Got into debt age 17

[Laura Loo]

I got into a small amount of debt on a high street bank current account aged 17. They let me keep drawing on money that wasn't there. I know it was stupid to keep withdrawing money I didn't have but at the time I was a naive youngster. Now, 5 years on I've received a letter asking for repayment of the money.

My question is is it legal to "lend" money to a 17 year old and is there anywhere I can get advice without going to citizen's advice (I work out of town and are never around when they are open)

Many thanks

[Laura Loo]

bednobs
Sat 23/08/08
12:37


do you fancy having the bailifs round?
do you fancy having a ccj?
do you fancy many sleepless nights?
do you fancy having this debt as a milstone round your neck in 20 years time?
If the answer is no, get in touch with the creditors and arrange to pay. Surely this is important enough for you to make a special effort to get to the CAB? or get in touch with this charity http://www.cccs.co.uk/
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Laura Loo
Sat 23/08/08
13:21



Question Author
Thank you for your replies..I think I will post this question into legal as my my question is about whether or not it is legal to lend to 17 year olds. I fear that young people may be getting themselves in debt before they are even able to obtain credit and it just doesn't seem right.

I'm fully aware of the implications of not paying debt (I sell peoples repossessed houses for a living) I just wonder whether this should ever have been allowed to happen in the first place.

Thanks

[luxury]

Hi Laura Loo,

Have a read of this from Money Expert.

http://forums.moneysavingexpert.com/showthread .html?t=938299

An overdraft is lending money which requires a contract. Contracts cannot be given to under 18s.

When I was under 18 my bank would let me go below a few �s but thats it.


extract taken from above post.

[tubeway]

Contracts CAN be given to under 18s - but with some exceptions (such as when they are lending for necessities) they can not be legally enforced. This is why many organisations will not lend to under 18s - they can not legally enforce the return of the money.

[kempie]

Contracts made with a minor for debts and the sale of goods that are not for "necessaries" require positive ratification in order to be enforceable. The ratification must take the form of an acknowledgement that the debt is binding after attaining the age of 18.

In England and Wales, restitution is possible under the Minors' Contracts Act 1987...

"Where a person ( �the plaintiff�) has... entered into a contract with another ( �the defendant�), and the contract is unenforceable against the defendant (or he repudiates it) because he was a minor when the contract was made, the court may, if it is just and equitable to do so, require the defendant to transfer to the plaintiff any property acquired by the defendant under the contract, or any property representing it."

http://www.statutelaw.gov.uk/content.aspx?LegT ype=All+Primary&PageNumber=38&NavFrom=2&parent ActiveTextDocId=1327251&ActiveTextDocId=132725 6&filesize=1412

[Ice.Maiden]

I don't know the legalities of this Laura, so it might be best to have a word with the CAB first. If you find that legally you have to pay up, then I'm sure that if you visit your bank manager and explain your point of view in a calm way, that you could come to some arrangement to pay off what you owe - and ask for any further interest to be frozen. I can remember mis-handling my first credit card, and suddenly owed about �4000 on it. As a "punishment" my parents refused to bail me out, so after seeing the bank manager, they allowed me to pay it off on a monthly basis. I had a set allowance to live on, but paid it off in 6 months, and by doing so, learnt the hard way and it taught me a valuable lesson.