Regulatory Alerts2013-03-24
Draft Circular on Customer Information Issued by the Saudi Credit Information Company (SIMAH)
The Saudi Arabian Monetary Authority (SAMA) issued this draft circular to mandate that all banks operating in the Kingdom, including their collection departments and contracted agencies, strictly avoid unprofessional practices when collecting distressed debts. Specifically, banks must cease misleading customers by falsely claiming that their names are removed from the Saudi Credit Information Company (SIMAH) list upon debt settlement, as this contradicts the actual credit reporting mechanism. This directive reinforces the accurate understanding of credit information companies' roles and ensures that awareness efforts regarding credit report contents remain effective.
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