Kids' credit card sparks debate
Friday, January 27, 2006
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The credit cards, backed by MasterCard, allow children from the age of 13 to buy goods over the internet or in shops around the country.
However, the credit cards, in association with magazines Smash Hits! and Bliss, come with a host of charges. A £9.95 fee is payable initially to get a children's credit card, followed by further charges of £4.99 to upgrade or replace the card and another charge every time a pin is used.
"There is a risk that as parents are charging up these cards, children could get used to using plastic and spending money that isn't their own," said a spokesperson for the National Consumer Council to the Press Association.
Bluecorner has retaliated to these concerns, saying that its prepay card is the safest way for children to have and spend money.
"My 13 year-old daughter has three choices: carry cash and run the risk of getting mugged, carry a solo card, which I've tried and she went £200 overdrawn, or carry our card," chief executive Mark Kennedy said to Reuters.
"With ours she cannot go overdrawn and she's less likely to get mugged. What else do kids do?"
The prepay system is already tried and trusted in the US, where it is now a widespread service.
Find credit card offers here:
http://www.europinions-finance.co.uk/credit-cards/credit-cards/
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