Debt Management in the News
Anger over children’s debit cards
30 June 2008
Lloyds TSB has been branded ‘Irresponsible and dangerous’ for offering children as young as 11 new Visa debit cards.
The debit cards, which will allow children to buy goods over the Internet unsupervised, have recently been sent out to thousands of children under 16 without obtaining permission from their parents.
One 15-year-old boy was found to have used his to buy Viagra, a fake adult ID, and cheap cigarettes. His parents were only alerted to it on receiving a customs demand for duty on the cheap cigarettes, bought on an overseas website.
Vincent Cable, the Liberal Democrats Treasury Spokesman said of the move: “Once banks have got someone hooked, they keep them for most of their lives. This is a way of seducing new customers, but a really irresponsible and dangerous way.”
"You would have thought banks might have learned some lessons from their irresponsible lending on credit cards and mortgages. But now they seem to be compounding the problems by adopting the grossly irresponsible policy of encouraging youngsters to spend on these debit cards."
Lloyds TSB are not alone in sending debit cards to children, but there are many inconsistencies in the way they are issued. Barclays for example, have said that children must open current accounts in person, in branches, with their parent or guardian present. Their parents must also sign if they wish their child to receive a debit card.
Lloyds have replied by saying that their letter included a guide for parents and that Visa could block unsuitable sites, such as gambling or adult sites.
A spokesman said: “When we wrote to these customers we involved parents; including parental guides in initial correspondence and when the card arrives. The parent or guardian could request the card wasn’t issued or at any time block it immediately if it was mis-used.”
Do you think that this move is irresponsible or are the banks teaching children important financial lessons? Why not discuss it in our forum?
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