The Government of Jersey has opened a consultation on guidance for consumers who have or are considering borrowing, as well as the providers of credit and related services during Covid-19.
The guidance, from Assistant Minister for External Relations with responsibility for financial services, Connétable Richard Buchanan, outlines appropriate steps that businesses and their customers should take when people are facing financial difficulty.
The guidance will cover:
- Lending to consumers
- Loan brokerage or referral
- Debt counselling
- Debt collection
Assistant Minister for External Relations, Connétable Richard Buchanan, said: “The impact of COVID-19 makes it more important than ever for credit providers to work with customers who are facing financial difficulties.
“It has been reassuring to see that many businesses providing credit have publicised the measures that they will take to support Islanders. This assures those facing financial difficulties that support is available, and that talking to the business should be the best way to make sure that a sensible payment plan can be agreed.
“This draft guidance outlines appropriate steps that both consumers and businesses can take to ensure that those facing financial difficulty are supported. It builds on the market standards that have emerged as well as Jersey laws and voluntary codes.
“I encourage those with views to provide feedback, which I will consider before finalising the guidance. How the market responds will be considered with a view to developing formal regulation of the credit sector.”
Government of Jersey News Release.