Consumer credit regulation

​​​​A consumer credit regime is being prepared by the Government.

It will bring lending and related activities under the supervision of the Jersey Financial Services Commission (JFSC) and Trading Standards. 

The aim is to align Jersey with international best practices and ensure market integrity while safeguarding access to credit and protecting consumers in Jersey. 

​Scope of the planned consumer credit regulation

The regulatory framework will apply to: 

• consumer credit agreements, hire purchase agreements, conditional sale agreement and secured lending arrangements (such as mortgages), with pawnbroking to be included later
  
• activities including lending, advising, broking, debt adjusting, counselling and administration

​​A two-tier approach is being introduced to ensure proportionate and effective regulation: 

• ​Tier 1: lower risk credit activities supervised by Trading Standards
• Tier 2: higher risk and more complicated credit activities supervised by the JFSC

Exemptions from the regulation

Exemptions will apply in various circumstances, including but not limited to: 

• certain professional services
• private lenders
• overseas firms (UK, Guernsey)
  

High net worth individuals (HNWIs) will have the ability to opt out of some of the protections offered by the consumer credit regime.

Buy now pay later (BNPL) is currently out of scope, pending further developments in UK regulation.

Industry responsibilities

​Firms will be expected to register with the JFSC under a new class of business.

They must adhere to principles of integrity, transparency and fair treatment, ensuring systems and staff are prepared for compliance.

Codes of Practice will be issued by the JFSC, for regulated persons.

S​​upport and engagement

There will be support and engagement as we develop and implement the consumer credit regime.

There will be:

• workshops and outreach for ind​ustry
• response papers and updates published regularly
• consumer education campaign

To register interest in upcoming consultations and queries, email economy@gov.​je.

Consumer credit regulation: current position

Key consultations have taken place to shape the consumer credit regime: 

• an initial consultation was held in 2023
• there was direct engagement with industry throughout 2024, which helped to determine the decision to implement the regime as a single framework rather than in stages
• primary law consultations was held at the end of 2024
• The Financial Services (Amendment) (Jersey) Law was adopted by the States of Jersey on 9 July 2025 and is currently pending Privy Council approval, anticipated in November 2025
• ongoing engagement continues through informal discussions and briefings with industry stakeholders, helping to inform the scope and approach​

​Consumer credit re​​gulation: ​​next steps

A public consultation on secondary legislation is scheduled to begin imminently. It's expected to focus on the draft Regulations and Orders necessary to implement the regime. 

These include provisions relating to: 

• ​the disclosure of information to borrowers
• unfair terms
• annual percentage rates
• total cost of credit, licensing, exemptions and operational requirements for those engaging in consumer credit business with borrowers
  

The next planned steps are:

• H1 2026: JFSC Code of Practice consultation
• Sept 2026: target lodging date for regulations 
• November 2026: target date for States Assembly debate on regulations 
• Late 2026: commencement, with 12 month transition period​