Senior citizens angered over age discrimination by banks
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Thu, 21 Aug 2008 10:37:50 GMT |
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Stockholm - Swedish senior citizens have reacted angrily after a newspaper disclosed that several banks have upper age limits for loans or credit cards. Online and telephone niche bank Ikano bank is one of the banks that has an upper age limit for loans, the Dagens Nyheter newspaper said Thursday in a second article in a series on banking. Ironically, the bank is controlled by 82-year-old Ingvar Kamprad, founder of furniture retail giant Ikea and listed as one of the world's richest men. At his age, Kamprad would not be approved for a loan, the head of Ikano bank Sweden, Stefan Nyrinder, told Dagens Nyheter. The bank offers loans of up to 350,000 kronor (55,000 dollars) without security - but only for citizens aged 18 to 70. "Since the loans run for up to 12 years there is need for a limit on how long you are expected to live. Seventy is an adequate limit," Nyrinder said. Dagens Nyheter also noted that Citibank of the US does not issue credit cards to people above age 75. The group's head of Swedish customer services said it was not possible to determine how long people will live beyond that age. Discrimination Ombudsman Katri Linna and PRO, an organization that groups some 400,000 senior citizens in Sweden, questioned the policies. Linna said there were "many stereotyped risk assessments" that could be regarded as discriminatory, and hoped Sweden would follow Canada's example in abolishing such procedures.
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Age limit on lending....
By:
Paulette ,
Wed, 10 Sep 2008 04:44:27 GMT
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I think there should be an age limit when it comes to who can mortgage or take a loan out. Why would you give an 81 yr old woman a 20 yr loan. She'll be a 100 yrs when its paid off, if she makes it to a 100, probably won't.
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Consolation prize for over age seniors
By:
lomamonster ,
Fri, 22 Aug 2008 10:12:11 GMT
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Swedish bankers should at least turn out the failed loan applicants with a free case of "Solyent Green" to ease the pain of being turned down!
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Seniors denied credit cards
By:
Jim in Vietnam ,
Fri, 22 Aug 2008 08:17:51 GMT
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I am against discriminating against the elderly, but denying the elderly credit cards may just be a "left-handed blessing." I have a close relative who, at 86 years of age, ran up over $50,000 in debt on her credit cards. Her children, who manage her finances, knew nothing of this.
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What, exactly, is the problem here?
By:
AnnJo ,
Fri, 22 Aug 2008 02:32:43 GMT
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If a bank is stupid to deny credit to seniors, the bank will pay the price in lost business and as long as the government doesn't get in the way, someone else will open a bank to serve those customers.
If the bank is smart to deny credit to someone, then unless you are a stockholder, what right do you have to tell the bank it should behave stupidly?
If you don't like the lending practices you see around you, find a bank that does it otherwise and buy their stock, or start your own bank.
Is there no room for some tolerance of differences of opinion on who makes a good credit risk? Does everybody really HAVE to be forced to accept the same views?
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age discrimination
By:
chuck ,
Fri, 22 Aug 2008 02:02:10 GMT
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So I guess opponents of this rule want all senior citizens to be able to take out a $55,000 loan without any possibility of paying it back? This is insanity! This would be nothing more than another form of income redistribution in the name of "nondiscrimination."
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Karma
By:
robert miers ,
Fri, 22 Aug 2008 00:36:19 GMT
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What goes around comes around. Ya don't like and trust the generation who gave your sorry bung a chance to get rich? Fine!! It won't be long before you are lying in a bed...alone..cept for folks who will get your money...remember this..you cold hearted bankrupt slug
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How much risk is too much?
By:
Evana ,
Fri, 22 Aug 2008 00:26:55 GMT
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Would it be discrimination to not give a loan to an unemployed individual? Also, would that person be more likely to repay the loan as apposed to an aged borrower? It seems to me that both loans would entail a great deal of risk. I suspect that this level of risk may be the deciding factor. A line must be drawn somewhere.
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Ancients
By:
jMan ,
Fri, 22 Aug 2008 00:19:38 GMT
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More attacks on geezerdom. What's this woild comin' to?
