The aim of the review of the Consumer Credit Act is to put in place a Consumer Credit law that will be simple, provides clear rules for credit providers and is implementable.

This was highlighted by the permanent secretary for Industry, Trade and Tourism, Shaheen Ali at the review of the Consumer Credit Act workshop held at the Grand Pacific Hotel yesterday.

A cross section of stakeholders took part in this workshop.

Mr Ali said the Act came in to effect in 1999.

He said it has been noted that over the years a number of complaints have been received in relation to credit provision.

Mr Ali said the implementation of the Act has been difficult due to the onerous provisions of the Act.

“The Ministry has seen the need to review the Act. Firstly, to provide adequate protection to consumers in this evolving world of consumer credit, through the provision of clearly defined redress process,” he said.

“In addition, the Act needs to provide clear rules for the credit providers to allow for a fair and level playing field in the industry, which encourages commerce and business.

“With the growing consumer confidence and increasingly competitive financial sector, that is introducing more credit products, the use of credit facilities is becoming wider and at the same time essential when making large capital purchases.”

In order to cover all aspects of credit provision, Mr Ali added they ensured to undertake extensive consultations, that is, meeting with not only consumer representatives, but also commercial banks and other credit providers.

“We want the revised Consumer Credit law to be on par with international best practices and standards.

According to Mr Ali, following yesterday’s workshop, the consultant will undertake the drafting of the consumer credit law.

“The next opportunity that you will have to contribute to the process will be in early November when the first draft of the law will be brought for stakeholder consultations.”

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