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Can a collection agency pursue a minor for a credit card debt?

Can a collection agency pursue a minor for a credit card debt?

Q: Why is there another name on my credit report?

Another name may appear on your credit report for various reasons, such as being an authorized user on someone else's account, identity theft, or a reporting error. If the name is not familiar to you, it's crucial to investigate further and dispute any inaccuracies with the credit reporting agency.

Q: Why would someone else's name be on my credit report?

Someone else's name may appear on your credit report if you share a credit account, such as being an authorized user. It can also happen due to clerical errors or identity theft. If the name is unfamiliar, it's important to investigate and correct any inaccuracies with the credit reporting agency.

Full question:

My sons credit report states that he has an unpaid credit card balance of 4000.00. After research we discovered that when he was 16 his daddy requested an additional card on his credit card account with my sons name on it so he could purchase gas. His daddy had defaulted on this account. Since my son was underage and did not sign anything can the collection agency do this.

Category: Debts and Credit
Subcategory: Credit Cards
Date: 04/07/2025
State: North Carolina

Answer:

Generally, a minor added as an authorized user on a credit card account is not responsible for the debt unless they are emancipated. The situation may depend on whether your son made any purchases on the account after reaching the age of majority, which could be seen as accepting the debt.

Acceptance of a contract requires that the person knows about the offer and intends to accept it. In consumer transactions, acceptance can occur when someone takes possession of a product and pays for it. However, what counts as reasonable acceptance can vary based on the specific circumstances of the contract.

Contracts with minors can usually be disaffirmed unless they involve necessary items. Necessaries include essential goods like food, clothing, and medical care, but what qualifies can depend on the minor's individual situation. In this case, since your son was underage and did not sign anything, he likely has a strong argument against liability for the debt.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

What do I do if someone else's name is on my credit report?

If you find someone else's name on your credit report, first check if it's a case of identity theft or a reporting error. You can dispute the error with the credit reporting agency by providing evidence. If the name belongs to a family member or someone authorized on your account, clarify your relationship to the debt. It's essential to monitor your credit report regularly to ensure its accuracy.

Why is there another name on my credit report?

What is the federal law for credit report?

The Fair Credit Reporting Act (FCRA) is the federal law governing credit reports. It ensures the accuracy, fairness, and privacy of information in consumer credit reports. Under the FCRA, consumers have the right to dispute inaccurate information and obtain a free credit report annually from each of the major credit reporting agencies.

What is the 7 year rule for credit report?

The 7-year rule refers to the time frame for how long negative information, such as late payments and charge-offs, can remain on your credit report. Generally, most negative items will fall off your report after seven years, while bankruptcies can stay for up to ten years. This rule helps consumers recover from past financial issues.

Why would someone else's name be on my credit report?

What happens to unpaid credit card debt after 4 years?

After four years, unpaid credit card debt may still exist, but it could become more challenging for creditors to collect. Many states have a statute of limitations that limits the time creditors can sue for debt collection, often ranging from three to six years. However, the debt may still appear on your credit report for up to seven years.