CREDIT-CARD companies are pulling out of Jersey because they cannot check customers’ details on a central register and the trend could spread to mortgages, loans and other financial services, the Jersey Consumer Council has warned.
Islanders have been left frustrated after having their applications for new cards refused when their old ones have expired and in some cases have described having their account closed despite having a good credit history, JCC chairman Carl Walker said.
Mr Walker said the problem had arisen largely because there was no single electoral register, listing all residents in Jersey, which would allow the finance companies to check applications.
He said: ‘We have worked very hard to try and get clear answers as to why this is happening, not only to Jersey residents but also to those in Guernsey and the Isle of Man.
‘It would seem, in Jersey’s case, that the inability of credit reference agencies to prove or check easily who people are, particularly those who have no credit history from living in the UK, is a huge stumbling block.’
Mr Walker explained that in the UK all citizens, whether or not they were entitled to vote, were listed on a single digital electoral register.
The register allows credit reference agencies, working for banks and finance companies, to check that applicants for cards or loans are who they say they are.
But there is no such central list in Jersey, with each parish holding its own electoral list.
‘Credit agencies are not going to ring round all 12 parishes to try to work out who’s who,’ Mr Walker said.
‘Experian, one of the UK’s leading credit reference agencies, told us that many applications would be successful if it had better access to Islanders’ data.
‘We are very concerned that this trend from UK banks could spread towards mortgage applications, loans, credit and other finance-related services.’
The council believes that other factors could be exacerbating the problem for potential customers in the Crown Dependencies.
After the 2008 financial crisis many British banks and lending corporations decided to ‘ring-fence’ their business, confining their operations to the UK only.
Mr Walker said that pursuing individuals who had failed to repay their debts was also seen as being more complicated through Jersey’s court system than in the UK.
Despite this, he said that many people preferred to use credit cards instead of debit cards as they offered greater protection.
Mr Walker said: ‘It’s much better to purchase online with a credit card than with a debit card. You are safer from scammers.’
