Money

Government officers have met with banks and credit reference agencies, after we gave them our feedback and findings, earlier this year, from Islanders who were unable to obtain or renew credit cards. In January, we called for a centralised electoral register as part of a response needed to prevent further credit card companies from pulling out of Jersey and other Crown dependencies. Jersey Consumer Council Chairman, Carl Walker, said: “We understand that Government officers have been meeting with various banks and credit reference agencies since we first raised this issue earlier in the year. “We had more than 600 responses to our survey last summer about credit card applications, and shared the anonymised information with officers to help them get to the bottom of why it was becoming increasingly difficult for people to apply for, or renew, credit cards. “Recent discussions I had with the officers working on this very much indicated that a solution or work-around for the banks and the issues they’ve had with the electoral register could be on the horizon. This isn’t going to fix itself overnight, but the fact the Government has listened to the concerns of Islanders and is taking positive steps to resolve this is very much welcomed by the Consumer Council, as I am sure it is by Islanders too.” For more than two years, we've been meeting with credit card company representatives, credit reference agencies, the Jersey Bankers’ Association, finance leaders and the Jersey Financial Services Commission to try and understand, on behalf of consumers, why credit card companies are refusing new applications to Island residents, refusing to provide Islanders with a new card once their existing one expires, or, in some instances, closing existing accounts, despite excellent credit history. Mr Walker added: “Credit cards offer vital consumer protection when purchasing goods that turn out to be faulty or not as described. They can also help consumers to recover any funds lost if they’re the subject of fraudulent activity. “Used carefully, they can also earn points or cash-back for Islanders on their everyday spending.”  Last Friday (21 April), the Economic and International Affairs Scrutiny Panel questioned the Assistant Chief Minister with responsibility for Financial Services, Deputy Elaine Millar, in a Quarterly Public Hearing. Among other topics, the Panel asked Deputy Millar about actions being taken to aid the Island’s finance industry in maintaining Islanders’ access to credit cards. The Assistant Chief Minister noted that the absence of a centralised electoral register has been identified by the Consumer Council as one of the barriers to credit card operation in Jersey during recent discussions with banks. The Panel heard that conversations are ongoing to ensure that the existing credit card provision on the Island is safeguarded, and that various methods of facilitating this are being considered. Deputy Moz Scott, Chair of the Economic and International Affairs Scrutiny Panel, commented: “It is reassuring to hear that the issue of access to credit cards for Islanders is being treated as a priority and that the Assistant Chief Minister is working closely with the banks to address this issue. The Panel is keen to hear about progress being made to ensure that Islanders can maintain their access to this vital service.” Earlier this month, an email sent to Barclays Bank customers in the Channel Islands customers said that Barclaycard accounts without a UK residential address were being closed as the company was ‘no longer offering accounts to customers living outside of the UK’. However, the bank has since apologised to customers and confirmed that the email was sent in error.

Barclays Bank has apologised to customers in the Island after incorrectly telling them that their accounts would be closed. Barclaycard cardholders in Jersey and Guernsey have now been reassured that there will be ‘no change to the service they currently receive’, after they were mistakenly told that their credit cards would stop working at the end of next month. An email sent to Channel Islands customers on Wednesday, 12 April said that Barclaycard accounts without a UK residential address were being closed as the company was ‘no longer offering accounts to customers living outside of the UK’. Numerous customers shared the email with the Jersey Consumer Council and contacted us to share their shock and concern, with one saying that they’d been a Barclays customer for over 40 years. However, the bank contacted customers again later the same day to reassure them that the email had been sent in error. The original email said: ‘If you don’t have a UK residential address, then your card will unfortunately stop working on or after ‌30 May 2023 and we’ll close your account on or shortly after 21 June 2023. ‘We know that this may be disappointing and inconvenient, so we’re here to help you understand what this means for you and what to do next. If you have other accounts with us that are affected by these changes, we’ll contact you about them separately.’ Earlier this year, the Jersey Consumer Council called for a centralised electoral register as part of a response needed to prevent further credit card companies from pulling out of Jersey and other Crown dependencies. For more than two years, we've been meeting with credit card company representatives, credit reference agencies, the Jersey Bankers’ Association, finance leaders, and the Jersey Financial Services Commission to try and understand, on behalf of consumers, why credit card companies are refusing new applications to Island residents, refusing to provide Islanders with a new card once their existing one expires, or, in some instances, closing existing accounts, despite excellent credit history. And during the summer of 2022, we received more than 600 responses to a survey we conducted to try and get a better understanding of how consumers were being impacted by the move. We’ve shared our findings with the Government of Jersey, who are currently looking into the issue.

