When i was 16 yrs old i opened a credit card account, i am now 21. They are trying to collect on it. My question is, because i signed a contract when i was 16 can they even collect because i was under the age?
The age of majority in Michigan is 18. MCL 722.52. “After reaching his majority one may disaffirm a contract made by him during infancy and recover what he paid or parted with pursuant to such contract, if he return what he received.” Reynolds v. Garber-Buick
Co., 183 Mich. 157, 162, 149 N.W. 985 (1914). The common law exception to this rule is that a minor can bind himself by contract for “necessaries.” See In re Dzwonkiewicz's Estate, 231 Mich. 165, 167, 203 N.W. 671(1925). In addition, there are several express statutory
exceptions to the common law. See, e.g., MCL 600.1404(2) (educational loans); MCL 600.1403 (willful misrepresentation of age); MCL 500.2205 (life or disability insurance); MCL 333.5127(1) (consent to medical care for a minor infected with venereal disease or HIV); MCL 333.6121(1) (consent to substance abuse related medical care); MCL 333.9132(1) (consent to prenatal and pregnancy related health care).
In your situation, you arguably reaffirmed the contract when you continued to pay on the credit card account until you were 19.
I don't know if there is some idiosyncracy in Michigan law because I don't practice in Michigan. That said, generally, you could have voided the contract before your 18th birthday. You ratified the contract by paying the bill for a year AFTER you had reached the age of majority. The contract cannot be voided.
As a practical matter, if you tell the credit card company that you were a minor at the time, they would have to believe you. You would be telling them that you are a liar, lied on the credit card application, but that you are telling them the truth now. I think they would sue you anyway. The more interesting question is whether it would be dischargeable in bankruptcy. The debt may have been incurred through a fraud, but it was the fraud of a minor. It might be cheaper to just pay the bill than to try and defend a lawsuit.
