Posted By: J-Comply
Minor Accounts and ODP - 09/10/21 07:32 PM
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?
Posted By: rlcarey
Re: Minor Accounts and ODP - 09/10/21 09:41 PM
Since a minor cannot normally contract for debt, I see no issues.
Posted By: Andy_Z
Re: Minor Accounts and ODP - 09/12/21 12:26 PM
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