Jersey’s Consumer Credit Regulations and Secondary Legislation Published for Consultation

Jersey Government is seeking the views of consumers and industry on its recently published consumer credit secondary legislation.

This supports the implementation of Jersey’s consumer credit regime. “Consumer Credit Business” was added as a new form of financial services business under the July 2025 amendment to the Financial Services Law.

A key feature of the new regulatory framework is the two‑tier regulatory model:

1. Higher‑risk or complex credit activity supervised by the Jersey Financial Services Commission (JFSC).

2. Lower‑risk activity exempt from JFSC authorisation but subject to Wider Consumer Credit Regulations overseen by Trading Standards.

Four draft Orders/Regulations are under consultation:

Draft Financial Services (Financial Service Business) (Classes) Amendment Order (“Classes Order”)

The Classes Order adds Consumer Credit Business as a prescribed class of financial services business.  It defines the 6 regulated classes of consumer credit business that require JFSC authorisation:

• Providing credit
• Advising on credit
• Credit broking
• Debt adjusting
• Debt counselling
• Debt administration

Draft Financial Services (Consumer Credit Business – Exemptions) Order (“Exemptions Order”)

The Exemptions Order proposes targeted exemptions for low-risk or ancillary activities, including activities carried on by registered charities and certain interest-free and short-term credit arrangements.  However, those that are out of scope may still be subject to the Wider Consumer Credit Regulations (below).

Draft Financial Services (Wider Consumer Credit Business) Regulations 202- (“Wider Consumer Credit Regulations”)

The Wider Consumer Credit Regulations introduce conduct standards for lenders and credit service providers. These include, amongst other things, fair contract terms, pre-contract disclosure (including key information such as the total cost of credit and the annual percentage rate), advertising, affordability and creditworthiness assessments, protections for vulnerable consumers and borrower rights such as cooling off and reflection periods.

Draft Financial Services (Consumer Credit Debt Collection) Regulations (“Debt Collection Regulations”)

The Debt Collection Regulations introduce statutory conduct requirements for debt collectors. These focus on requirements for clear and non-aggressive communication, accurate information, dispute resolution, complaints handling and enforcement, strengthening protections for borrowers experiencing financial difficulty.

Debt collection does not fall within the supervisory perimeter of the JFSC.  It remains within the remit of Jersey Trading Standards, and it is proposed that all activities are subject to the Debt Collection Regulations – with no exemptions.

Next Steps

The consultation invites feedback from both consumers and industry, with submissions accepted until 29 May 2026. The Government has emphasised that the Regulations aim to be fair, transparent and proportionate, balancing consumer protection with the need to avoid unnecessary burdens on smaller credit providers.

Following this consultation, the Government will refine the Regulations before finalising them. The JFSC is expected to consult separately on a Consumer Credit Business Code of Practice in 2026, with supervision to commence in the first half of 2027 (with a 12-month transition period).