Regulatory Alerts2023-02-28
Added · Updated
Collection Guidelines for Microfinance Companies
The Central Bank of Jordan issued Collection Guidelines for Microfinance Companies to regulate collection mechanisms and communication with customers, ensuring transparency and fairness. All microfinance companies operating in the Kingdom are required to prepare a binding collection policy, incorporating these guidelines as a minimum, and submit it to the Central Bank after board approval. This policy must be effective from April 1, 2023. The guidelines specify permitted communication methods, set limits on contact frequency (e.g., maximum 5 calls/week, 25 calls/month between 8 AM and 5 PM, excluding Fridays and official holidays), prohibit aggressive or threatening language, and outline procedures for customer objections and handling defaulting clients.