Revealed: How High Street bank Lloyds TSB dishes out debit cards to children as young as 11

Lloyds TSB is mailing the cards direct to children as young as 11 without telling their parents.

One 15-year-old boy used his to buy cheap cigarettes, Viagra and a fake adult ID online.

Children as young as 11 are being sent Visa cards through the post, giving them spending power without checks or controls

MPs, consumer groups and parents have reacted with horror. LibDem Treasury spokesman Vince Cable said: 'It is deeply dispiriting. This is clearly motivated by short-term greed.'

In the past, children aged 11 to 15 who hold current accounts were restricted to debit cards that could be used only in cash machines or at bank branches.

The new cards could let them spend large sums on the web, potentially emptying their accounts, without their parents' knowledge.

The cards are Visa-enabled, meaning they can be used anywhere that displays a Visa sign. The bank takes a fee from the retailer every time a card is used.

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.

But the 15-year-old, from South Wales, had no problem buying goods supposedly restricted to adults.

His parents found out only when they received a Customs demand for duty on the cigarettes, which had been bought from a website based overseas.

MAHOOD: 'Erm, could I borrow your debit card tonight, son?'

The boy's father contacted Lloyds TSB, who admitted that other parents had also complained. Dr Cable accused the bank of trying to 'seduce' customers at an early age.

He said: 'We know people are more likely to change their husband or wife than their bank.

'Once banks have got someone hooked, they keep them for most of their lives. This is a way of seducing new customers, but a really irresponsible and dangerous way.

'You would have thought banks might have learned some lessons from their irresponsible lending on credit cards and mortgages.

'But now they seem to be compounding the problems by adopting the grossly irresponsible policy of encouraging youngsters to spend on these debit cards.'

Chris Tapp, director of the money education charity Credit Action, said: 'It goes against common sense for banks to cut parents out of the loop... Parents need to have some control over how children are spending their money.

'Children may be swayed by advertising or other influences to make an impulse buy. Some may end up buying things that are unwise.

'We all know about the monsters that lurk on the internet in terms of the things that you can access with a card.'

Lloyds TSB claimed it was simply falling into line with its rivals.

But most other banks only offer cards to under-16s that allow limited withdrawals from cash machines. These are also sent to parents, rather than direct to children.

Licence to buy: Lloyds TSB have been mailing Visa cards to children as young as 11

Barclays does offer a Visa-enabled card to children of 11 and above, but it requires the written permission of their parent or guardian.

The father of the 15-year-old, who asked not to be named, believes Lloyds TSB is promoting illegal activity.

He said: 'I pointed out to them that by enabling children to purchase goods illegally over the internet, they were aiding and abetting a crime.

'Their response was that it was not down to them to monitor other people's children, and that teenagers who were brought up well would not abuse this facility.

'It was not their policy to inform parents as they would expect the children to do so.'

Lloyds TSB said last night: 'We wrote to customers under the age of 16, who previously had a cash machine card, to let them know they could have a debit card.

'We made it clear that they should let their parents know. Parents or guardians can ask for the cards to be blocked.'

The spokesman defended the fact the bank does not tell parents directly.

He said: 'We don't always have the parents' contact details or know the family's circumstances. There are cases where the child might bank with us but the parent might not.'

The bank could not say how many cards have been sent out but it is thought to be many thousands.

Lloyds TSB claims to have a unique system to stop purchases from adult sites. The spokesman said: 'If the card is used to on certain websites, a Visa flag would come up and the purchase would not go through.'

The bank said web retailers should check customers' ages, adding: 'A debit card is not proof of age. If you are buying alcohol or X-rated videos, there is a duty on the merchant to verify the age of the customer.'

Lloyds TSB said it was willing to investigate how the 15-year-old boy could buy cigarettes, Viagra and a fake ID despite the safeguards.

'We would expect to be able to put a block on those purchases,' the spokesman said.