📜 Code of Conduct
The PLA Code of Conduct establishes the standards of professionalism, fairness, and accountability required of all members. It ensures that all lending practices are conducted lawfully, transparently, and with respect for clients’ rights.
1. Legal & Licensing Requirements
- Only incorporated entities (under Companies Act, IBC Act, or Partnership Act) may act as money lenders and can be apart of the Private Lenders Association of The Bahamas (PLA).
- All lenders must obtain and maintain a valid money lending license from the Securities Commission of The Bahamas (the Commission).
- All Members must pay their annual membership dues to remain a part of the PLA
- All members must adhere to the rules and guidelines of the PLA
2. Fair Dealing & Responsible Lending
- Money lenders must act fairly, honestly, and transparently in all dealings.
- Must implement responsible lending policies: assess the ability to repay, provide clear product information, and ensure no over-indebtedness.
- Rates and Fees must be clearly stipulated in all contracts to ensure full transparency with no hidden charges
3. Contract Clarity & Mandatory Terms
- All loan agreements must be in English, signed in writing, and include:
- Loan date, principal amount, term, interest rate, fees, stamp duty (if applicable), security terms, names of parties.
- Borrowers must receive a copy of the agreement promptly if they request the same.
4. Interest & Fees
- Must comply with the Rate of Interest Act—simple interest on Bahamian-dollar loans above $100 may not exceed 20% annually.
- No:
- Default-triggered interest increases.
- Capitalized default interest beyond statutory limits.
5. Repayment & Fees
- Provide defined repayment schedules.
- Late fees permitted but have to be clearly disclosed and how it is calculated
6. Collateral Management
- Clearly disclose process for handling collateral in event default (if applicable).
7. Transparency & Record-Keeping
- Issue statements for borrower payments within 72 hours if the client requests the same.
- Maintain detailed loan files, borrower info, contracts, payments, collateral.
8. Fitness & Proper Conduct
- All owners, directors, officers, and employees must be “fit and proper” individuals. No one with criminal convictions or prior sanctions
- Staff must be trained on AML/CFT policies under Financial Transactions Reporting Act & Regulations.
9. AML & CFT Compliance
- All members must Enforce due diligence and controls to prevent money laundering or terrorism financing, proliferation, per AML/CTF Acts.
10. Transparency with the Commission
- Notify and receive approval before:
- Changing shareholding, directors, or control.
- Merging, acquiring, or selling loan portfolios.
11. Reporting & Cooperation
- Fully cooperate with inspections and requests for information
12. Debt Collection Etiquette
- Strict prohibition on violence, threats, intimidation, or harassment in debt collection.
- Ensure all staff or agents involved in debt collection are properly trained
13. Consumer Protection & Education
- Present clear, accessible loan product information, emphasizing consumer rights and responsibilities.
- Encourage borrowers to ask questions—publicize borrowers’ rights under this Code.