Regulatory Alerts2018-07-01
Added · Updated
Central Bank of Jordan Microfinance Consumer Financial Protection Instructions No. 2018/15
The Central Bank of Jordan issued Instructions No. 2018/15, effective October 1, 2018, imposing consumer protection obligations on all microfinance companies operating in the Kingdom. The rules mandate specific credit policies including maximum Debt Burden Ratios, require transparent disclosure of the Effective Interest Rate using standardized calculations, and prohibit unilateral contract modifications and balloon payments without documented repayment sources. Companies must also adhere to strict data confidentiality standards, fair debt collection practices, and complaint handling procedures, with quarterly reporting to the regulator required within 15 days of each quarter's end.