The Consumer Affairs Commission, CAC, says a Code of Conduct has been drafted to govern how microcredit institutions, MCIs, should operate under the Microcredit Act.
The Microcredit Act, passed in 2021, will take effect in July.
The Act aims to formulate procedures for the licensing and regulation of MCIs that provide financing to individuals and operators in the micro, small and medium-sized enterprises, MSMEs, sector.
The CAC was named in the Microcredit Act as the agency responsible for investigating and handling all complaints made by consumers against MCIs.
Chief Executive Officer, CAC, Dolsie Allen says the draft Code of Conduct has been submitted for review to the Bank of Jamaica, BOJ, which has the regulatory responsibility for the Act.
She says the code of conduct, when finalised, will include the name, occupation and place of residence of the borrower.
It will also include the business of the parties, the date on which the loan was made and disbursed, the loan amount, the terms of repayment and interest rate charges.
Ms Allen also noted that the intention of the Code of Conduct is to minimise disputes.