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New ways of alleging Discrimination
By:
BSR ,
Thu, 21 Aug 2008 23:19:10 GMT
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Dear Old Git,
"No, old people don't die more often than other people. Everyone dies only once."
Then why do insurers charge older people more to buy policies (life, health, auto etc.,)?
Is that also discrimination? So, anytime, anyone uses actuarial science & data to factor cost of risk, it becomes "Age Discrimination".
Not hiring someone who doesn't know how to do the job = "Ability based Discrimination"
Not admitting a weak student = "Merit based Discrimination"
Army doesn't hire old folks = "Age Discrimination"
Men do not want to marry ugly women (and vice versa) = "Beauty based Discrimination"
People move away from smelly people = "Odor based Discrimination"
People don't like to eat bad tasting food = "Taste based Discrimination"
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Old people spend their money on...
By:
El-Kris-O ,
Thu, 21 Aug 2008 22:02:02 GMT
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Black licorice, horehound candy and ginger ale.
Letting a extreme senior citizen loose on a credit card would cause a massive surge in these products purchases, causing an extreme shortage..
We couldn't have that now can we?
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CredCards
By:
Karen James ,
Thu, 21 Aug 2008 21:00:40 GMT
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Well, I will bet a few elders have gotten new cards, then run up the entire amount, then pass away without paying it off. I do not like elder discrimination however. What they should do is provide a secured card with a 1000 dollar limit. Like I have.
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Denied credit cards for seniors
By:
Jack ,
Thu, 21 Aug 2008 20:17:49 GMT
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This is not just an issue in Sweden. Here in CanadaI have been denied a credit card from President's choice bank because I have paid cash for all my purchases since my retirement 25 years ago! I own my house and have absolutely no debts. Discrimmination run rampat!
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Old Folks
By:
Old Git ,
Thu, 21 Aug 2008 18:02:20 GMT
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Dear Doug,
No, old people don't die more often than other people. Everyone dies only once.
Dear Jason,
Please name one person who is not capable of keeling over tomorrow.
Given the spread between the banks' cost of funds and the interest and fees charged on consumer loans, the risk of default due to death of the debtor is an insignificant amount. Many lenders also require borrowers to pay an insurance premium for credit life cover anyway.
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Seniors angered over age discrimination -banks
By:
Art Z immerman ,
Thu, 21 Aug 2008 16:41:21 GMT
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Bet President made them do it!
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Senior citizens angered over age discrimination by banks
By:
Jon Iscream ,
Thu, 21 Aug 2008 15:43:04 GMT
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Bank policies are usually inane. We recently bought a car and they gave us a lower interest rate if I wasn't on the loan. They 'thought' that my wife has a better credit rating. There is no way that my wife can pay for that car. If I die or we are divorced they are going to eat whatever the difference there is between the loan and the equity. It makes sense not to make a loan to someone that is likely to die before the loan is paid. What banks 'do' hasn't been make much sense lately.
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Limits for Loans and Credit Cards
By:
Robert Smith ,
Thu, 21 Aug 2008 14:37:33 GMT
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A better business practice would be to eliminate loans and credit cards for those without clearly documented means to pay them off.
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not credit risk but death risk
By:
banker ,
Thu, 21 Aug 2008 14:02:16 GMT
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The reason is not that you will default on the loan due to credit reasons, but that you will die. On the other side, wouldn't a similar article rebuke banks for charging higher APR for the increased risk of non-payment?
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Questioning the policy???
By:
Jason ,
Thu, 21 Aug 2008 13:33:13 GMT
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I understand how it's a hard pill to swallow, but it is not a smart business move to issue credit to someone who could keel over and die tomorrow. For all those who disagree, do you know who ends up paying? That's right, you do! You pay for those defaulted loans with higher fees/rates. You pay for those credit card balances that have to be written off with higher fees/rates.
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Discrimination or Credit Risk Assessment
By:
Doug ,
Thu, 21 Aug 2008 13:12:21 GMT
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This will sound bad, and I may be vilified, but it seems to me that with banks suffering from liquidity crises, this is the banks way of assuring they don't overextend their credit lines, and can ensure a return on their loans. Old people die more often than young people, right? Banks just want to be paid.
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