Minors to Pay Back Paypal Debts : Policies, Responsiblities, and Legalities on the Issue

In 1998, Ken Howery, Luke Nosek, Max Levchin and Peter Thiel created online software that could be used by the people to do online banking from all over the world by using their individually owned device. They aimed to make this software secure and safe to be used. To make sure that the standards set by creators are maintained, it was important to make strict rules and regulations. Not just it would ensure high-quality software, but it will also ensure the safety of both, authorities and customers. The strict rule helped the software in prospering by staying safe from fraud and scam. Today, it has been over 20 years, and the software is famous all over the world including every continent, every country.

The software that we are talking about is none other than PayPal ! So far, so best! It is by far one of the most trusted banking software that is used to make online transactions as well as payments all around the globe in the safest way possible.

Here is a video tutorial of setting up a PayPal account:

How does PayPal keep up with its Debt Collections?

Since PayPal is online banking software, it keeps up with its debt collection just like any other bank. However, many people find it confusing to understand how PayPal works like online banking software. If you are also one of those people and have queries about PayPal and its terms and conditions related to minor accounts, keep reading this guide until the end!

In this guide, we are going to tell you all that you need to know about PayPal and its terms and conditions towards minors' accounts!

Like always, let's start with the basic information that is important for you to know for a better insight into this matter!

Does PayPal Offer Accounts to Minors?

Does PayPal Offer Accounts to Minors?
Does PayPal Offer Accounts to Minors?

Before moving to the debt on minors, it is important for you to know whether PayPal even offers an independent account to minors or not.

Back in the time, PayPal used to offer bank accounts to students, teenagers, and minors. However, this offer didn't last long enough. Now, PayPal offers accounts to minors but under the supervision of an adult who would be held accountable for all the purchases and transactions on behalf of the respective minor.

There are numerous, essential formalities and paper-work that the adult (guardian) has to perform before signing-up. This way, the adult becomes legally responsible for each act made by using the respective account.

What are the Policies for Opening a PayPal Account?

Before signing up for an account in PayPal or any other bank, it is very important to go through the policies. Opening an account in PayPal comes with a heavy amount of paper-work that you have to do including assisted and testified personal documents.

Below, we have mentioned a list of the main policies set by PayPal for opening an account. This is so that you will able to understand the situation in a better way!

Residential Country

You are eligible to open an account from the country that you are living in.

Age Restriction

You should be 18 or above to be eligible for holding an account in PayPal. If not, you have to find yourself an adult who will be held liable for every action taken by using your account in the future.


It doesn't matter if you are using a minor account or not, you are liable to pay the account debt as soon as you can. Otherwise, you would have to deal with high risks and difficulties.

In case of any fraud or scam, legal action will be taken against the account holder. Not just that, but if the debts will not be paid on time, very serious actions can be taken against the liable person. The liable person can even be charged with criminal charges.

What is the Role of Collection Agency in PayPal Debts?

PayPal doesn't collect the owed debts by itself. Instead of it, PayPal has collaborated with a collection agency that does the collection for PayPal. For example, if you open an account and you get drowned in the sea of debts, you will no longer be owing a debt to PayPal itself. Instead, you will owe the debt to the collection agency. It would be their duty to remind you of your liability by sending you follow-ups, legal notices, and etc. Not just that, but if you ever fail them, you can be charged with severe charges of disobeying law and order.

However, you can pay the debt check to PayPal and get rid of the continuous, bothering follow-ups and legal notices sent to you by the collection agency.

What are PayPal's Fees?

PayPal's fees vary in the region that the account is from. Compared to other banking software, PayPal is very affordable and reliable. You can trust PayPal with not charging you extra or hidden charges. There is no sign-up fee; there is no cancellation fee either. If any of your customers are using a PayPal account as a payment method, none of you will be charged with fees for that.

Why are Certain Payments Delayed?

It is possible to face a delay in your payment via PayPal, but remember, there is nothing to worry about! Since it is a software, the users are mostly using a card to make transactions, and etc. It is very important to ensure their safety and prevention from any kind of fraud and scam. Not just the receiver, but the sender of payment is equally important and valuable for PayPal. It takes time to go through each safety measure. This is why you might face certain delays in receiving payment. All that you need to do is have some patience.

How does PayPal Deal with a Minor's Debt?

The rules are the same for everyone! You must have come across many news regarding legal actions taken against adult account holders, but there is very little news about minors being charged for not paying their debt on time. However, to make it easier for you to understand, we have mentioned some simple and important points regarding this question, below:

· Age doesn't matter! Each and every account holder is liable to pay the debt they owe!

· If a minor owes a debt to the company, their guardian who signed up for their account will be held responsible.

· Lying about your age is a crime! If you opened your account by lying about your age and submitting forged documents, then you will be charged with criminal charges which can later become a very serious issue for you!

· If the minor (account holder) has committed any crime or fraud, they will have to deal with criminal charges regardless of their age. The greater the crime, the greater the criminal charges!

· However, there is a very low chance of a minor coming across such situations.

How to Pay the Minor's Debt?

As low as the chances are to be under the mentioned situations as a minor, it might get really hectic for the respective person to deal with such a situation. This is why we have gathered some practical and mature ways of dealing with such a situation!

Write a Letter

If you ever find yourself under such circumstances, don't hesitate in writing a formal letter to the debt collector. In the letter, explain your situation thoroughly, and ask for leniency.

Document Proofs

Submit the testified documents as proof of your age and information that you provided at the time of opening the account.

Fair Debt Collection Practices Act

Try submitting all documents and letters within 30 days of the first follow-up. Make sure that you do it in accordance with the Fair Debt Collection Practices Act.

Take Guidance

After reviewing your application that describes the scenario, the collector will guide you through the process of dealing with your poor situation in the best legal way possible. Don't hesitate in taking the advice!

After taking mature steps, you will be more likely to receive less legal notices from the debt-collecting agency.

Pay the Debt

The most efficient and wise way of dealing with any such situation is to pay the debt as soon as possible. Hence, try your best to get rid of the debt collecting agency and their notices by paying the debt once and for all!

Here is a video guide to paying the debt as fast as possible:

Conclusion ofMinors to Pay Paypal Back

If we tell you the conclusion of this guide, it is that don't lie about your age, don't commit any crime related to fraud. Otherwise, you can get yourself in serious trouble that is likely to be never-ending.

It doesn't matter if you are a minor, you will be held accountable for your actions, and you are liable to pay your debt. In such a scenario, your guardian will be notified of all the legal notices.

If you found this article helpful in understanding how PayPal deals with the minors' accounts and debts, give us a thumbs-up and don't forget to share the link to this guide with your friends and family!

Thank you so much! Happy banking!

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