Borrowers in Jersey are being asked to give feedback on new standards for those provide loan or credit services designed to offer more protection.
Lenders will be licensed by the Jersey Financial Services Commission and legally required to check borrowers can afford the loan.
There will be rules on loan set up costs, the information given to consumers , interest rates and cooling off periods.
The proposed regulation will cover Jersey mortgages, store cards, hire purchase agreements, overdrafts, buy-now-pay-later loans - and small business loans of up to 30 thousand pounds - but not credit cards.
JFSC licensing will also cover debt collection, credit brokering and credit advice.
Deputy Elaine Millar, Assistant Chief Minister with responsibility for Financial Services, is inviting feedback:
"Almost all of us have, at some point, borrowed money so it is important that we fill the gaps in our current legislation and protect Islanders from poor practices.
This legislation will bring a wide range of business operations under regulation and set minimum standards for them to meet. The intention is not to prevent people from taking on debt, but rather to ensure that consumers and small businesses are properly-informed and protected when they do so.
We also want the businesses and individuals who will be regulated to have clarity about what will be expected of them. We will be aiming to ensure that the regime is practicable to implement and compatible with existing regulatory requirements in neighbouring British jurisdictions."
The consultation is open until September at gov.je/consultations, and there are drop-in sessions:
- Wednesday 12 July (5-6pm) at City Café (Alfonso Café Bath Street) with Portuguese speakers and information
- Thursday 13 July at St Helier Town Hall
• 9.30am to 11am: briefing for businesses
• 11.30am to 1pm: briefing for consumers
• 4.30pm to 6pm: briefing for private lenders
There will also be drop-in sessions between 12pm and 2pm at Jersey Library for all businesses and consumers on the following Thursdays: 20 July, 10, 17, 24 and 31 August.
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