NASSAU, BAHAMAS — The government is introducing rules for non-bank money lenders to bring “much needed” consumer protection to that space, according to Economic Affairs Minister Michael Halkitis.
Halkitis during his contribution to the 2022/2023 budget debate said that the “much needed consumer protection” includes protecting borrowers from “predatory lending practices”.
Halkitis was referencing the Financial and Corporate Service Providers (Money Lenders) Rules which he said will come into effect in short order. He noted that the regulations will establish a supervisory framework for non-bank money lenders.
“That is a very important development. We know that we have gotten some feedback from those working in that space,” he said.
“We encourage them to continue to give feedback. We do not want to disadvantage any financial services segment as opposed to another but there is a need to ensure that consumers know what they’re getting into, that they have full knowledge of all information to make choices,” said Halkitis.
He acknowledged that that “uncontrolled” salary deduction has ravaged many families.
“The whole exercise is not to put anybody out of business but to ensure we have standards and ensure that people are informed of what they are doing, their rights, etc,” said Halkitis.
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