal' is his credit agreement with them legal?

MattMattMattUK

Ibits4321 said:

My son opened a PayPal account before he was 18. He is now 19 and has used PayPal credit to buy a phone for £1400 to pay it back at 0% over 3 years (yes, I know ..not something I would have done).

He received an email today  telling him they have done a review of his account and as he was under 18 when he opened it they have suspended his account and he is not allowed to use it. They told him to open a new PayPal account.

They have told him to open a new account because the terms and conditions he agreed to were agreed to when he was under age, he also committed fraud by lying about his age. Whether they will actually let him open a new account is a different matter.

Ibits4321 said:

He was 18 when he entered into the credit agreement.

My question is if his account is no longer allowed, what will happen to his PayPal credit agreement?

He will be required to adhere to the repayment terms of the credit agreement and make repayments on schedule.

Ibits4321 said:

Will they allow him to transfer it to the new account?

Probably not, I suspect they will not let him open a new account when he actually applies.

Ibits4321 said:

Why are they making it a rigmarole...if they'll accept a new account, why can't they just let him use his old one? 

They are making it a "rigmarole" because he committed fraud. It would be surprising if they let him open a new account and there are legal issues with an account opened fraudulently and by someone underage. 

Ibits4321 said:

If his PayPal account is 'illegal' is his credit agreement with them legal?

Yes, because it is a separate legal agreement.

sourcrates

When you open a PayPal account, you are agreeing to a legally binding contract.  

Before an individual can enter into a legally binding contract, he or she must meet the legal contract age. 

The legal contract age is also referred to as the age of majority, which is 18 years old in most jurisdictions.

 

Minors usually cannot enter into a legally binding agreement such as a contract because they are not old enough to be held accountable for their actions. 

If such an instance occurs where a party of legal contract age enters into a legally binding agreement with one who is not of legal contract age, the latter may void the agreement, which is why they need to close the old account

The current agreement he has, signed when he was of legal age, is still binding, yes.