Disclosure statement
Article 39
A Card Issuer that proposes to enter into a Credit or Charge Card Agreement with a Cardholder must provide an Initial Disclosure. The Disclosure must be clear and easy to understand and highlight the terms and conditions which may affect the Cardholder’s rights and obligations, and the Card Issuer must use any format specified by Saudi Central Bank from time to time for that purpose.
Furthermore, the specific terms contained under Article 74 dealing with ’account statement errors/disputed transactions' must be included in the Initial Disclosure. An Initial Disclosure is deemed to be provided to the Cardholder by any of the following:a) On the day recorded as the time of sending by the authorized Card Issuer’s server, if provided by electronic means, and the Cardholder has consented to receive it by electronic means.
b) On the day recorded as the time of sending by a fax machine, if provided by fax and the Cardholder has consented to receive it by fax.
c) 2 weeks after the postmark date, if provided by registered mail.
d) When it is received, in any other case.
Article 40
The Initial Disclosure must include the following information as a minimum:
a. The initial Credit limit, if it is known at the time the disclosure is made.
b. The APR and the annual 'Term Cost'.
c. The nature and amounts of any recurring non-Term Cost’ charges.
d. The minimum payment during each payment period and the method for determining it.
e. Each period for which a statement of account is to be provided.
f. The date on and after which term cost accrues and information concerning any Grace Period that applies.
g. The particulars of all fees and charges.
h. Information about any Optional Feature in relation to the Credit or Charge Card Agreement that the Cardholder accepts in writing, the fees for each Optional Feature and the conditions under which the Cardholder may cancel that feature.
i. The manner in which the term cost is calculated.
j. If the Cardholder is required by the Credit or Charge Card Agreement to pay the outstanding balance in full on receiving a statement of account:
1. Mention of that requirement
2. The Grace Period by the end of which the Cardholder must have paid that balance and,
3. The penalty fees charged on any outstanding balance not paid when due.
k. Information on all applicable charges including reporting of Default cases to a Licensed Credit Information Bureau or appropriate Regulatory Authorities as per Saudi Central Bank’s approval.
l. An illustrative example of calculations depicting sample conversion of foreign currency charges into Saudi Riyal, showing the foreign exchange conversion fees used when the Card Issuer converts a foreign transaction back to Saudi Riyal. The calculations should include one foreign currency purchase transaction and one Cash Advance transaction at an ATM/POS outside of Saudi Arabia.
Article 41
An Initial Disclosure may be part of a Credit or Charge Card Agreement or an application for a Credit or Charge Card or may be an annex to the foregoing documents. The Card Issuer is required to obtain a signed acknowledgement from the Cardholder of having read and received the Initial Disclosure. This signed acknowledgement must be retained, even after the Cardholder closes their Credit or Charge Card account.
Article 42
If the Cardholder consents, the Initial Disclosure may be provided by electronic means that the Cardholder can retrieve and retain.
Article 43
If the initial Credit limit is not known when the Initial Disclosure is made, the Card Issuer must disclose it in:
a. The first statement of account provided to the Cardholder; or
b. In a separate statement that the Cardholder receives on or before the date of the first statement of account.