CAC to Begin Consultations on Draft Microcredit Code of Conduct This September

• The Consumer Affairs Commission (CAC) will begin consultations this September on the draft Code of Conduct for microcredit institutions. The Code will govern the conduct of microcredit licensees in consumer-related matters, addressing issues such as predatory lending and unethical practices within the sector.
• It will also outline minimum customer service standards to ensure transparency, fairness, and accountability across the industry. Chief Executive Officer (CEO) of the CAC, Dolsie Allen, highlighted that the Code of Conduct will foster a transparent, ethical, and responsible microcredit sector – one that protects borrowers and strengthens the industry as a whole.
• She noted that the CAC has been designated under the Microcredit Act as the agency responsible for investigating and resolving complaints brought by consumers against microcredit institutions.
• Mrs. Allen emphasised that heightened regulation is especially important, given the exponential growth of the microcredit sector and the emergence of deceptive lending practices.
• The microcredit sector is regulated by the Bank of Jamaica (BOJ), which serves as the administrator of the Microcredit Act and is responsible for licensing and supervising microcredit institutions.

(Source: JIS)