Financial Consumer Protection Instructions for the Banking Sector (14-2024)

No: 27/1/15593
Date: 23/3/1446 Hijri
Corresponding to: 26/9/2024
Financial Consumer Protection Instructions for the Banking Sector NO. (14/ 2024) Issued by virtue of the provisions of Articles (4/ b), (43/ b) and (65/ b) of the Central Bank of Jordan Law No. (23) of 1971 and its amendments, and Articles (44) and (99/ b) of the Banking Law No. (28) of 2000 and its amendments

Article (1):
These Instructions shall be called "Financial Consumer Protection Instructions for the Banking Sector". The provisions of these instructions shall apply to all banks operating in the Kingdom after (90) days from the date of publication in the Official Gazette.
Article (2): Definitions:
A. The words and expressions mentioned in these instructions shall have the meanings assigned thereto in Article (2) of the Banking Law in force, unless the context indicates otherwise. B. The following words and expressions wherever mentioned in these instructions shall have the meanings assigned thereto hereunder unless the context indicates otherwise:
Client The natural or legal person who has obtained, used or will obtain any of the banking services Retail Portfolio Any banking service provided by the bank to an individual or a group of connected persons. Credit Card The card that enables the client to withdraw an amount of money or purchase a commodity or a service without having an available balance on his/ her account, whether the client should repay the whole used balance on the maturity date or a percentage of this balance defined in the contract, where interest/ return shall be calculated on the remaining balance. Costs Include commissions and/ or expenses and/ or fees and/ or any other amounts charged by the bank, other than the interest/ return, which shall be paid by the client by virtue of the contract.

Effective Annual Percentage
Rate (Effective APR)
A percentage that represents the actual annual costs of credit throughout the credit period. This includes the nominal interests and all the costs specified by virtue of the contract except the commissions and fees owed by the client due to his/ her failure to fulfill the contractual obligations. Such percentage shall be calculated by assuming that the credit agreement will remain valid for the agreed- upon period and that both of the bank and the client will fulfill the obligations thereof by virtue of the agreed- upon terms and conditions and in pursuance of the equation mentioned in Appendix No. (1). Regular Income The net monthly salary of the client received by the bank and any other income of the client from a duly known, specified, and verified source(s), such that this income is recurring for a period of not less than (3) consecutive months, in addition to the allowances or bonuses paid to the client periodically. Declaration of Liabilities A form that includes all credit and financial liabilities owed by the client to any party that require the client to pay a periodic installment, including liabilities arising for him/ her as a guarantor. Debt Burden Ratio (DBR) (The total deductions from the regular income of the client or guarantor for all granted credit facilities as stated in the credit report and for those intended to be granted by the bank + the total amount of other liabilities stated in the declaration of liabilities) to (the regular income of the client or guarantor). Over-Indebtedness Ratio (The total deductions from the regular income of the client or guarantor for all granted credit facilities as stated in the credit report and for those intended to be granted by the bank + the total amount of other liabilities stated in the declaration of liabilities

• The fixed monthly basic expenses declared by the client, such
  as (housing, education, bills...etc.) to (the regular income of the client or guarantor).

Chapter One: Financial Consumer Protection Principles for Retail Portfolio
In an effort to create a comprehensive framework for financial consumer protection that contributes to achieving sustainable development, financial system stability, and enhancing financial inclusion, these instructions have been formulated to ensure the implementation of financial consumer protection principles, as follows:
First: Principle of Dealing with Clients Fairly
Article (3): The bank shall deal fairly with all clients at all stages of the relationship with them,
so that this is an integral part of the bank's culture. It must also provide the necessary care, especially for clients with limited income and education, the elderly and people with disabilities. The bank is prohibited from discriminating between its clients based on gender, religion, race or any other reason.
Article (4): The bank shall set approved internal procedures that clarify the mechanism for
collecting debts and inquiring about clients and determine the controls that regulate this process in a manner consistent with the legislation in force in this regard.
Article (5): The bank is prohibited from obtaining duplicate credit documents for the same credit
from the client or guarantor, for example: client’s signature on the credit contract in addition to his/ her signature on bills of exchange and/ or cheques for the same credit.
Article (6): The bank shall provide the guarantor or any of his/ her inheritors with a statement
showing the amounts paid by the guarantor on behalf of the client if the guarantor or one of his/ her inheritors requests it and according to rules.
Article (7): In the event that the client defaults, the bank shall adhere to the following:
A. Notify the client and the guarantor by the approved and duly agreed upon means, in addition to sending a short text message (SMS) within a maximum period of (15) days from the installment maturity date, and explaining the procedures to be taken by the bank in the event the default continues. The bank shall keep copies of these notifications for at least a period of (5) years from the date of sending them or according to the retention periods stipulated in the relevant legislation- if any- whichever is longer. B. Not practices any of the following:

1. Any writing on a parcel or a mail sent to the client or the guarantor that may
   be understood as being related to a debt.
2. Any communication with any person for the purposes of inquiring about the
   client or the guarantor unless there is a written authorization from the client or guarantor in this regard.
3. Providing the client and/ or guarantor with incorrect information about the
   consequences of defaulting on payment.

