Regulatory Alerts2018-04-11
Circular on Debt Collection Regulations and Procedures for Individual Customers
The Saudi Central Bank (SAMA) issued this circular to standardize and update debt collection regulations for individual customers, mandating clear communication protocols, documented contact limits, and strict procedures for account deductions and default handling. It requires financing institutions to obtain prior consent or judicial rulings before deducting funds, cap late fees at one installment value, and offer debt restructuring within thirty days when customers experience mandatory or voluntary changes in circumstances. The regulations establish minimum standards for customer care, enforce continuous internal audits of collection practices, and apply to all existing and future financing contracts concluded from October 1, 2018.
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