Regulatory Alerts2021-11-18
Instructions for the Purchase of Consumer Finance Debt Between Finance Companies
The Saudi Central Bank issued these Instructions to regulate the purchase of consumer finance debt between licensed finance companies operating in the Kingdom. The framework mandates that purchasing companies disclose fees, obtain customer consent, and utilize the Sari fast transfer system for settlements, while prohibiting unauthorized cost transfers to customers. Concurrently, selling companies are required to issue debt statements and clearance letters within one business day, ensuring transparent credit registry updates and streamlined inter-company debt transactions.
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