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Older folks will continue to sustain age discrimination by well-heeled banks when seeking credit, the BBC reports.

Banking institutions maintain they should retain executive licence over deciding factors of whether borrows can carry on in a financially sound life - long enough to repay loans.

In opposition is former Bank of England executive and banking consultant Mike Young. After conducting an examination of potential changes to the Banking Code earlier this year he recommended an end to the discrimination.

Mr. Young stated: “The guidance should be amended to ban credit rejection simply on the grounds of reaching a certain age.” His review of the Code was published last month, touting greater clarity on saving and loan accounts, including a more reasonable approach toward customers who may represent a credit risk to banks.

The review was condemned by consumer groups for its professed lack of tough channels on matters such as bank charges.

Supporting the consumership views, a representative of the British Banking Association (BBA) told the BBC that the Code should remain untouched.

Director of Retail Banking at the BBA, Eric Leenders, maintained, “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.”

At a time when lenders scramble for the trustworthiness of their most tried and true borrowers, the practice of excluding the older generation presents a quagmire of reconciliation.

The London Interbank Offered Rate (LIBOR) - the rate at which banks lend unsecured funds to one another - has shown sharp growth. Experts say this is one of the key factors behind a probable cut but which has also led to a return of the critical situation in the credit industry seen during the summer.

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Angela Knight, the British Bankers’ Association (BBA) Chief Executive explained, “People in debt and their creditors need to know that when an Individual Voluntary Arrangement (IVA) is proposed, it is the most appropriate solution.” (more…)

Citizens Advice is now urging Brits to buy wisely and plan spending as its bureaux prepares for a rush of debt enquiries in 2008. (more…)