My niece has a young workers account with a well known bank, she is 17 years old. When she received her statement she had 25.00 x 2 for being overdrawn. She was 15.00 overdrawan but is it legal to charge her for being overdrawn?
2007-02-06 20:37:45 · 9 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Yes, anyone of any age can be charged for being over drawn
2007-02-06 20:41:29 · answer #1 · answered by mark 7 · 0⤊ 0⤋
Read the small print on the Terms and Conditions (ask for a copy - they have to give you one). Banks cannot lend money to under 18's as they cannot legally be made to repay the money, that's why she won't get a credit card. The bank have probably allowed her to go overdrawn because she has a good account but because of her age I don't believe they can charge her.
Read the T and C's, then ask nicely for the bank to repay the charges and get them to explain how she can avoid them in future. They have a legal obligation to notify her of any charges due so she needs to read all mail from the bank - that's the time to challenge it.
2007-02-06 20:51:00 · answer #2 · answered by Katkin 2 · 0⤊ 0⤋
Technically the bank can charge her for going overdrawn, however as she is under the age of 18, it is technically unlawful for the bank to loan her money, by allowing her to go overdrawn they have in affect loaned her money. Thus a call to the customer service department should result in the charge being removed
2007-02-06 23:10:09 · answer #3 · answered by ADAM M 1 · 0⤊ 0⤋
I can't understand why the bank have let her get overdrawn, maybe she needs your help to stop this from happening again.
2007-02-06 20:49:44 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Most banks will remove the charge if you ring and complain (in a nice way). However they will only do it once or twice. Yes they can charge her its in the contract for the account (cant if she was under 16)
2007-02-06 20:43:45 · answer #5 · answered by mrbatfink 3 · 0⤊ 0⤋
It depends on which country you are in. In the UK it is legal, but the banks tend to telephone or write beforehand, so i would go to the bank and expalin how she became overdrawn.
2007-02-06 20:47:20 · answer #6 · answered by Anonymous · 0⤊ 0⤋
no they cant charge you for being overdrawn, but they can charge for arranging the overdraft and mis use of the account
2007-02-06 20:45:30 · answer #7 · answered by duncanjfield 2 · 0⤊ 0⤋
no i read on my daughter statement that she only got a card cash account and no chargers for under 18.you can claim bank chargers back go on motley fool web site .good luck
2007-02-07 01:00:26 · answer #8 · answered by diane o 3 · 0⤊ 0⤋
No as she can't get credit
An overdraft is credit
2007-02-06 22:53:01 · answer #9 · answered by Elle J Morgan 6 · 0⤊ 0⤋