10 December 2007
The right of high street banks to practice age discrimination in their provision of credit has been upheld, the BBC reports.
Currently, older people find it tougher to gain credit from banks due to doubts as to whether they will live long enough to pay off loans offered.
Banking Consultant and former Bank of England executive Mike Young conducted a review of potential changes to the Banking Code earlier this year and recommended an end to the discrimination.
He said: "The guidance should be amended to ban credit rejection simply on the grounds of reaching a certain age."
Despite this, a representative of the British Banking Association (BBA) told the broadcaster that the Code should remain unchanged on this matter.
"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," Director of Retail Banking at the BBA, Eric Leenders, said.
Mr Young's review of the Code was published last month, recommending greater clarity on loans and savings accounts, along with a more responsible attitude towards customers who represent a credit risk from banks.
It was criticised by consumer groups for its perceived lack of tough measures on matters such as bank charges, however.
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