Bank charges and overdraft under 18?

[rosysparkle]

My partner's son opened an Alliance & Leicester account when he was 16, for his wages. He provided his date of birth and identification at the time of opening the account, and it was an account designed for young people between 16 and 21.

 

He was able to withdraw money from cash machines even when he had no money in the account, A&L allowed him to go as much as £200 overdrawn and charged him accordingly.

 

Now I acknowledge that he shouldn't have withdrawn money which took him overdrawn, but it is my understanding that under 18s are not permitted to have overdrafts and that as such, A&L should have refused his requests for cash.

 

He's 18 now, and has just confessed to the financial mess into which he's got himself.

 

I have looked at the T&C for the Plus21 account on A&L's website but can't find anything about under 18s specifically. On other bank websites I have found that under 18s are not permitted overdrafts, and are not charged bank charges at all.

 

I have not yet added up how much he has been charged while he was under 18, but it is my understanding that he should not have been charged at all, nor permitted an overdraft.

 

What is the best way to tackle this with the bank to reclaim his charges and to make a complaint about him being allowed to have an overdraft?

[midge61]

Hi

 

Check the BBA website for what it says in the banking code about under 18yr olds and if it ststes that they are not to be given credit i.e. overdrafts then write and complain quoting this.

 

Good luck

[midge61]

Hi

 

Here is a link to the banking code

 

http://www.bba.org.uk/content/1/c6/01/30/85/Banking_Code_2008.pdf

[rosysparkle]

Cheers midge, it doesn't have much about under 18s, just says banks should take care in sending out marketing material. It turns out that he doesn't have access to all his online statements, so I've sent (or rather he has sent) a subject access request to the bank. I estimate he's been charged around £1000 prior to him turning 18, but I need the statements to confirm.

[midge61]

hi

 

I have a scout around on the web and have found the following on MSE

 

"Principle in law is that under 18's do not have capacity to enter a contract unless it is a contract of "necessity". On this basis, under 18's seem to have very good legal rights to make a recovery."

 

and a bank worker who also posts on here stated that a bank has to refund charges on an account where the holder is under 18.

 

So it would seem all is in your favour. If you are still unsure try CAB and see what they say but I would try a strongly worded letter if it were me.

 

ps you could also try ringing the FOS on mon and see what they say.