Regulatory Alerts2021-11-18
Circular Re. Instructions for the Purchase of Consumer Finance Debt for Individuals Between Finance Companies
The Saudi Central Bank issued instructions to regulate the purchase of individual consumer finance debt between finance companies, requiring the purchasing company to obtain customer consent, disclose all costs, and use the SARIE system for payments. The selling finance company is mandated to issue debt confirmation statements and release letters within one business day, while prohibiting the imposition of transfer fees other than early settlement or administrative charges. These regulations aim to protect customers by ensuring transparency in new financing terms and streamlining the debt transfer process.
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