Ink by Chase Sends 10 Year Old A Credit Card Application – For Her Business?

28 Mar Ink by Chase Sends 10 Year Old A Credit Card Application – For Her Business?

In Saturday’s mail, my 10 year old daughter received a credit card application from “Ink from Chase“. At first I was a bit shocked by a credit card company’s decision to send a credit card application to a 10 year old child. I immediately thought: What a bunch of idiots? Are they that desperate? Do they really believe that a 10 year old is responsible enough to handle a credit card? How could they be so stupid?

But, then my logical side kicked in and I thought: You know what, Chase has many brilliant people working in its banks, and their CEO, Jamie Dimon, recently received a $16 million dollar compensation package. My logical side said: Any bank that made 11.9 billion dollars in profits in 2009 has many smart people and they obviously wouldn’t make a silly mistake like sending a little girl a credit card application.

So, I decided to give the matter the attention that it deserved and try to figure out what they knew and what I was missing. Obviously, if “Ink by Chase” thought enough about my daughter’s potential to handle credit, there must be something to this. A company as big as Chase must have done their homework on my daughter to make the decision to offer her a creditcard. Right???

So, I reviewed the materials and this is what I found. Chase sent her an application for a business credit card not a consumer card. Oh, that is apples and oranges compared to my first thought. At first, I thought Chase was treating my daughter as one of the masses by sending out credit card solicitations willy nilly. Boy was I wrong. This was not just a solicitation for a consumer credit card, no way, this card was designed to help business owners. Although she is quite enterprising at an early age, I am still wondering how Chase knows now that she is going to be opening a business soon, and that she will need access to capital. I don’t know how they knew it, but I am sure glad that they are watching out for little girls like her across the country.

This card was designed to meet the changing needs of today’s business owners. The people at INK are inspired by business owners who can turn ideas and dreams into reality. They are equally inspired by how business owners who overcome the unpredictable highs and lows of owning a business. Ink is designed to help her manage and build her business with business tools that they will place at her fingertips and reward points and free cards for her employees.

I would like to think that my 10 year old is a pretty responsible child. Not only is she the sweetest child in the world, she does her homework, receives excellent grades, plays the guitar and saves her money in a piggy bank. So far, I think that Chase has made a great decision to invest in her future by taking a risk on the money it will provide to her business.

Let’s talk about Chase’s risk. I’m assuming that Chase’s decision to open a credit line for her was done with the intention of them making a few dollars for the risk associated with the transaction. there is no annual fee for the first year. Ok, but the $95.00 thereafter is a pretty steep investment for a business person who hasn’t opened shop yet.

The default interest rate is only 29.99%. Hmmm. I wonder why Chase thinks that when a business runs into trouble with cash-flow, the best decision is to raise the interest rate to 29.99%. I didn’t see this little tid bit of information in the pricing and terms buried on the website. I’m guessing that this interest rate will go back down as soon as the person brings the account current. That is only fair, right? I couldn’t find this on the website either. I guess we will just have to trust them.

Also, why do they call it a business card if the person signing it has to be personally responsible for the card if the business can’t pay for it. Can a 10 year old sign a personal guarantee? Not in Florida. But, I’m sure Chase has thought of this as well.

So, I did a little more digging because I remember reading something about the Credit Card Accountability Responsibility and Disclosure Act of 2009. This is the law where Congress decided that individual consumers needed protection and financial disclosure from the credit card companies who seek to prey on them. As I recall, credit card companies can escape this law by disguising its cards as small business credit cards. Oh, so this may be a reason that Chase is looking to help out so many individuals with business credit cards, even 10 year olds. No, Chase is really looking out for her best interests. Remember, they said that they were inspired by her.

While I agree with Chase’s decision to support the youth of this Country. My 10 year old daughter and I are not willing to assume the risk that her business will be able to survive the rigorous demands of her credit card company. At this point in time, we are going to have to pass on Chase’s very generous offer. I think I will have my daughter write a letter to Mr. Dimon to Thank him for his attention to detail and his willingness to help out the future business owners of this country.

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Carmen Dellutri is a proud member of the Florida Bar, and he is a Board Certified Consumer Bankruptcy Attorney, Certified by the American Board of Certification. He practices in the areas of Consumer Bankruptcy and Plaintiff's Personal Injury. He is the principal attorney at The Dellutri Law Group, P.A. The firm supports many charitable and civic causes by donating time and much needed capital to our community. Mr. Dellutri and the other attorneys in the firm routinely speak to students of all ages about various legal and societal issues.
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