Bid to stop drain of credit card providers from Jersey

Tuesday 18 July 2023

Changes to the way credit reference agencies access islanders’ data have been proposed to stop the drain of credit card providers from Jersey.

By early 2024, the Government is aiming to provide credit reference agencies with access to data from its central repository of addresses and contact details of known as the 'People Directory'.

This, they say, will help agencies provide affordability checks and CDD (KYC) checks in accordance with money laundering obligations and will help Islanders obtain loans, credit cards and other sources of credit.

Jersey currently has different sources of data, which has created complications and increased costs for those companies offering the same services to the Jersey market.

Pictured: Deputy Millar said she hoped the change would "remove some of the known hurdles to banks and card service providers."

Deputy Elaine Millar, Assistant Chief Minister with responsibility for financial services, said: "Over the past five years, there has been a withdrawal of credit card providers from Jersey. This proposal is a great step forward and should allow more banks and other financial services providers to offer credit to individuals and businesses in Jersey."

"If enacted, we hope this should remove some of the known hurdles to banks and card service providers offering products such as credit cards. We hope that banks, loan companies and credit card providers will recognise this and provide a full range of services for Islanders."

Carl Walker, Chair of the Jersey Consumer Council, previously explained that islanders had been left frustrated after having their applications for new cards refused when their old ones have expired and their account closed despite having a good credit history.

Mr Walker said the problem had arisen largely because there was no single electoral register, listing all residents in Jersey, which would allow the finance companies to check applications. He warned that the trend could spread to mortgages, loans and other financial services.

Meanwhile, Government has also launched a consultation on new proposals which it says aim to “protect consumers from abusive lending practices and enable them to make well-informed decisions when using credit providers, as well as other credit services such as credit advice, debt collecting, and administration”.

HAVE YOUR SAY...

Islanders can give their views on the proposals for a new way forward for credit reference agencies to access data here.

Starting this week on 20 July, drop-in sessions will be held each Thursday at Jersey Library from 12:00 until 14:00 for anyone wanting to find out more about the proposed 'consumer credit regime' which covers different types of lending and debt collection practices. You can read more or have your say on those proposals here.