Customer protection law comes into effect in 2023
MOVES to improve customer protection in the lending and credit sectors locally will come into effect next year.
The Lending, Credit and Finance law will come into force in 2023 and will introduce an improved and enhanced regulatory regime for businesses involved in providing lending, credit and finance to customers.
‘In some cases people can find themselves in financial situations that cause enormous stress and poor mental health and it’s right we look to put support in place for them, but also it helps to improve customer confidence more widely,’ said Economic Development finance lead Nick Moakes.
‘That is good for the reputation of the sector, Guernsey as a jurisdiction and, ultimately, the economy as a whole. We hope these measures both contribute towards greater protection for consumers, while at the same time being proportionate.’
The States of Guernsey also supported a proposal by Economic Development to introduce Low Value Debt Relief legislation to provide a safety net for islanders who could find themselves in low amounts of debt from personal circumstances in which they have no reasonable way of paying due to limited financial means.
‘When considering writing off a person’s debts there will always be a different view between the two camps – “requirement to pay” versus “right to start again”,’ said Citizens’ Advice Guernsey CEO Annie Ashmead.
‘The LVDR order is a first step in the “right to start again” camp. It will require a material deterioration in personal circumstances to fit the bill. However, unemployment, relationship breakup, demise of a partner, illness and injury can happen to anyone at anytime.
‘We feel that this is a proportionate first step in allowing a small number of individuals to be able to “start again” provided that their total debts are not too high.’
There will be strict eligibility criteria, but the LVDR legislation is hoped to make a real difference to islanders who find themselves in the difficult situation, often as a result of a change in circumstances in their lives.
