My friend's kid got a credit card and is under the age of 18 but the card is in the childs name. Her mom does not have money to pay the bills she has raked up. Will her mom be held responsible? What will happen?
2006-09-30 15:07:33 · 9 answers · asked by Kate 1 in Business & Finance ➔ Credit
According to business law, the debts must be written off by the creditor company provided that the minor terminates the contract prior to reaching the age of majority.
According to contract law, both parties must have the mental capacity to consummate and perfect the contract. A 16 year old is a minor in the eyes of the law and thus, lacks the mental capacity to understand the terms and provisions of any contract. As such, the minor can terminate a contract at any time before age 18 without recourse.
The debts of the child, which were generated under an invalid credit agreement (contract) to begin with, do not transfer to the mother, so, in actuality, the creditor has no other alternative but to incure the related losses and write-off the debt for accounting and tax purposes.
On the criminal side, however, the creditors would have to present convincing evidence that the mother orchestrated the whole fraud against them. It would be difficult to get a hold of evidence to prove the mother's intent and agenda. How can you prove beyond a reasonable doubt that she used her child as a pawn in this credit card scheme?
And with cost-prohibitive lawyers fees and such, it is much more cost effective just to write the debts off and move the hell on.
Please note that a lot of children NEVER terminate the contract BEFORE reaching the age of majority and then begin making purchases and payments on the account AFTER TURNING the age of majority.
This sequence of actions means that the "minor", who is now an adult, validates and ratifies the terms and conditions of the credit agreement through activities such as making payments. As a result, the newly christened adult agrees to the terms and conditions of the credit agreement as well as the outstanding balances as printed on the monthly billing statements. This adult no longer has the unique privilege of terminating the contract without recourse.
2006-09-30 19:25:54 · answer #1 · answered by DaMan 5 · 2⤊ 0⤋
Whoever applied for the credit card will get into trouble. If the kid did it on his own and does not pay the bill, the credit card company may file a charge against the kid. If he is under the supervision of the parent, they could come after the parent, too.
2006-09-30 15:21:21 · answer #2 · answered by spot 5 · 0⤊ 1⤋
The cpa is correct. I would have her mother call the Credit card company and tell them to cancel the account because it was issued to a minor and minors can not sign contracts. Have the credit card company write a letter saying the she and her daughter will no be responsible for the debit. If they are uncooperative get a lawyer.
Disclaimer
I am not a lawyer
2006-10-02 13:20:02 · answer #3 · answered by webworm90 4 · 1⤊ 0⤋
If the child uses the card, the child is not responsible. One thing to remember is once the child reaches the age of majority, if he makes even one payment on the card then the whole debt is his. That's called ratification.
Now, here's the tricky part. If mom uses the card....the child, not being of legal age cannot grant permission. Therefore, mom is doing it at her own risk. Legally, the card company can go after the mom but your comments seem to suggest that she is judgement proof so civil action probably won't be an issue. Now there's about a 1% chance someone will decide to split hairs down at the card company and go after them for fraud.
If mom knows that she is insolvent then they can prove that she created debt that she had no intention of repaying. A long shot, but possible.
Best bet?......Send the card back.
2006-09-30 20:20:46 · answer #4 · answered by Jack 6 · 0⤊ 2⤋
If it were my child, I would insist that the kid work to repay the debts she incurred. Otherwise, everyone else ends up paying for this fraud. Did the child use her own social security number (which could screw up future credit) or under her mom's number (which could screw up mom's credit) or under a fake social security number (which could screw up someone else's credit and also could be a crime)? Unfortunately, when our kids screw up and they are still under 18, we parents are responsible for willful or malicious damage they cause. Thus, even though the child was not able to legally enter a contract, the credit card company may find a way to pursue the parent under civil law. The mother may want to consult an attorney.
2006-09-30 15:41:17 · answer #5 · answered by just♪wondering 7 · 0⤊ 1⤋
the parent is responsible until the child is 18. and it sucks.trust me. i'm 16 and i have 3 credit cards and if the bill isnt paid then they get to pay intrest and what not and yeah.
2006-09-30 16:28:12 · answer #6 · answered by Anonymous · 0⤊ 2⤋
Parents will not be responsible, the kid will. Some parents use their kids SSN's to get socials and the kids when they get older, have to fix it all...
A few years ago I got a credit card application in the mail and I made it out in my dogs name. Needless to say, my dog got credit under an assumed SSN. Card came and all... goes to show as long as you can get a SSN, you can get anything.
2006-09-30 15:11:45 · answer #7 · answered by Anonymous · 0⤊ 2⤋
the infant would be tried for credit card fraud and identity theft and might face intense fines and time in juvie. the mum and dad would be financially to blame for any expenditures the minor made (ex: if he went loopy and racked up $3,000 in Amazon or iTunes expenditures on the cardboard, then his mum and dad would desire to pay for it out of their own wallet). while you're pondering doing this, i might advise you not.
2016-10-18 06:54:42 · answer #8 · answered by ? 4 · 0⤊ 0⤋
Her mom will be responsible since she is a minor.
2006-09-30 15:14:59 · answer #9 · answered by The Big Shot 6 · 0⤊ 1⤋