How To Convert Apple ID to Free iTunes Account

I created an apple id on the apple website for a family member using their email address. Now they want to use that email address/account in iTunes to get free apps on their iPad.
In iTunes I clicked on a free app and logged in using the apple ID when prompted. iTunes store tells me that this apple id hasn't been used before in the iTunes store and asks me to verify the apple id. I follow the steps but when it gets to the details for the account it does not give me the option to select "None" as a payment option (this is a free app afterall) so I cannot progress to finish creating a "free" account.
I also cannot delete the apple ID on the website and start from scratch. Apple holds this data forever it seems.
Is there a way to convert this apple ID to a free iTunes account?

That's the point. A credit card should not be required for free accounts.
I am left now with a situation where I don't have a credit card to enter on the account because it is used on another account. Apple will not allow me to delete the apple ID so I can start from scratch. The "none" payment option does not appear when trying to convert the apple ID to an iTunes account.
So there seem to be no options left except set up a new email account which I don't need. Great usability Apple.

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