Consumer Lending – Code of Practice
The Code of Practice for Consumer Lending
This is a voluntary Code of Practice that aims to:
- Make sure that Jersey consumers are fully aware of and understand the terms under which they borrow money;
- Make sure that Jersey lenders, brokers, and financial advisers get the right information about borrowers so that they do not loan money if the person borrowing won’t be able to pay it back; and
- Helps to promote and encourage sensible lending.
When does it apply?
The Code applies where Jersey consumers enter into a formal agreement including personal loans, mortgages, hire purchase agreements and overdrafts. The people who sign up to it will abide by the Code’s standards about lending arranged through a third party, whether that third party has signed up to the Code or not.
The Code of Practice does not apply to money borrowed for business or if the sum to be borrowed is £500.00 or less.
The Code and the list of subscribers is kept up to date on the Trading Standards website.