Age discrimination - is this correct?

vaiciunas

Hi, I wonder if anyone else has come across this before.

My dear old Mum has been left a substantial amount of money following Dad's death in February and, having a current account at Barclays, wanted to find out about their fixed rate bonds, to save some of the money, but was told that being over 70 she is not eligible for anything longer than one year. Is this correct? Has anyone else heard of this policy before? Thing is she may only want to save for one year, but would be nice to be given the option and see their full range of products.

I called them to query the policy and they said that basically that is correct and that they didn't want to offer anything for someone that old. I asked if it was because they were expecting them to drop dead anytime soon and they said 'yes, that's sort of the reason'!!

Just wondered if anyone else had come across this policy before and if other banks are doing the same - surely not everyone over 70 is ignored in this way.

elsien

I'm fairly sure my grandmother had fixed term bonds that lasted longer then a year when she was in her eighties.
However times change and banks have had claims against them for selling inappropriate long term products to older people so maybe they're been overcautious and have gone too far the other way. Sounds odd though - have they done a full fact find or did you just manage to speak to someone on the desk?
I'd suggest contacting other banks / building societies and see what they say.

vaiciunas

Mum has been with Barclays for years and had popped into talk about ISAs. When the chap looked at her account he offered her a meeting with their financial adviser who was due to get in touch with her.

A week or so went past and she'd heard nothing and so eventually called into the branch again and was told by the financial adviser, in the middle of the bank (poor thing was so embarrassed), that as she was 75 he would not be having a meeting with her as she was not eligible to invest.

After that, I called the head office to query the policy and was told the above. I agree that times have changed but it does seem a bit harsh - she's not quite on her last legs, hope I'm half as good at her age!

chopperharris

Yes they are more likely to want to fleece the old dears on dodgy investments instead.

http://www.thisismoney.co.uk/investing/article.html?in_article_id=483016&in_page_id=166

ChuckCash

chopperharris wrote: »

Yes they are more likely to want to fleece the old dears on dodgy investments instead.

Good article that.

So maybe the age limit is imposed in order to protect the elderly, who are from a genre when banks were more trustworthy and reliable. Of course that's not the reason, but i like to delude myself that it is

dunstonh

Some of the banks and tied advice arms set a restriction on their advisers that they cannot provide regulated investment products or long term advice for those over a certain age.

Tied agent advice is a sales process so the restriction protects potentially vulnerable consumers from being caught in a fairly heavy sales process. However, it does also protect the bank from family members complaining when the investment recommended goes down in value and claiming the parent was too senile to know better.

Onawingandaprayer

Last year, I took out a 2yr Fixed Rate Bond with the Natwest (on my Dad's behalf, under PofA) and he's 95! 6.6%...aah. remember those days...:rotfl:

dunstonh

Dont mix up non regulated products and regulated products. A 2 year bond isnt a bond. Its a fixed term deposit. Its a non regulated product. It doesnt need their sales rep to sell it. Any staff member can do it.

herbertthehelper

chopperharris wrote: »

Yes they are more likely to want to fleece the old dears on dodgy investments instead.

http://www.thisismoney.co.uk/investing/article.html?in_article_id=483016&in_page_id=166

Yes, its best to check stuff like that out as it can be easy to be fleeced!

Noble_Savage

vaiciunas wrote: »

Mum has been with Barclays for years and had popped into talk about ISAs. When the chap looked at her account he offered her a meeting with their financial adviser who was due to get in touch with her.

A week or so went past and she'd heard nothing and so eventually called into the branch again and was told by the financial adviser, in the middle of the bank (poor thing was so embarrassed), that as she was 75 he would not be having a meeting with her as she was not eligible to invest.

After that, I called the head office to query the policy and was told the above. I agree that times have changed but it does seem a bit harsh - she's not quite on her last legs, hope I'm half as good at her age!

To be honest it looks like she's had a lucky escape, if it's one of Barclay's regulated bonds they were talking about!

iblametheparents

There are no age restrictions on the 1 year savings bond, currently at 3%, and the 3 year savings bond, which is paying 4.25% - I'd advise her to ring Telephone Banking - 08457 555 555 and it'll be open in a couple of minutes.

There are restrictions on bonds, etc which are taken through Barclays Financial Planning, the department dealing with regulated investments, etc.