Jersey's Financial Services Unit launches consultation on secondary consumer credit legislation and a two-tier supervisory framework

Jersey's Financial Services Unit has opened a public consultation on proposed secondary consumer credit legislation designed to provide clearer and more consistent consumer credit protections. The reforms are intended to support recent amendments to the Financial Services (Jersey) Law 1998 and respond to increased use of credit alongside concerns about affordability, transparency of charges, contract clarity and debt collection practices. The consultation proposes to define which activities require authorisation, introduce exemptions for low-risk or ancillary services, set conduct standards for lenders and credit service providers, and strengthen statutory rules for debt collectors. The proposals would operate as a two-tier system distinguishing between firms requiring authorisation by the Jersey Financial Services Commission and firms supervised by Trading Standards under the Wider Consumer Credit Regulations, with Trading Standards supervising all debt collection with no exemptions. The regulated activity set includes lending, advising, credit broking, debt adjusting, debt counselling, debt administration and debt collection. The consultation remains open until 29 May, with public drop-in sessions planned for the following month.