Article (8): If the client and/ or guarantor pays/ settles the debt, the bank shall immediately stop
the legal procedures taken against the client and/ or guarantor, including discontinuing the claim.
Article (9): If the salary is the source of payment for the granted credit facilities, the bank shall
take into consideration the date of salary receipt when determining the due date of the installment, and take the necessary technical measures to deduct the installments on the date agreed upon with the client under the contract signed with him/ her.
Article (10): In the event that the bank discovers that there is an error in its entries on any client’s
account, which resulted in a gain for the bank’s benefit, the bank shall immediately amend the relevant entries to implement the required corrections (correcting that error and all the resulting interests and/ or commissions) on the account of that client and all other clients whose accounts have the same error without waiting them to claim.
Article (11): The bank shall return the interests/ returns received (in advance) and not due on loans
and advances of clients who wish to pay early, as of the date of early settlement until the date of the original payment of the loan, without requiring the client to inform the bank of his/ her desire to pay early before making the payment. Islamic banks shall find a mechanism to achieve this so that it is consistent with the provisions of Islamic Sharia and for all clients without prejudice to their rights.
Article (12): The bank shall consider the petitions submitted by clients and/ or guarantors and
study the possibility of granting them or reaching a decision agreed upon by both parties.
Article (13): In the event that the client requests the transfer of credit facilities from one bank to
another, both banks shall appoint a liaison officer to coordinate between them in a manner that achieves the client’s interest, and Islamic banks shall find a mechanism to achieve this in a manner that is consistent with the provisions of Islamic Sharia. Second: Principle of Disclosure and Transparency
Article (14): The bank must adopt disclosure practices related to banking services and include a
clause in the code of conduct and work ethics that clarifies the necessity for the employee to explain to the client the basic terms and conditions related to the service upon his request.
Article (15): In the event that the bank grants its clients preferential interest/ return rates for the
first year/ years of the loan/ finance, the bank shall disclose to the client that this rate is valid for a specific period by including it in the product advertisement- if there is

any- in the contract and in the credit offer, with the client’s signature along therewith in the contract.
Article (16): The bank shall explain to the client the difference between the discounted credit
(whose total interest/ return is paid in advance) and the other types of credit.
Article (17): The bank shall, after signing any service contract with the client and the guarantor,
provide them with an original copy of the contract, installments repayment schedule, and any forms and declarations that were signed, whether upon granting, renewal, rescheduling, or upon making any amendment, so that this copy is exempt from commissions. The bank shall obtain the signature of the client and guarantor indicating receipt of these documents.
Article (18): The bank shall provide its clients or any of the legal inheritors (upon request) with
copies of the signed contracts and any notices, data or statements related to their accounts, even if there is a pending legal dispute between the bank and the client or his/ her inheritors.
Article (19): The bank shall publish a list of the interest rates and commissions for all banking
services within the branches and on the bank’s website home page and any amendments made to it, and provide the Central Bank with the related link.
Article (20): Taking into account the provisions of the legislation in force regarding the calculation
of interest on deposits, the bank shall adhere to the following:
A. Determine the interest rate paid on deposits according to their amount and term, and announce it clearly in a prominent place in the bank's headquarter, branches and its website home page. B. Adhere to the announced interest rate according to the term of the deposit as a minimum when the renewal date is mature.
C. Notify clients through the available means agreed upon with them about the date
of deposit renewal each time, (5) working days before the maturity date. The notification shall include an electronic link to the interest rates applied to deposits at that time.
Article (21): The bank shall include all the terms and conditions for all banking services provided
to its clients in detail on its website and in a manner that is easy to access.
Article (22): All the forms and contracts approved by the bank shall be written in a formal Arabic
language understandable by the average person, printed in a clear legible font, with a font size of no less than (12). The texts shall be clear and do not bear more than one interpretation or explanation, with a copy in English provided for anyone who wishes.