During the weekend of 11 September, the Revolut card system was hacked putting over 50,000 account holders' data at risk. Although affected account holders will be/have been advised, there is still a risk to other Revolut users. It is extremely important to keep vigilant as it’s likely cybercriminals will increase phishing attempts in the wake of this attack. Be alert for texts and emails that may contain malicious links. Scammers may pose as Revolut fraud staff to trick customers into divulging security details.   We're sharing Which? UK's article for you to read the full details.  

Would you mind taking 2 minutes to complete our credit card availability survey? Recent History Credit card availability to Islanders, or the increasing lack of it, has been on our radar for 2-3 years. We have held multiple meetings with local financial institutions, Jersey Finance, Jersey Banking Association, as well as representatives of the previous government representatives.   Recently, the Council contacted several other providers including AMEX, MBNA, M&S Bank, Virgin Money and Tesco, and received replies from all. We have since become aware that John Lewis is also following the same pattern.   Reasons Their reasons for either pulling out of the Channel Islands altogether; no longer accepting new applications; or only offering existing customers a replacement card; are two-fold:   1). Jersey is not part of the United Kingdom. 2). Providing the service is no longer commercially viable.   Locally, we are only aware that HSBC offers new applications to non-account holders if the applicant meets the appropriate requirements.   Having received more enquiries from islanders during the last year, and many in the last month, it appears the situation is worsening so we're trying to find out how many applications or renewal requests have been refused.   Survey Link The closing date is Wednesday 14 September. https://www.surveymonkey.com/r/creditcardavailability Thank you    

We're delighted to announce the launch of our Budget Tool.   It can be found by clicking on the 'Budget Tool' button at the top of the home page or clicking the link below.   Many of you used the old version so we've built this updated one to help Islanders with money management, especially during the current cost of living crisis.   It's best completed online but there is a print option enabling you to print and fill in by hand if you prefer. As you fill in your monthly income and out-going expenditure, the tool will automatically calculate and total, providing you with a final balance amount.   The information can be saved and recalled at a later date so it can be used to show your financial status to potential landlords, banks or lenders. It can also be updated as needed.   https://www.consumercouncil.je/budget    

