We allow for a minor to be added as an authorized signer on a parent credit card. Is there any prohibition for reporting this account, and payment information, to the credit bureaus for the minor? Thanks!

You would have to check with your credit reporting agency to see if they allow it, and then check your state law to see if anything else prohibits it.

Thank you!

That is a legal question that would most likely be dependent on state law.

To the best of my knowledge there is no Federal law that prohibits it nor am I aware of anything in the FCRA that addresses it.

Although the Metro 2 Guide does have this under the Surname Field. Notes: Do not report minors.
Might call and talk to you CB rep.

An authorized signer would not be an owner of the account.

CB - what you mentioned seems clear cut. Minor is subject to state laws. There are several ways to lose the protection of being a minor including getting married, entering the military, emancipation through the courts, etc.

A while ago, I was looking at (nameless) state regulations which indicated a male 16 could marry a female 14 (with parental permission). Once they were married, they lost the protection of being a minor.

Circling back to this, authorized signer is a minor. We need to check with legal counsel to see if it is legal in our state to report and with our credit bureau rep to see what their requirements are. I am assuming the second will cover the metro 2 requirements covered in this thread and here: https://www.bankersonline.com/qa/credit-reporting-loans-minors-0

anything else I'm missing?

authorized signer is a minor.

What the heck is an unauthorized signer on a loan?

Sorry - thinking one thing wrote another. This is for a credit card

An authorized user is just that - a user. They have no legal obligation to pay the debt, so no, you would not report an authorized user to a credit bureau regardless of age.

And to clarify - that will not impact their credit score positively or negatively?

Whose credit score? A minor should not have a credit score unless they are emancipated, as there should not be anything reported on them.

The minor's. Sorry, not trying to be difficult with this one but trying to understand our current process and what others are doing - venturing into territory I have not been in in quite some time. If the authorized user is not reported to the bureau, why does the CFPB state that is one reason a minor might have a credit score?

https://www.consumerfinance.gov/ask-cfpb/should-i-request-credit-reports-for-my-children-en-1271/
It is rare for these companies to maintain a credit file about a child. However, sometimes a minor child can have a file if:

Your minor child is an authorized user of your credit card, or someone else’s.

That is because the CFPB has no idea what they are talking about. Like I said, if you are not liable on a debt, how can that impact your credit score. A lender has no recourse against solely a user and the non-payment of the debt cannot be held against just a user and nor can the payment of the debt be credited to just a user.

However, many lenders do report authorized users. (This is often due to systems limitations.)

Thank you both for the answers (and patience). Randy, I think you need to say that first part louder so everyone can hear you!

The CDIA Metro 2 Reporting Guide has a code for authorized users, so if you report correctly on an authorized user, they are not treated as if they were liable. It also indicates that you should NOT report an authorized user if they are under the age to contract.

Thank you, I had looked at that but am now going to purchase it. Sounds like we need to do a compliance audit on this.

And to clarify - that will not impact their credit score positively or negatively?

Look up Credit Card Piggybacking

Sounds like a pure UDAAP to me. Get credit for an account with no actual liability. It is going to take one lawsuit to make that scheme from crashing down. Dad gave me a credit card and said I could use it, but he did not pay his bills and ruined my credit. It makes no sense in my mind.

Totally agree with that thought, Randy. I have no idea what the CRAs do with the info if it's reported. I can't imagine that they would report history (positive or negative) on an authorized user that has no liability, but I honestly don't know. I think it's a better practice not to report it at all, but if anyone does report, they must follow the Metro 2 guidance and use the code for an authorized user. Doing otherwise would risk an FCRA violation.