With reference to SAMA Circular No. 351000116619 dated 10/9/1435 H, which includes the first update of the Regulations for Consumer Financing and its Article 12.1, which states: " Creditors must quickly facilitate the transfer of balance(s) to other Creditors in the Consumer Financing accounts of their Borrowers. Creditors must not unreasonably withhold their consent to a balance transfer request they receive. Additionally, Article (12-2) states: "Creditors may not unreasonably withhold the issuance of a balance statement or certificate of outstanding liabilities requested by the Borrower; these must be issued within 7 Business Days from the date of request.

In view of the importance of regulating the processes of purchasing individual customers' consumer financing debts between banks (Consumer Financing Buyout) and in order to safeguard the rights of customers and banks, it is necessary for banks to comply with consumer financing regulations and adhere to the following instructions:

First: The bank purchasing the debt must prepare a specific form for the debt purchase request, ensuring it includes all necessary customer information, the date of the request, and all related documents, including (a letter of debt confirmation, a beneficiary acknowledgment letter, and the selling bank's approval of the debt transfer request). The form should clearly outline the obligations of both the customer and the bank.

Second: The Saudi system for rapid financial transfers, "SARIE," should be used for purchasing individual customers' debts instead of bank checks. The amounts for debt purchases should be directed through interbank payments with a special code, facilitating the completion of the purchase of existing debts.

Third: The bank payment issued by the purchasing bank for the debt must include the following details:

Customer's name.

National ID/Residence ID number.

Debt amount.

Purpose of the transfer.

Debt reference number.

Fourth: The bank purchasing the debt must provide the customer with the payment reference number (UTI) to facilitate the completion of procedures with the bank selling the debt. The selling bank must finalize the procedures, notify the customer and the purchasing bank of the customer's debt settlement, and issue a clearance letter to the customer within seven business days from the date of receiving the repayment amount for the existing financing. This must also be recorded in the customer’s credit report with the Saudi Credit Bureau (SIMAH).

Fifth: The purchasing bank is not permitted to allow the customer to use the remaining amount of financing until all necessary conditions have been met, the clearance letter from the selling bank has been received, and sufficient guarantees for the financing have been obtained (such as a salary assignment letter from the customer’s employer). The purchasing bank must explain this step to the customer before conducting the debt purchase process.

Sixth: Adhere to the early repayment standards outlined in the updated consumer financing regulations for contracts subject to these regulations.