Article (25)
Effective from Feb 01 2025 - Nov 04 2011
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Companies shall take all measures and precautions necessary to ensure soundness, accuracy, integrity and completeness of information obtained according to the Law and its Implementing Regulations and shall:
| 1. | not collect credit information from any party prior to signing a membership agreement with that party; | |||
| 2. | gather credit information from members in line with the criteria approved by the company and which include administrative, technical and legal requirements as well as the working rules approved by SAMA; | |||
| 3. | take the necessary actions to ensure that there are reasons for the member’s request for credit information; and | |||
| 4. | inform the member of his obligations according to the Law and its Implementing Regulations. | |||
A company shall be held responsible to the parties transacting with it, i.e. public and private institutions/ agencies, firms and consumers, for any invalid or false information and data it provides. However, this will not waive the company’s right of recourse against a member for any damages the company incurs once it proves the member's deception and misleading information.