Regulatory Alerts2018-03-29
Ensuring Equality Among Community Groups in Financing Products and Insurance Coverage for Financing Lease Contracts
The Saudi Central Bank issued this circular to mandate that all banks and financing companies operating in the Kingdom must not discriminate against customers based on the age of the actual user of a financed leased vehicle. Building on a prior directive to insurance providers, this directive explicitly extends the prohibition of age-based refusal of mandatory and comprehensive vehicle insurance coverage to the financing sector itself. Financial institutions are required to align their financing products and insurance coverage practices with the Principles for the Protection of Bank Customers and Financing Company Customers to ensure fair, transparent, and non-discriminatory service delivery.
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