Saturday, September 24, 2011

BANK SAYS NO TO RETIRED CREDIT CARD APPLICANT

The Straits Times 24 Sept. (Click on image to enlarge.)
Familiar? If you are retired, and thinking of applying for a credit card, forget it. Retirees and pensioners in Singapore have long complained that banks practise age discrimination when it comes to approving credit card applications.

Whenever a complaint like this surfaces in the print media, the banks will issue a public statement denying such a discriminatory practice. But the above letter in today's Straits Times (24 Sept) is proof that any denial by banks is merely a PR damage-control exercise.

It is a similar story with banks in Malaysia. The irony is those who default on credit card payment are not retirees. In an article in The Star "Shocking reasons why Malaysians are living beyond their means" (22 Sept), the Federation of Malaysian Consumers Association (FOMCA) discovered that on average 41 Malaysians are declared bankrupt EVERY DAY, mostly due to credit card debts. What's more shocking is most of these defaulters are below 40 years old, and they do not care about the consequences.

Many young people hold multiple credit cards. Banks are ever ready to offer them even more credit cards.
Despite such statistics, banks still discriminate against retirees. They don't welcome people who don't have a fixed income from employment. You can produce a portfolio of all your income-deriving assets and proof of a healthy retirement fund, but banks remain unconvinced.

Well, their loss is our gain. They are helping us spend less on shopping at the malls and saving more for our retirement.
Related article:

Credit card discrimination against retirees

5 comments:

William said...

Sadly because of stringent rules, banks are missing out on this lucrative sector of applicants, the retirees. My question is, are the banks reluctant to give retirees credit cards because of risks related to age? Are there any historic data or evidence to show retirees being reckless with their spending thus chalking up big debts and ending up as bankrupts? Bankers today should know better because they would be retirees themselves tomorrow!

realtor-at-work said...

Bank love you less if you are a prompt paymaster. Bank love/want you, if you pay the minimum payment, good source of income to them

Antares said...

Few things I can think of are more despicable than banks. At least the criminal syndicates are honest about how they earn a few bucks!

old public servant said...

Citibank in Australia refused me point blank without any details being given when I retired a year ago with a defined benefit pension.

old public servant said...

Citibank in Sydney refused all retirees regardless of income.