You would think that, generally speaking, banks are staffed by people who have a modicum of common sense.
On the following evidence, you might be inclined to change your opinion…
This is because the great and good staff of Lloyds TSB have been mailing debit cards direct to children as young as 11 without telling their parents.
Not essentially a huge huge problem if the children were buying nice things like toys, CDs and DVDs; unfortunately, this little glimmer of financial freedom saw a 15 year old buying cigarettes, alcohol, Viagra and porn videos over the internet!
In the past, any child aged 11 to 15 who held a current account was limited to debit cards that could be used only in cash machines or at bank branches.
The new cards could let them spend large sums on the web, potentially emptying their accounts, and all without their parents' knowledge (which is probably the whole point for them surely?)
The new cards are Visa-enabled, meaning they can be used anywhere that displays a Visa sign. The bank takes a fee from the retailer every time a card is used.
Lloyds TSB insists it is the parents responsibility to keep a check on how their children use the cards and says there are safeguards to ensure they cannot be used on adult websites.
But the 15-year-old clearly had no trouble buying goods supposedly restricted to adults!
His parents found out only when they received a Customs demand for duty on the cigarettes, which had been bought from a foreign websites. The boy's father contacted Lloyds TSB, who then admitted that other parents had also complained.
Consumer groups and MPS have reacted with horror; LibDem Treasury spokesman Vince Cable said:
'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.'
Chris Tapp, director of the money education charity Credit Action, said:
'It goes against common sense for banks to cut parents out of the loop... Parents need to have some control over how children are spending their money.
'Children may be swayed by advertising or other influences to make an impulse buy. Some may end up buying things that are unwise.
'We all know about the monsters that lurk on the internet in terms of the things that you can access with a card.'
The father of the 15-year-old, who asked not to be named, believes Lloyds TSB is promoting illegal activity. He said:
'I pointed out to them that by enabling children to purchase goods illegally over the internet, they were aiding and abetting a crime.
'Their response was that it was not down to them to monitor other people's children, and that teenagers who were brought up well would not abuse this facility.
'It was not their policy to inform parents as they would expect the children to do so.'
Yes, and of course every child is going to tell its parents that its racking up dodgy purchases on debit card they probably shouldn't have, aren’t they?
Lloyds TSB could not say how many cards have been sent out but it is thought to be many thousands; it also says it has a special system to prevent purchases from adult sites. It also said it was willing to investigate how the 15-year-old boy could buy cigarettes, Viagra and a fake ID despite the safeguards.
- A few questions to think about
The main point of this issue is that Lloyds TSB has been sending out cards without telling the parents or guardians of the children.
Lloyds TSB's excuse is that:
'We don't always have the parents' contact details or know the family's circumstances. There are cases where the child might bank with us but the parent might not.'
It seems highly unlikely the bank has never had contact with these people. Think about it; do children go by themselves to open an account or do they go with an adult?
Also, does the bank open accounts without checking with the parent and verifying things such as a home address? Or does it take the word of an 11-year-old? Unlikely; it speaks to the parents or guardians and if that is the case, then that’s the database Lloyds TSB should be using when pushing Visa-enabled debit cards onto children!
And if it can't get authorisation from a parent before issuing a card, for whatever reason, then tough! Lloyds TSB won't be able to set up a Visa account with that child so it shouldn’t be a huge loss.
Isn’t is odd that when you break your overdraft limit by just a few quid, the banks track you down quicker than Jason Bourne and hits you with penalties? Why the heck can’t they apply the same sort of urgency to locate children's parents?
Perhaps, if they dim we wouldn’t have children getting into bad financial habits (or worse!) at an early age.
So. whose at blame in this little situation? Is it Lloyds TSB for giving cards to kids who are going to misuse them? Or is down to the parents to monitor what their kids are doing with them?
Should children even be given Visa cards? Let us know your thoughts!
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