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#2259574 - 09/10/21 07:32 PM Minor Accounts and ODP
J-Comply Offline
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Joined: Jun 2008
Posts: 8
If we offer ODP for all consumer accounts and customers, but decide not to offer ODP for our new, upcoming Minor Account, do you all foresee any issues with us doing so?

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#2259588 - 09/10/21 09:41 PM Re: Minor Accounts and ODP J-Comply
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 76,958
Galveston, TX
Since a minor cannot normally contract for debt, I see no issues.
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#2259604 - 09/12/21 12:26 PM Re: Minor Accounts and ODP J-Comply
Andy_Z Offline
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Andy_Z
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I agree with Randy but want to point out that (check your state law) a minor may be able to have their sole owner account and can still be liable for overdrafts and fees. But I don't believe, at least in Texas, that borrowing is allowed or encouraged. The inadvertent OD may be allowed, but an ODP would be a separate issue from a contracted loan and that is what comes back to Randy's comment about contracting for an ODP/debt. So separate the inadvertent OD from an ODP. Some banks will not voluntarily pay a minors account into the OD at all.

https://codes.findlaw.com/tx/finance-code/fin-sect-34-305.html - Reference
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