Chairman of the Authority Decision No. (457) of 2020

Financial Regulatory Authority FINANCIAL REGULATORY AUTHORITY

Chairman of the Authority

Chairman of the Authority Decision No. (457) of 2020 dated 8/4/2020 Regarding the Standard Consumer Financing Contract Executed Between Licensed Consumer Financing Companies and Their Clients

Chairman of the Board of Directors of the Financial Regulatory Authority Having reviewed Law No. (10) of 2009 regulating supervision over non-banking financial markets and instruments; and Law No. (18) of 2020 issuing the Law Regulating Consumer Financing Activities; and Presidential Decree No. (192) of 2009 issuing the Basic Statute of the Financial Regulatory Authority; and Authority Board of Directors Decision No. (56) of 2020 regarding the conditions and controls for establishing and licensing consumer financing activities and the conditions and controls for licensing consumer financing providers;

Decided (Article One) Licensed consumer financing companies and consumer financing providers authorized by the Authority to conduct the activity shall be obligated to execute a contract between themselves and their clients, which shall include at a minimum the following:

1. Specifying the goods or services subject to financing in a manner that eliminates ambiguity.
2. Stating the price of the goods or services at the time of purchase, and the amount paid by the financing client at the time of contract execution.
3. Specifying the financing amount provided by the company, the repayment period, the number of installments and their terms and values, the yield rate used as the basis for calculating the financing value, and whether it is fixed or variable, taking into account Item (3) of Article (10) of the aforementioned Law Regulating Consumer Financing Activities.
4. Stating the collateral obtained by the financing company, including the prohibition on disposal until settlement, in accordance with the credit policy established by the company with the Authority's approval.
5. The client's authorization to the company to disclose financing data to the Authority and credit reporting agencies.
6. The financing client's right to prepay and the conditions associated therewith.
7. The company's right to sell or discount its due debts.
8. The contract shall include the license number issued to the company and a statement confirming its subjection to the supervision and oversight of the Authority.

Smart Village, Building 136, Giza, Egypt Postal Code: 110 Tel: +202 35340530 Fax: +202 35370036 WWW.FRA.GOV.EG Building Bridges not Walls We Build Bridges, Not Walls

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Financial Regulatory Authority FINANCIAL REGULATORY AUTHORITY

Chairman of the Authority

And for consumer financing companies licensed by the Authority to conduct the activity through commercial payment cards or one of the payment methods approved by the Central Bank based on their contracts with a network of sellers and providers of consumer goods and services, to execute a contract between themselves and their clients, which shall include in particular Items (4) through (8) of the preceding paragraph, in addition to the following:

1. A list of sellers and providers of goods and services at the time of contract execution, and the method of updating it by deletion or addition throughout its validity period.
2. Specifying the maximum financing amount provided by the company, its repayment terms, the yield rate used as the basis for calculating the financing, and whether it is fixed or variable, without being bound by the limits stipulated in any other legislation.

(Article Two) Each company licensed by the Authority to conduct consumer financing activities shall prepare a draft standard contract governing the relationship between itself and its clients, which shall include the provisions referred to in Article One of this Decision and other detailed provisions and rules that do not conflict with the provisions of the Law and the decisions issued in implementation thereof, subject to the approval of such models by the Authority before implementation.

(Article Three) This Decision shall be published in the Egyptian Gazette and on the Authority's website, and shall take effect from the date of its publication in the Egyptian Gazette.

Chairman of the Board of Directors Financial Regulatory Authority Dr. Mohamed Omran

Smart Village, Building 136, Giza, Egypt Postal Code: 110 Tel: +202 35340530 Fax: +202 35370036 WWW.FRA.GOV.EG Building Bridges not Walls We Build Bridges, Not Walls