Collecting on a Minor Account

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Question:

We recently charged off a minor savings account and reported it for collection. Can the minor be reported for collection and held responsible for the amount?

Answer:

The answer to this question can be found only in the state law where you operate or the minor lives. Deposit accounts are subject to contracts. In some states, deposit account contracts with minors are enforceable; in other states, minors can void such a contract.

First published on BankersOnline.com 10/4/04