Clarifying Article No. (10) and Article No.( 21), Including the Method of Calculating the Annual Percentage Rate in the Updated Consumer Finance Regulations
| No: 381000095091 | Date(g): 4/6/2017 | Date(h): 10/9/1438 |
Translated Document
Clarifying inquiries received by SAMA regarding the customer's Right of Termination or Withdrawal from the agreement (Article 10-1), Initial Disclosure (Article 21-1), and the calculation of the Annual Percentage Rate (APR) under the updated Regulations for Consumer Financing:
We inform you of the following:
-Article 10-1: The provisions of this article remain in effect, whereby the customer’s right to terminate or withdraw from the agreement expires within 10 days from the contract signing date if the customer has utilized the financing. Examples include, but are not limited to:
1) Withdrawing any portion of the cash financing amount.
2) Depositing shares into the customer’s portfolio.
3) Owning or using the financed item.
-Article 21-1: Compliance with the Initial Disclosure statement for financing contracts as specified on SAMA’s website.
-Method of Calculating the Annual Percentage Rate (APR)*: Adherence to the Guidelines for Calculating the Annual Percentage Rate (APR) as detailed on SAMA’s website.
*Rules Governing Calculation of Annual Percentage Rate (APR) replace the Guidelines for Calculating the Annual Percentage Rate (APR).