Credit companies authorised to discriminate against age

Posted 2007-12-10

High Street banks will be allowed to discriminate in their provision of credit, dependent on age.  Currently older people find it more difficult to obtain credit due to doubts that they will live long enough to pay off the loan.
Former Bank of England executive Mike Young reviewed the Banking Code in early 2007 and recommended an end to credit companies discriminating on the basis of age.  He said:
“The guidance should be amended to ban credit rejection simply on the grounds of reaching a certain age.”
However, The British Banking Association (BBA) decided not to take this recommendation on board. Director of Retail Banking at the BBA, Eric Leenders said:
“The banks feel they should be able to make commercial decisions and take account of factors they might feel are relevant – and one of the factors could be age.”
Young’s review recommended more transparency on loans and saving products, along with more diligence from banks when selling products to people who represent a credit risk.  Consumer groups criticised the review for not taking stronger measures against matters such as bank charges.

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