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  • Chapter One: General Provisions

    • Article 1: Definitions

      The terms and expressions used in these regulations and procedures shall have the meanings assigned to them as follows, unless the context requires otherwise: 

      Term

      Definition

      SAMA

      The Saudi Central Bank.
       

      Creditor:Banks and finance companies.
       
      Debt CollectionCreditors collecting the amounts payable by the consumer - or his guarantor in case of default - under the provisions of the finance contract.
      CreditorsBanks, and finance companies subject to the supervision and control of SAMA in accordance with the regulations in force.
      ConsumerA natural person who has obtained the financing product.
       
      GuarantorA natural person who undertakes to perform all or some of the consumer's obligations.
       
      Third PartyAn external party who practices or initiates any of the collection procedures for the benefit of the creditor
       
      Compelling Change in Circumstances:An event leading to a compulsory change in the consumer's financial circumstances that materially affects the consumer's ability to fulfill his/her financial obligations, such as but not limited to: Inability to work (partially), retirement (compulsory), job loss, loss of fixed allowances given to the consumer by his/her employer on a monthly basis, or salary reduction.
       
      Voluntary Change in Circumstances:An event that leads to a change in the consumer's financial circumstances at the consumer's request, such as but not limited to Early retirement or resignation.
       
      Default:Consumer's failure or delay in paying a certain number of due installments or part thereof agreed upon in the finance contract, in accordance with the provisions of paragraph (1) of Article 9 of the Regulation.
       
      Total DisabilityA health condition that prevents the consumer from practicing his normal life and results in the consumer being medically unfit for work according to official reports issued or approved by the legally competent authority.
       
      ComplaintAny expression of the consumer's dissatisfaction with the provided service or product, whether justified or not, written or verbal.
       
      Documented CommunicationAn official, verifiable and retrievable means of communication in paper or electronic form.
       
      Consumer's ConsentPrior consent from the consumer through authenticated means of communication.
       
      Phone CallThe call that the consumer responded to and interacted with the employee about.
       
      CommunicationThe process of exchanging information and data by any means of documented communication between the creditors and the consumer, whether oral or non-verbal (such as sign language) for people with disabilities.
       
      EmployeesAny natural person who works for the interest of the creditors and under their management or supervision for remuneration, including - for the purpose of applying the controls - all employees contracted directly or contracted through a third party.
       
      DayCalendar day including weekends and public holidays.
       

    • Article 2: Objectives

      These regulations aim for creditors to achieve the following: 

      1. Improve the efficiency of debt collection by implementing effective procedures to reduce the rate of non-performing loans. 
         
      2. Adhere to professional conduct when dealing with consumers. 
         
      3. Follow the minimum procedures that must be adhered to when communicating with consumers or their guarantors for the purpose of rescheduling potentially defaulting debts or during collection. 
         
      4. Protect the privacy of consumers and their guarantors.
         

    • Article 3: Scope of Application

      These regulations apply to creditors and third parties.