1. Consumer Financing granted on the basis of any security other than the deduction of salary or pension payments (e.g. against lien of deposits or assignment of other regular earnings or pledge of collateral) is not subject to the provisions under Article 14(1).
2. A Creditor must carry out proper risk management procedures such as the use of credit scoring models for the granting or renewal of all Consumer Financings and must assign appropriate credit limits to its Borrowers.
3. Prior to granting a new Consumer Financing, a Creditor must have received a Borrower request through Authenticated Communication or the execution of a Financing Contract. A Creditor may not increase the Financing limit of its Borrower without receiving a request through Authenticated Communication from its Borrower seeking such an increase. Each such increase/amendment in the Financing Contract requires execution of a new Financing Contract.
4. Creditors are required to obtain knowledge of the purpose of the Consumer Financing from the Borrower and document that. This confirmation must be a part of a written acknowledgment by the Borrower clearly stating that he has fully understood the terms and conditions and confirms the execution of the respective Financing Contract.
5. Creditors are only allowed to refinance Consumer Financing accounts of those Borrowers who have repaid at least 20% of their original Amount of Financing under their Consumer Financing account.
6. Creditors refinancing the Consumer Financing accounts of their Borrowers must fully comply with the disclosure requirements under Section 5, Additionally, the Borrower must be provided with a break-down of the refinanced amount, clearly identifying the refinanced amount that will credited to his/her account, net of all identified fees and charges and the settlement of the original outstanding balance prior to a Refinancing.
7. Borrowers opting for early retirement are required to ensure that their pension payments continue to be routed to the Creditor in the event of outstanding balances under their Consumer Financing account. A Creditor may require a suitable undertaking from the Borrower affirming the foregoing arrangement.
8. Additional features or services requiring additional payment of fees and charges which are optional to the primary product features of the Consumer Financing may not be added on or embedded into the Consumer Financing account and must be clearly represented as an Optional Feature. A Borrower must have indicated his/her desire to obtain such services by Authenticated Communication before their inclusion in the account. Creditors must also clearly disclose all fees and charges for these services to the Borrower within their offer for such Optional Features.
9. A Creditor must promptly advise its Borrowers of the following amendments and or changes in their Financing Contract by giving them at least 30 Calendar Days prior written notice:

            (a) any increase of the annual fees and/or handling fees charged to the Borrower;

            (b) an increase in recurring fees or charges

            (c) any new fees or charges.

            (d) any other changes.

10. The Borrower may terminate the relevant Financing Contract with the Creditor if he/she does not agree to such amendment, change or modification by notifying the Creditor of his/her desire to terminate the Financing Contract within ten (10) Calendar Days after his/her receipt through Authenticated Communication of the notification of the aforementioned changes, subject to full settlement of all outstanding balances on the Consumer Financing account. The aforementioned notice must advise Borrowers of the 10 Calendar Day termination period.
11. A Creditor engaging in Outsourcing any component of its Consumer Financing Business must comply with the Rules on Outsourcing issued by SAMA.
12. A Creditor is required to implement a clearly defined Code of Conduct for employees engaged in roles involving sales and marketing of Consumer Financing products and follow-up and collection of impaired and delinquent Consumer Financing Accounts. (Creditors are also required to be in compliance with SAMA circular MAT/8211 dated 1/4/1431H.) A Creditor must provide those employees with a copy of the Code of Conduct and obtain their acknowledgement of receipt. The Code of Conduct must prohibit the following:

13. Creditors are required to have structured training programs for all new staff and Consumer Financing product knowledge programs for staff involved in marketing and sales and customer service for Consumer Financing products.
14. A Creditor must issue procedural rules to handle Borrower complaints relating to Consumer Financings and to ensure that Borrowers are made aware of the procedure and contact details of the complaint handling unit/department.
15. If a Borrowers' application for any Financing facility is declined, the Creditor must provide the Borrower with a written reason for the rejection through Guaranteed Communication Means.
16. Upon full and final repayment of the Consumer Financing by the Borrower, the Creditor is required to issue a no liability or clearance letter within 7 Business Days from the date of full and final settlement und update his record with a Licensed Credit Bureau.

1. A Creditor may only proceed to enforcement against a Guarantor if the Borrower is in Default and has failed to comply with a Default Notice for a period of not less than 30 Calendar Days from the date of receipt.
2. Creditors, their representatives, and any other assignees of the Creditor's rights under the Financing Contract or Guarantee Agreement may not take disproportionate, excessive or unreasonable measures to recover amounts due to them in the event of non-performance of aforementioned agreements
3. A Creditor may demand immediate repayment in the event of Default only through a Default Notice requesting the Borrower, or where applicable, the Guarantor to comply with his/her obligations under the Agreement within 30 Calendar Days from the date of the issuance of notice.
4. A Default Notice is not required in the event of any of the following:

5. A Creditor may suspend Draw-downs under a Financing Contract in the event of a failure by either the Borrower or the Guarantor to abide by its terms and conditions in a Default. However the Creditor is required to give notice of its intent to suspend Draw-downs to the Borrower and the Guarantor (if any) without delay.
6. A Creditor is required to provide without delay and upon request of the Borrower, a detailed statement of account incorporating all applicable fees, Term Cost and charges including any administrative charges, free of charge in the event of a Default or prepayment of the Consumer Financing.
7. A Creditor may not bring an action for the enforcement of security over goods pledged as collateral without first obtaining approval from the Committee for Settlement of Banking Disputes if: