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Is it illegal for bank to give loan to 17 year old?

  • 24-02-2013 1:35pm
    #1
    trkell
    Registered Users, Registered Users 2 Posts: 1 ✭


    In 2003 age 17 I applied for a personal loan of €5,000 from an Irish bank for a period of 5 years. In 2007 I defaulted on the loan payments after paying the loan for 4 years as I lost my job. I also paid PPI for the 4 years and it didn't cover me for when I stopped working.

    The loan was taken approved over the phone and with no guarantor and as I was working full time since 2000 and my wages was going into that account.

    Currently I have a poor credit rating over the loan due to defaulting on payments. Is it legal for the bank to give the loan and would I have a case or be able to clear my name?

    Thank you


Comments

  • #2
    monkeypants
    Closed Accounts Posts: 2,386 ✭✭✭monkeypants


    Have you paid the loan since then?


  • #3
    mathepac
    Banned (with Prison Access) Posts: 4,991 ✭✭✭mathepac


    Under the age of 18 you cannot enter into a contract and the terms of such a contract are unenforceable IIRC.

    Did the bank ask for proof of age (birth cert, passport copy) or did you lie about your age on the phone?

    IANAL


  • #4
    average_runner
    Registered Users, Registered Users 2 Posts: 12,864 ✭✭✭✭average_runner


    trkell wrote: »
    In 2003 age 17 I applied for a personal loan of €5,000 from an Irish bank for a period of 5 years. In 2007 I defaulted on the loan payments after paying the loan for 4 years as I lost my job. I also paid PPI for the 4 years and it didn't cover me for when I stopped working.

    The loan was taken approved over the phone and with no guarantor and as I was working full time since 2000 and my wages was going into that account.

    Currently I have a poor credit rating over the loan due to defaulting on payments. Is it legal for the bank to give the loan and would I have a case or be able to clear my name?

    Thank you


    Just take responsibility for what u did.


  • #5
    Play To Kill
    Closed Accounts Posts: 485 ✭✭Play To Kill


    average_runner wrote: »
    Just take responsibility for what u did.

    If it was illegal then the bank needs to take responsibility for what it did.


  • #6
    Procrastastudy
    Closed Accounts Posts: 6,224 ✭✭✭Procrastastudy


    Possible that you affirmed the loan on hitting 18 and making payments. Might be worth giving one of the various PPI claim back lines a call to see if you can get any of the PPI back. Perhaps use that to clear the balance.

    You could try mabs or flac for some proper legal advice.


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  • #7
    ResearchWill
    Closed Accounts Posts: 4,111 ✭✭✭ResearchWill


    A person under the age of 18 can not (except in limited circumstances) enter a contract.

    OP seek legal advice on this matter.


  • #8
    ResearchWill
    Closed Accounts Posts: 4,111 ✭✭✭ResearchWill


    average_runner wrote: »
    Just take responsibility for what u did.

    Considering most banks have not taken responsibility for what they did, I think the OP is dead right if the contract was illegal to not only walk away but to seek to have his credit rating put back.


  • #9
    MagicMarker
    Banned (with Prison Access) Posts: 32,865 ✭✭✭✭MagicMarker


    Legally, the bank is wrong. Morally, the OP is wrong.


  • #10
    ResearchWill
    Closed Accounts Posts: 4,111 ✭✭✭ResearchWill


    MagicMarker wrote: »
    Legally, the bank is wrong. Morally, the OP is wrong.

    Do you think any bank looks at morals when dealing with a client. If banks lend and collect using morals then fine, fact is they don't.


  • #11
    seb65
    Registered Users, Registered Users 2 Posts: 402 ✭✭seb65


    ResearchWill wrote: »
    Considering most banks have not taken responsibility for what they did, I think the OP is dead right if the contract was illegal to not only walk away but to seek to have his credit rating put back.

    The contract is not illegal. An illegal contract is one that is formed for a purpose that contravenes the law of the State, i.e. prostitution. The contract is only voidable.

    The OP reaffirmed the contract, on multiple occasions, by meeting the repayment provisions after he/she reached the age of majority.

