Regulatory Alerts2014-03-16
Customer Credit Records
The Saudi Central Bank (SAMA) issued this circular to all domestic banks, requiring credit information company members to update customer records at least weekly and to clearly flag negative data involving active disputes or complaints. The directive addresses recent customer grievances caused by delayed updates and unflagged disputed information, mandating compliance feedback within two weeks. SAMA will enforce these obligations through targeted investigations and empower the relevant dispute resolution committee to act on previously rejected customer objections and referred violations under Articles 10, 12, and 13 of the Credit Information System.
In the Name of Allah, the Most Gracious, the Most Merciful Saudi Central Bank (SAMA) Headquarters
9040991813
Customer Protection Department Ref: .................... /C.P./ Attachments: ....................
Ref: 351000062501 Date: 1435/05/16 (Hijri) Attachments: ....................
Circular to All Banks Operating in the Kingdom
To, General Management Dear Sir,
Following greetings,
Subject: Customer Credit Records
With reference to the complaints recently submitted to the Bank and the observations made regarding certain members of the Saudi Credit Information Company (SIMAH) delaying the updating of records for defaulting customers or including disputed information pending judicial review, which has caused customer harm. With reference to the Credit Information System and its Executive Regulations, as well as the Customer Protection Principles issued via Circular No. 341000095960 dated 1434/08/03, the Bank wishes to confirm the responsibility of members to take the following:
- Update customer credit information periodically, at least once a week.
- Do not provide credit information companies with negative information regarding a customer that involves a dispute or complaint without notifying them that such negative information is subject to dispute or complaint.
We hope for your review and implementation, and request that you inform the Bank of any measures taken within two weeks from its date. Please note that the Bank will conduct investigations upon identifying any violations of these instructions in accordance with Article (10) of the Executive Regulations. Furthermore, the "Committee for Reviewing Violations and Resolving Credit Information Disputes" will take appropriate actions regarding customer objections previously rejected, as well as violations referred to it by the Bank in accordance with Articles (12) and (13) of the Credit Information System.
Yours sincerely,
Al-Suwaiq Abdulaziz bin Abdulrahman Al-Hilisi Deputy Governor for Supervision
W. Al-Nasser 5/5 P.O. Box 2992, Riyadh 11169 | Tel: 4662704 - 4662705 | Fax: 4662747 - 4662747