I am not looking for opinions of "right or wrong" but solid answers based in law or the rights of consumers, or helpful links. Thanks!
Here is the situation;
My daughter opened and checking account with B of A when she was 15 or when she just turned 16. (12/2006 to no later that 4/2007)
She overdrew the account, and had lost her job. She spoke to the account person at the bank since she was going to do the right thing and pay it off, and she was told she had up to 3 months to repay. They seemed to want to work with her. (This happened toward the end of 2007)
Almost 2 1/2 months later she finally saved enough money and went in to pay. She was told that her account was charged off. (I had to explain to her what that meant) There was nothing to pay off, or they couldn't accept payment. Sounds strange, but maybe the person was not trained correctly is my best excuse. I ultimately figured they did this instead of sending it to collections since she was a minor (?)
But since that time she received no collection notices, or contact from any collection agencies, so I figured it was done just from the banks inactivity. She said (And I remember her saying something at that time) she received a paper showing it was closed and at 0. We are a military family so we have moved 2 times since and cannot find that paperwork now. I told her by losing that she just shot herself in the foot potentially. But anyway.... to continue.
Now she has turned 18 as of March 09. And now suddenly a collection agency has been contacting her over this account she was told was charged off. There was no contact prior, nothing on her credit file, and she had opened a bank account with wells fargo, and there was nothing negative through the banking system UNTIL her 18th Birthday.
This "collection agency" is now reporting to her credit file that it was opened a month before her 18th Bday. And that the terms were for 1 month. And the original amount was 50 dollars more than it really was. The date of statis was a month after 18th Bday, and Account history is; Collection as of March 2009 to May 2009.
I have informed her to go and get a print out from B of A on the original date she opened it, when it was closed, the amounts in question, etc (even though over the phone B of A says it has added two charges since it was sent to 2 different collection agencies - yet she has never been contacted before this current collection agency!)
First I am going to have her get the info she needs from B of A. (Dates, original amount, etc) And then require the Collection agency validate this debt. Which should further establish the correct dates. And have the credit agency (in the least) correct the incorrect dates.
But is this legal for them to pursue someone for a debt when they were a minor, AFTER they turn 18 and report it as a debt that "seems" to occurred right at or after her 18th Birthday?
I cannot seem to find anything to help me with this, Does anyone have any advice on where to look, or perhaps know the answer to this?
There seems to be a void on the internet on the rights of someone being pursued for debts that occurred when they were a minor, and how they should be reported, or if it can be LEGALLY reported to credit files.
Thanks
How did she open and account at that age. She wasn't old enough to enter into any legally binding contract. Did she have a co-signer?
Send the collection agency a debt validation letter (certified mail with return receipt) requesting a complete payment history of the account, their right to collect against it and a copy of the original contract she signed to open the account. If they provide this information, you can prove she was a minor when she opened the account and isn't liable. If they don't provide EVERYTHING requested, send them a letter to cease all collection activities until they can prove this is a legal debt. If not they will be in violation of the fair debt collection practices act (google this to find out your rights)
If they report to the credit agencies you can dispute it with a copy of your letters, the receipt and their responses(or lack of). Don't deal with debt collectors over the phone. Tell them you will only deal with them via USPS mail.
Yes, the collection Agency can collect at any age as long as their is a debt to be collected. She needs to call Bank of America directly and work something out with them. Sometimes if you do that they will call off the collection Agency.
Banks have no uniform policy when it comes to setting up checking accounts for minors. Bank of America, will open checking accounts for teenagers 16 and older as long as they have two pieces of identification, such as a driver's license and a school ID. Citibank, however, won't open a checking account for anyone under 18.
UCC Contract law varies from State to State so you would need to check the state laws that you lived in at the time, to see if it was legal for a minor to sign the contract.
Tell the collection agency to go fly a kit. Your daughter was a minor at that time so she's ok, but my question is: Were you a co-signer/was your name also on the account. If not, not to worry, but if yes, then get your pen out and get ready to write them a check. Good Luck.
She owes the money and needs to repay it. Her failure back then to make regular payments against the debt was the problem. She was told she had 3 months to repay. That meant making a payment weekly toward the debt.
She should work out a payment plan with the collection agency and get this cleared up now. Boga has sold the debt and cannot help.