    Also, where a contract is for the necessities of life, a minor contractee may be held to it.


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  • #12
    ResearchWill
    Closed Accounts Posts: 4,111 ✭✭✭ResearchWill


    seb65 wrote: »
    The contract is not illegal. An illegal contract is one that is formed for a purpose that contravenes the law of the State, i.e. prostitution. The contract is only voidable.

    The OP reaffirmed the contract, on multiple occasions, by meeting the repayment provisions after he/she reached the age of majority.

    Also, where a contract is for the necessities of life, a minor contractee may be held to it.

    I think you missed my post 7, and in the post quoted the "if" yes you are correct to refer to the contract as one that may not be enforced rather than illegal. By the way the important word in the last sentence is "may".

    I must look it up but I thought contract with minor are void rather than voidable, I accept I may be incorrect on that.


  • #13
    Paulw
    Registered Users, Registered Users 2 Posts: 13,381 ✭✭✭✭Paulw


    But, did the OP commit fraud, by not informing them of his age at the time of taking out the loan?


  • #14
    mayordenis
    Moderators, Education Moderators Posts: 9,654 Mod ✭✭✭✭mayordenis


    A bank can enter this contract they just can't enforce it, it's voidable, I think it would of needed to be voided reasonably shortly after turning 18 though. Reasonably is obviously a vague term but I guess since the default didn't happen until you were I guess 21 the contract would hold up.


  • #15
    mayordenis
    Moderators, Education Moderators Posts: 9,654 Mod ✭✭✭✭mayordenis


    seb65 wrote: »
    Also, where a contract is for the necessities of life, a minor contractee may be held to it.

    True I would say though that it's for the sale or supply or necessaries not for credit to purchase necessaries so I don't think it would apply in this case.


  • #16
    Stheno
    Moderators, Business & Finance Moderators, Science, Health & Environment Moderators, Society & Culture Moderators Posts: 51,690 Mod ✭✭✭✭Stheno


    Anyone noticed the OPs claim they were working full time from the age of 14?

    Is it specific types of contract that are voidable? E.g. people can work and have contracts (I thought from the age of sixteen) before they are eighteen?


  • #17
    Gumbi
    Registered Users, Registered Users 2 Posts: 4,698 ✭✭✭Gumbi


    2 wrongs don't make a right.


  • #18
    MagicMarker
    Banned (with Prison Access) Posts: 32,865 ✭✭✭✭MagicMarker


    ResearchWill wrote: »
    Do you think any bank looks at morals when dealing with a client. If banks lend and collect using morals then fine, fact is they don't.
    O....k.

    Not sure what that has to do with what I said?


  • #19
    ResearchWill
    Closed Accounts Posts: 4,111 ✭✭✭ResearchWill


    MagicMarker wrote: »
    O....k.

    Not sure what that has to do with what I said?

    Well you said "Legally, the bank is wrong. Morally, the OP is wrong." To which as you brought morals into it I said "Do you think any bank looks at morals when dealing with a client. If banks lend and collect using morals then fine, fact is they don't."

    The point being if we are going to deal with an issue from the moral perspective (to be clear I think we should) then both sides have to so act. I have seen banks act and its rarely from a moral perspective. It may be legal but can often be lacking morals.


  • #20
    valleyoftheunos
    Closed Accounts Posts: 2,332 ✭✭✭valleyoftheunos


    ResearchWill wrote: »
    A person under the age of 18 can not (except in limited circumstances) enter a contract.

    OP seek legal advice on this matter.

    Is it not the case that if a minor enters into a contract the contract is voidable by the Minor and then can be ratified by the minor upon reaching majority? The OP here is likely to have ratified upon majority by continuing with the payments and not repudiating.
    Stheno wrote: »
    Anyone noticed the OPs claim they were working full time from the age of 14?

    Is it specific types of contract that are voidable? E.g. people can work and have contracts (I thought from the age of sixteen) before they are eighteen?

    Contracts for employment which are for the overall benefit of the minor are enforceable against the minor.

    OP we can't offer legal advice here. you should see a solicitor who will be able to advise you.


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