Regulatory Alerts2022-04-20
Added · Updated
Circular No. 27/1/679 on Prohibiting Credit Inquiry Fees
The Central Bank of Jordan mandates that all banks operating in the Kingdom must immediately cease collecting credit inquiry fees from clients during credit status evaluations or re-evaluations. This prohibition applies regardless of whether the requested financial facilities are approved or rejected. The directive became effective on the date of issuance, April 20, 2022.
In the name of Allah, the Most Gracious, the Most Merciful
[Logo of the Central Bank of Jordan]
Reference No.: 27/1/679 Date: 18/9/1443 AH Corresponding to: 20/4/2022 AD
Circular to Banks Operating in the Kingdom
Greetings,
Given that some banks have been collecting credit inquiry fees when evaluating a client's credit status and financial capacity, or when re-evaluating it, and based on the provisions of Article 43(b) of the Central Bank of Jordan Law No. (23) of 1971 and its amendments, Article 99(b) of the Banks Law No. (28) of 2000 and its amendments, and the provisions of Article 16(a) of the Instructions on Dealing with Customers with Justice and Transparency No. (2012/56) dated 31/10/2012, banks are required to completely stop collecting this fee, whether the request for facilities is approved or rejected.
- The provisions of this circular shall apply as of its date.
Please accept our highest regards,
The Governor Dr. Adel Al-Sharkas [Signature]