Age Discrimination in Bank Loans to Continue
Older Britons seeking credit from banks often encounter problems as banks weigh whether they will live long enough to repay the debt. The BBC reports that the right of banks to consider age in offering loans has been upheld.
Earlier this year, Mike Young, a banking consultant and former executive with the Bank of England, reviewed possible revisions to the Banking Code and recommended putting a stop to age discrimination.
He suggested that guidelines should be rewritten to reject discrimination against borrowers simply on the basis of age.
A representative of the British Banking Association disagreed, saying that this provision in the code should remain as it is.
According to Eric Leenders, Director of Retail Banking at the BBA, bankers want to be able to consider any factor that might make a difference, including the age of the borrower.
Consumer groups criticized Mr. Young’s review of the Code, which was published last month, urging a tougher stance on measures such as bank charges. Mr. Young recommended greater clarity on loans and savings accounts and greater accountability on the part of banks for customers who represent a credit risk.