In reference to SAMA receiving complaints from bank customers regarding the numerous phone calls they and their family members, relatives, or friends receive at various and inconvenient times from collection employees working for the banks, aiming to pressure them to pay their outstanding debts to these banks.

In the interest of SAMA in organizing the process of debit collection bank customers and the communications related to this, as well as protecting customer privacy, the bank must establish an appropriate mechanism to limit these communications to the debtors or their guarantors whose names and signatures appear on the banking documents of guarantee and not to other family members, relatives, or friends. Furthermore, these communications should be confined and specified within the official working hours of the banks. In case customers do not respond regarding the bank’s indebtedness, they should be followed up through the specialized authorities. We hope to be informed of the measures taken in this regard within a month from its date.

according to Circular No. (5497/MAT/2346) dated 28/01/1432H. In view of SAMA receiving complaints from bank customers that include threats from collection employees working for or contracted by the banks to record remarks on their credit records with the credit information company "SIMAH" to pressure them to settle their outstanding debts, SAMA wishes to remind banks not to involve the name of SAMA, credit information companies, or other supervisory entities in the communications of debt collectors with customers.

According to SAMA Circular No. (341000059261) dated 11/05/1434H. SAMA has observed that some banks are using unprofessional methods to collect distressed debts and are misleading defaulting clients by promising to remove their names from the "SIMAH Company list" upon settling their debts.

Given that following such methods with delinquent bank customers reinforces the incorrect concept about the role of credit information companies, and negatively impacts the efforts made to educate beneficiaries about the true nature and content of the credit report, accordingly, SAMA emphasizes the necessity for all banks operating in the kingdom, particularly the collection department employees within the bank, the contracted collection agencies, and other relevant departments, to refrain entirely from using unprofessional methods to collect distressed debts. This includes informing distressed customers that their names will be removed from the "SIMAH list" upon settling of the debt, which contradicts the true mechanism of the existing credit reporting systems.