Lloyds-TSB has been criticised for sending debit cards to children as young as 11 so they can buy goods online without parents knowing.
Lloyds-TSB has been criticised for sending debit cards to children who are as young as 11 so they can buy goods online without their parents knowing.
A father has reportedly complained to the High Street bank after his 15-year-old son used his card to buy cheap cigarettes, Viagra and a fake adult ID online.Children also have been buying drugs and other things online.
In the past, children aged 11 to 15 who hold current accounts were restricted to cards which could be used only in cash machines or at bank branches.
But the new cards are Visa-enabled, meaning they can be used anywhere that displays a Visa sign. The bank posts the cards to youngsters without requiring the parents' permission.
Lloyds-TSB insists it is up to parents to keep a check on how children use the cards and says there are safeguards to ensure they cannot be used on adult websites. Is this true?The bank also claimed it was just trying to compete with other banks, its rivals.
They have started to offer customers under 16 the option to have a debit card. Importantly, they do incorporate restrictions which are unique to Lloyds TSB. The debit card does not allow customers' to go overdrawn and prevents purchases on websites with adult content or gambling sites.
They said "When we wrote to these customers we involved parents; including parental guides in initial correspondence and when the card arrives.
The parents are able to block the card from being used at any time if it is mis-used.
But LibDem Treasury spokesman Vince Cable accused the bank of trying to "seduce" customers at an early age. He said it was "clearly motivated by short-term greed".
So the bank is probably in big trouble!
