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  #1  
Old 11-16-2008, 02:37 AM
Angio333 Angio333 is offline
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Default Teen Racks Up $7,000 On His Own Credit Card

# 1:

The mother's son is 18 so he is an adult. He is old enough to go to war and vote. Referring him as a teenager makes you think of a child, not a legal adult.

The story makes it sound like he had the card for awhile. If that is true, then the CC company should be responsible for any charges prior to him turning 18 since they sent a card to a minor with his parent's permission. However, he should be responsible for every penny after he turned 18.

# 2:

If he was able to rack up that much money playing online games, then junior has time to get a job and pay for what he did. His mother needs to do some tough love.....make junior work and pay it off.

What do you think?

Note: Link provided upon request...I do not have enough posts to post it.
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Mom Says Teen Racked Up $7,000 On Own Credit Card

CLEVELAND -- A local family has to pay thousands after their teenage son racked up huge debt without his parents knowing he had a credit card.

His mother wants parents everywhere to know that she feels her son was lured in by a credit card offer. And she's worried it could happen to other children, too.

"I knew he was playing video games, but I didn't know he was paying to play these online video games," the teen's mother said.

His mother is holding the proof of how much her 18-year-old son paid to play those games. She is in shock every time she looks at the $7,000 bill.

"He told me that back when he was 16, he was sent in the mail a pre-approved credit card authorization and all he had to do was sign the bottom and they would send him a credit card," his mom said. "At first, it was fun to carry it and then he started using it."

She said she had no idea he was using his birthday and Christmas money to pay the bill, until now.

"I'm very upset. That's my son. That's my job. If I were to authorize him some exorbitant credit limit, that's up to me. I'm his parent. This is a company," she said.

Consumer credit counseling expert Jay Seaton said this is not the first time he's heard about teens being sent credit card offers.

"It really underscores the fact that families ought to be talking to young people about what that plastic means. It's not play money, it's reality. It's real and if somehow you get it, maybe you're not entitled to it," Seaton said.

The teen's mother said she called the credit card company and they referred her to their fraud department.
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  #2  
Old 11-16-2008, 11:05 PM
pants711 pants711 is offline
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Location: San Francisco, CA USA
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Default Re: Teen Racks Up $7,000 On His Own Credit Card

This is a perfect example to illustrate why basic economics and/or personal finance should be taught to every child right along with math, science, history, literature, etc., starting at home and continued in school.

Parents should have the same "serious talk" with their kids about personal finance as most do regarding sex, drinking, drugs, smoking, etc. I think most parents barely discuss finances w/their kids, if at all, and that is a big mistake. Parents just give their kids money or an "allowance" and that just teaches bad habits from the start. They get free money, no consequences, no debt to repay. They will view a credit card the same way.

I don't know this family, but I would guess they didn't drive home the importance of saving, budgeting, not over extending, the dangers of debt and/or credit cards, etc.

I blame the parents for the son racking up the $7,000 in debt. If the kid had been taught the way money works in the real world, he might not have even signed that application or at least discussed it w/his parents when it came in the mail.

I am not necessarily defending CC companies or their practices; some can be pretty shady. Their advertising does target teenagers, but a lot of companies do as well, including cigarettes, beer, etc. I believe it all starts with the parents and their teachings.
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  #3  
Old 11-18-2008, 02:52 AM
shahab6 shahab6 is offline
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Location: los angeles
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Default Re: Teen Racks Up $7,000 On His Own Credit Card

this is becoming way too common these days, people need to learn more about finance. They should teach it in schools
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Old 11-21-2008, 12:47 PM
LifeisGood LifeisGood is offline
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Default Re: Teen Racks Up $7,000 On His Own Credit Card

Parents need to take responsibility here by also educating your kids on credit cards.
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