obligations of a minor

[aabtw]

At the age of 16 my father gave me a credit card from a major oil company. I was to use the card for gasoline and my father would pay the bill. We both signed the contract and I received the card in my name while the bill was sent to him. (He resides in another state.) As I stated I received the card at age 16 and it was to expire 2 years later. During the two year time period, I later found out, my father was late with payments and eventually stopped making payments altogether. The oil company cancelled the card and upon my inquiry I was informed of the very large amount due. Since the bills, and collection notices, were being mailed to him I was not aware of this until the damage was done. The amount due was paid out through a payment plan my father set up with the company but my credit report has been a disaster ever since. I am now 30 years old and have never enjoyed an interest rate less than double digits. Can my credit report reflect this nonpayment since 1.) I was a minor at the time the contract was signed and 2.) The bills and notices were not sent to me? If I in fact have no legal recourse, then is there a way to clean up my report or a time frame when the information would no longer be used to affect my credit?

 

[Michael Wechsler]

There are a couple of problems. First, now that you are 30 you have 'ratified' the contract. If you didn't want to be bound you should have spoken up a long, long time ago. Part of the problem is also that you are likely jointly and severally liable (liable together and seperately) for part and the whole amount due.

At this point you may want to try to make a settlement with the insurance company. You can tell them what you're telling us and they won't get the money in any reasonable time, if at all, in this manner. Negotiation never hurts but be perpared to say what you are seeking and how you can resolve this with them so that you can avoid having this linger on your credit.

Originally posted by aabtw
At the age of 16 my father gave me a credit card from a major oil company. I was to use the card for gasoline and my father would pay the bill. We both signed the contract and I received the card in my name while the bill was sent to him. (He resides in another state.) As I stated I received the card at age 16 and it was to expire 2 years later. During the two year time period, I later found out, my father was late with payments and eventually stopped making payments altogether. The oil company cancelled the card and upon my inquiry I was informed of the very large amount due. Since the bills, and collection notices, were being mailed to him I was not aware of this until the damage was done. The amount due was paid out through a payment plan my father set up with the company but my credit report has been a disaster ever since. I am now 30 years old and have never enjoyed an interest rate less than double digits. Can my credit report reflect this nonpayment since 1.) I was a minor at the time the contract was signed and 2.) The bills and notices were not sent to me? If I in fact have no legal recourse, then is there a way to clean up my report or a time frame when the information would no longer be used to affect my credit?