Jersey’s Chief Minister has rejected a call from the Jersey Consumer Council to help Islanders through the current cost of living emergency.  The JCC took the unusual step to write to Senator John Le Fondré on 18 March, to ask him and his Government ministers to consider a package of measures which could help ease the financial pressures being put on consumers following a combination of Brexit, the economic recovery from Covid and the Russian invasion of Ukraine.   Combined, the three price rise drivers have resulted in record fuel prices, rocketing food prices and unprecedented energy price increases.   The five key measures the Council requested for a three month period were:    A reduction in fuel duty by 9p a litre  A £100 credit made available to each household to put towards their energy winter bill  Free bus journeys and free parking into town on Saturdays  A commitment to not introducing a reduction in the online shopping threshold before 2023  The establishment of a panel of Islanders and business leaders who could suggest further assistant measures    Below is the Chief Minister’s full letter dated 13 April 2022    Dear Carl,  Thank you for your letter, dated Friday, 18 March, relaying the suggestions of the Jersey Consumer Council (JCC). I apologise for the significant delay in replying to you.  The Government of Jersey is fully aware of the inflationary pressures facing all Islanders and has implemented support measures which were announced at the last States sitting by the Social Security Minister. Any measures adopted by the Government need to be targeted to achieve the maximum assistance to those most vulnerable to the effects of inflation.  The current inflationary pressure has largely arisen as a result of global factors that are beyond Jersey's control. However, in addition to the measures already taken, Ministers continue to consider further practical initiatives that can be taken where appropriate in the short and medium term to alleviate the impact of inflationary pressures will have on Islanders. These will be ready for presentation to the next Council of Ministers following the elections in June.   I have set out below detailed responses to each of the suggestions raised by the Consumer Council.     Reduce the duty on motor fuel by 9p per litre at the till  Whilst on a cursory basis this might appear attractive there are a number of concerns over this suggestion.  Reducing fuel duty is not an effective means of delivering help to Islanders. It does not benefit all households equally. Average mileage and fuel consumption in Jersey is significantly lower than in the UK. In addition, households on lower incomes - who have lower rates of car ownership - make up only a small percentage of motor fuel spending. A reduction in fuel duty would therefore disproportionately benefit those households with higher incomes and more vehicles, with some of those least well off receiving no benefit at all.  The Jersey Consumer Council's PriceComparison.je website on 21 March showed the cheapest litre of unleaded petrol in Jersey was 149.9p (in St Saviour) while the most expensive was 167.9p (in St Helier) - a difference of 18 pence. For diesel, the cheapest litre is to be had in St Helier at 153.0p in St Helier and the most expensive litre can also be had in St Helier for 173.9p - a difference of 20.9 pence, which is far greater than the reduction of 9p per litre which is proposed by the JCC. Islanders therefore already have the ability to achieve far greater savings than a reduction of 9p would achieve by being selective in where they purchase their motor fuel.  It should also be remembered that the States Assembly has declared a Climate Emergency and that we should be doing everything possible to encourage the use of public transport and other more climate friendly modes of transport at this time, many of which offer better value to islanders. The component of fuel duty hypothecated to the Climate Emergency Fund is essential in delivering on the commitments identified in the Carbon Neutral Roadmap that is due to go before the States in April.  A 9-pence reduction in fuel duty would reduce Government income by a little over £4 million per annum. The Carbon Neutral Roadmap proposes a suite of policies that seek to reduce Jersey's reliance on fossil fuels over the long term for reasons of sustainability (carbon reduction) but also to increase the affordability and security of our energy supplies. By reducing resources to deliver these policies, Jersey will remain exposed for longer to energy market supply issues and the geopolitical tensions associated with fossil fuel production that we are seeing causing the current market volatility and associated impacts.  Finally, in relation to a reduction in fuel duty it would also be important to have some degree of confidence that such a reduction would be passed on in full to consumers and I note that this concern is also being expressed in the United Kingdom.     Make £100 credit available for every household to spend on their chosen energy bill  It is important that any measures agreed by Ministers provides support in a way that is targeted to where it is most needed and can be of the most assistance. For this reason, a £100 credit to all households is not being actively considered. However Ministers have agreed a temporary scheme to support those most vulnerable. The Minister for Social Security has announced plans for monthly payments to support those most vulnerable in our community. This will take the form of a direct monthly payment of £20 to every adult or child in a household claiming Income Support and every pensioner claiming a means tested benefit.  This scheme will run from April to December 2022 and will benefit approximately 11,450 individuals. An eligible household of four will therefore receive £80 per month for nine months which is clearly more beneficial than a single payment of £100. Payments will be sent automatically - there will be no need for people to apply. These payments will also go to everyone receiving the Community Costs Bonus (CCB). Officers will also be exploring options for longer term support which will be considered by the new Council of Ministers following the election in June.     Commit to not reducing the online shopping threshold before 1 January  I can confirm that this is already the case and that the GST De Minimis Level will not be reduced (from £135 to £60) until mandatory registration of larger offshore retailers commences. As identified in the Law [Finance (2022 Budget) Law], which was approved by the States Assembly at the end of last year, the reduction in the GST De Minimis Level will not come into force until 1st January 2023.     Consider allowing free bus journeys to St Helier and/or three hours free parking on Saturdays  Whilst theoretically attractive, experience and evidence does suggest that these proposals can result in unintended consequences which would not achieve the desired outcome. Previous surveys indicate that Jersey consumers value the convenience of a location above the price of parking when choosing where to shop. Indeed, the percentage of respondents who considered the price of parking to be a factor was less than 10%.  It should be recognised that free parking could therefore work contrary to its intended result. As it removes the price incentive to walk, cycle or use the bus for town workers, this could generate additional demand for parking spaces making it harder to find a parking space which in turn may put people off shopping in the town.  Regarding free bus journeys, the most recent Household Spending survey found that bus fares averaged less than 0.2% of total expenditure - and that actually it was higher earners that spend more on public transport than lower earners.   Consider establishing an independent anti-inflation panel  The Government has reconstituted the Inflation Strategy Group to monitor changes and recommend any steps the Government can take to assist Islanders. This group has already met and is supported by the Chief Economic Advisor and Chief Statistician, and other specialist officers.  Current forecasts are for further changes in inflation over the course of the next year and the Government will aim to target any supportive measures to assist Islanders who are most vulnerable That is why we have put in place more than £2 million worth of assistance for those most affected by the current inflationary pressures, and which are taking affect during the course of this month.   I hope the above clearly addresses each of the points raised by the Consumer Council in your letter and provides the Council with confidence that the Government of Jersey is taking this matter seriously.   Yours sincerely  Senator John Le Fondré  Chief Minister    Consumer Council Chairman Carl Walker responded by saying: "We are very disappointed with the response from the Chief Minister and his team, and it is clear that the Government of Jersey believes it is already doing enough to help Islanders through these extremely difficult times.  "The Council has tried its best to prompt the Government to act beyond the £4.62 a week it has promised to those already on benefits, and will now concentrate on developing other work streams which may help consumers cope with this cost of living emergency.”    Islanders are welcome to share their thoughts on the JCC’s social media accounts or by emailing contact@consumercouncil.je