Consumer Credit Regime: legislative amendments

About the consultation

We want to protect consumers from abusive lending practices and enable them to make well-informed decisions when using credit providers and other credit services such as:

• credit advice
• debt collecting
• administration

We also want to:

• give clarity to businesses that will be regulated under the proposed regime
  
• ensure that the regime is practicable to implement
  
• make sure the regime is compatible with existing regulatory requirements in neighbouring British jurisdictions
  

The proposals for a new consumer credit regime have undergone significant change following:

• an initial consultation on the proposed draft Law​ in the summer of 2023 on Consumer Credit Regime
• a period of direct engagement with industry throughout 2024
  

​Main proposed changes

A number of changes have been made in response to the previous consultation.

The key changes are:

• by way of reminder, the proposals envisage supervision by the Jersey Financial Services Commission (JFSC) of those regulated persons carrying out consumer credit business. Consumer credit business is defined within the scope of the proposed regulated activities. However, certain activities which might otherwise fall within scope of the regime are in fact the subject of specific exemptions, as set out below
  
• the definition of 'consumer' has been refined to provide protections for retail and personal lending only. All lending to small business and micro-enterprise has been removed. High-net-worth-individuals (HNWIs) have been given the option as to whether or not to exclude themselves f​rom the protections of the regime
• the definition of 'consumer credit agreement' has also been refined to clarify that only unsecured credit is caught
  

​​Regulated activities

The activities that will be in scope of the regulatory regime are:

1. entering into regulated agreements and arrangements
2. exercising, performing or obtaining rights or duties under regulated agreements or arrangements
3. advising on regulated agreements and arrangements
4. credit broking, inclusive of
• introducing parties in respect of regulated agreements and arrangements
• presenting or offering regulated agreements or arrangements
• assisting another person to enter into regulated agreements or arrangements
• entering into regulated agreements or arrangements on behalf of a credit provider
5. debt adjusting, inclusive of:
• ​​​negotiating with a credit provider on behalf of a borrower
• taking over payments to discharge a debt on behalf of a borrower
• liquidation of a debt on behalf of a borrower
6. debt counselling
7. debt administration, inclusive of:
• ​​performance of duties on behalf of a lender/borrower (excluding debt collection)
• exercising rights on behalf of a lender/owner (excluding debt collection)
  

Pure debt collection is no longer in the scope of the draft Law. Instead, separate Debt Collection Regulations will be issued under Article 31A of the draft Law (to be consulted upon later). Trading Standards and the Channel Islands Financial Ombudsman will have responsibility to ensure these are complied with.

The activities of administration and arranging have been wrapped up into credit broking.

Those who carry out, by way of business, the activities set out at 1 to 7 above will be considered to be consumer credit businesses for the purposes of the draft Law and will be required to register with the JFSC, unless specifically exempted from doing so.

Consultation paper​

Consumer Credit Regime: Consultation on proposed changes to draft Financial Services (Jersey) Amendment Law 202-​

This consultation paper should be read alongside the proposed draft law:

Draft Financial Services (Jersey) Amendment Law 202-
​Draft Financial Services (Jersey) Amendment Law 202- Explanatory Note​

Public meeting dates

​We particularly want to hear from:

• ​motor traders
• retailers that offer credit to consumers
  
• non-bank and private lenders who might fall outside of the proposed exemption and thus who will be caught by the consumer credit regime
  

We would like to engage with you directly. Email economy@gov.je quoting Consumer Credit Regime Consultation if you think you may fall into any of these categories.

How to submit comments to the consultation

You can ​send your comments to economy@gov.je with a subject line 'Consumer Credit Regime Consultation'.

​Data Protection​​

The information you provide will be processed in compliance with the Data Protection (Jersey) Law 2018. 

Find more information in the Department for the Economy Privacy Notice.
The Government of Jersey may quote or publish responses to this consultation but will not publish the name and addresses of individuals without consent. 

Types of publishing may include:

• sending to other interested parties on request
• sending to the Scrutiny Office
• quoting in a published report
• reporting in the media
• publishing on the Government website
• listing on a consultation summary

Confidential responses will still be included in any summary of statistical information received and views expressed.

Under the Freedom of Information (Jersey) Law 2011, information submitted to this consultation may be released if a Freedom of Information request requires it, but no personal data may be released.

Child Rights Impact Assessment

The decision to publish the consultation does not have a direct effect on children and young people.