Lloyds TSB has this week been criticised for promoting Visa debit cards to kids, without always getting the green light from mum & dad. The bank’s excuse is they don’t always know where the parents are. But perhaps the suprising thing is that it’s standard industry practice to promote cards to kids as young as eleven.

Many people will be mortified at the prospect of a big bank getting its claws into their child before they turn sixteen, but it’s important to remember we’re talking about a debit card here – not a credit card. The bank argues it can be used to make savings online and to teach the basics of cash. It can’t be used to go overdrawn and suposedly can’t be used to make adult purchases.

One furious dad uncovered by the Guardian would beg to differ, claiming his young son got hold of Viagra and fake ID (amongst other things) with the his Lloyds TSB plastic. But that’s opening up a whole new can of worms, because you could argue the lad had obviously got funds in his account plus unrestricted internet access, so pinning his behaviour purely on the fact he had a debit card seems a little narrow minded. What’s not acceptable is the fact his dad wasn’t aware the bank had offered him the card in the first place.

There’s no question banks should always ensure the parents or guardians of any child are on board with the idea, but some of the outrage expressed this week seems to miss the point. Children need to learn about money and start being responsible for it if they’re to wise up before adulthood. If having a bank account is acceptable to many, why not the means to spend some cash in the way most people spend it? It might not be for everyone, but if the bank had got its act togehter on parental consent then it might not have created such a palarver. It seems like they didn’t, which isn’t on.

For the avoidance of doubt, Wonga is a credit-based service and will therefore definitely not be availble to under-18s!

This entry was posted on Tuesday, July 1st, 2008 at 10:07 am