Article (23): The bank shall designate a separate contract for each banking service, which must
include the terms and conditions specific to that service only.
Article (24): The bank shall include in all contracts and account- opening forms approved by it the
following information and data as a minimum:
A. The detailed address of the client and the guarantor, their contact details and their signature indicating their acknowledgement of their validity and their commitment to inform the bank of any amendments thereto. B. Interest/ return rates, costs incurred by the client that arise from the contractual relationship between them and the basis for calculating them.
C. The procedures that will be taken in the event that the client breaches the terms
included in the contract/ account- opening form, for example, the costs that may be incurred by the client. D. The terms and conditions of the mandatory sub- services accompanying the product (if any). E. The bank may not terminate the contractual relationship unless the client fails to fulfill a contractual obligation and after being notified through the means approved and agreed upon with the client, including sending a short text message (SMS). F. Notwithstanding the provisions of clause (E) of this article, the contract/ account- opening form may include a termination condition without resorting to the court in any of the following cases:

• The bank discovering that the client is listed in any of the designation lists
  of those with whom dealing is prohibited.
• If any of the documents submitted for the credit, or for guarantees and
  pledges is incorrect.
  G. A reference to the existence of an independent unit in the bank to handle client complaints, and specifying the means of contacting it. H. A paragraph in large, distinct font stating that both the client and the guarantor have read the contract/ account- opening form and understood all of its terms, and that the client and guarantor sign adjacent to it to that effect.
  Article (25): The bank is prohibited from including the following in any of its approved contracts
  and account- opening forms:
  A. Text/ texts indicating the bank’s right to amend any of the terms of the contract/ account- opening form at its sole discretion. B. Blank spaces or incomplete or missing information with the client and/ or guarantor authorization of the bank to fill them in and agreeing in advance to their validity and waiving the right to object to them.
  C. Terms and expressions bearing the status of commissions under other names
  without stating their nature or defining them.

D. Unclear text/ texts that may bear more than one interpretation or explanation, with the signature of the client waiving his/ her right to object to them. E. A text/ texts indicating that the client and/ or the guarantor waives the bank’s sending of notifications or notices arising from the contractual relationship, or from any of his/ her rights, such as banking confidentiality, challenging the bank’s procedures, or resorting to the judiciary.
Article (26): It shall be excluded from the provisions of Article (25/A), if the services provided to
the client by virtue of the contract are under a condition or conditions imposed by a third party, provided that the client and the guarantor are notified of the new conditions within (7) working days by the means of communication approved by the bank for the client and the guarantor, and by sending a short text message (SMS) to them. Credit Contracts:
Article (27): The bank shall disclose to the guarantor before signing the credit contract the
financial and legal consequences arising in the event that the client defaults on payment, with his/ her signature indicating his/ her knowledge and understanding of that.
Article (28): The bank shall provide the client and guarantor prior to signing the credit contract
with a Fact sheet of the Product, provided that it includes, at a minimum, the data contained in Appendix No. (2).
Article (29): The bank shall, before signing the credit contract with the client, provide him/ her
with a copy of the credit contract before signing and with a duly signed credit offer. Such offer shall include the credit amount, period and total value (principal, interest/ return and costs) which will be paid by the client throughout the credit period and the Effective APR, along with defining the validity period of such offer, and giving the client sufficient time to read and review all the terms of the contract and the credit offer.
Article (30): The bank shall adhere to the clauses stated below and shall include in the credit
contract what expresses them, at a minimum:
A. Type of credit.
B. The credit amount in figures and in writing.
C. The credit period.
D. The nominal interest rate, determining whether it is fixed or variable, and specifying the variable part and the fixed part (the margin), with the commitment not to raise the margin in any way during the validity of the contract. E. Number of installments, the installment amount, the maturity date of the first installment and monthly installments.

F. Determining the date of the variable interest rate/ return adjustment period. G. Effective annual percentage rate (APR) and any costs not included in the calculation of it. H. The terms and mechanism of the early settlement of the credit or any part thereof.
I. A paragraph in a large and distinct font, stating that any change in the variable
interest / return rate will lead to a change in installments in terms of amount, number or both, and that the client and guarantor shall be notified of this change at the address approved by the bank and by sending a short text message (SMS), provided that the client and guarantor shall sign next to it to indicate reading it and agreeing to what is stated therein. J. Cases in which the bank has the right to request new collaterals and what will happen if the request is not met. K. The bank shall have the right to make netting between the credit balance/ balances of all the accounts of the client and/ or the guarantor therewith and all the installments due in case such value is unavailable or in case the available value is insufficient in the main account linked to the granted credit, provided that the client and guarantor shall sign next to it to indicate reading it and agreeing to what is stated therein
L. The consequences on the client and/ or guarantor in the event of a breach of the
contractual obligation towards the bank, including, for example:

1. Adjusting any resulting costs.
2. The execution on any collaterals offered by the client or the guarantor to
   secure the debt whether it is a real estate, or any other collaterals.
3. The credit information of the client and/ or the guarantor that will be
   disclosed to credit information companies licensed by the Central Bank and in accordance with the legislation in force in this regard. M. The client's right to terminate the credit contract before using any part of the granted amount within (5) working days from the date of signing the contract, provided that the client bears all costs associated with the credit contract such as commissions or fees, without incurring any interest or early settlement commission. N. A clause stating whether the credit granted is covered by insurance, indicating the costs that will be incurred by the client as a result, with the client’s signature alongside this clause in the credit contract.
   Article (31): The bank is prohibited from including the following in credit contracts:
   A. Any conditions that contradict what was stated in the credit offer submitted to the client, or any material conditions that were not stated in the offer, or a reference to other documents that include texts that constitute an obligation on the client.

B. A text/ texts indicating the approval of the client and the guarantor that the bank’s sending a notice to either of them is considered to have been sent to both of them and that they have been informed of its contents, or that a notification to one of the guarantors is considered a notification to all guarantors.
C. Text/ texts indicating that the client's address shall be the chosen address of the
guarantor for the purposes of notification or reporting.
D. Text/ texts indicating the guarantor’s approval for the bank to increase the loan balance in agreement with the client without the need to notify the guarantor, and the guarantor’s commitment to pay all liabilities resulting from that, and his/ her waiver of his/ her right to object to that.
Article (32): The bank shall provide the client with a detailed schedule showing the installment
break- down (principal, interest and costs), the maturity dates and the grace period (if any).
Article (33): In the event that the credit granted to the client includes a variable interest rate, the
bank shall notify the client as soon as the interest rate is adjusted through the means approved and duly agreed upon with the client, and shall send a short text message (SMS) to that effect, so that it includes the new and old interest rate, the amount of the installment before and after the adjustment and/ or the effect on the number of installments, and provide the client with the new repayment schedule upon request. Deposit Contracts/ Account- Opening Forms:
Article (34): The bank is prohibited from reducing the interest rate on the term deposit before its
maturity date stated in the contract.
Article (35): The bank shall include in the deposit contracts/ account- opening forms signed with
clients, in a distinct font, clauses clarifying any special provisions related to the nature of the account and in accordance with the legislation in force, including, but not limited to:
A. The consequences arising from returning cheques due to insufficient funds in current accounts. B. Conditions for deposit withdrawal before maturity and the consequences thereof in term deposits.
C. Procedures for renewing the deposit and the interest rate that will be applied
thereto at the time.
D. Procedures related to joint accounts.
E. Procedures for managing the accounts of minor clients in accordance with the legislation in force in this regard. F. Clarification of the periods and procedures for dormant accounts and the consequences thereof.

G. Procedures related to zero- balance accounts.
Article (36): The bank shall continue to calculate interest on the deposit as stated in the contract
signed with the client despite a decision issued on precautionary seizure by a competent authority and/ or the death of the client, unless otherwise decided by the competent authority. Electronic Banking Services and Services related to a Third Party:
Article (37): The bank shall disclose to the client, before providing electronic banking services or
services related to the business of a third party, the following, and in a manner consistent with the service provided:
A. All costs related to the service provided.
B. The risks associated with electronic banking services, whether arising from the client’s misuse of the service or hacking, and providing advice that enhances the safe use of such services.
C. Cases in which the responsibility for loss resulting from risks related to
electronic services lies with the client.
D. The contact information that the client can use to report the loss or theft of his/ her information or to object to any transaction on his/ her account or any other inquiries, and the period within which the client can submit the report or the objection.
Article (38): The bank shall notify clients of any change or update to the systems that will affect
them and of the conditions related to electronic banking services by all approved means for that purpose.
Article (39): The bank shall include in the one- time password (OTP) message the amount that
will be charged to the client’s account and warn him/ her against sharing this message with others. Third: Principle of Protecting Clients’ Data and Information and their Privacy
Article (40): Taking into account the legislation related to the protection of personal data and its
privacy, the bank shall adhere to the following at a minimum:
A. Including in contracts/ account- opening forms a clause stating that the data and information obtained from the client and/ or the guarantor within the framework of the contractual relationship shall be subject to the provisions of banking confidentiality stipulated in the Banking Law in force. B. Developing approved and clear internal procedures to ensure the protection of client data and information and maintaining their confidentiality and privacy, and ensuring the policy of segregation of duties and dual control.

C. Employees shall sign forms confirming their commitment to maintain the
confidentiality of client data and information, and not misusing or disclosing such data and information during their employment with the bank and after leaving it. D. Providing a secure and confidential information technology environment for all information and data available to the bank about its clients and their transactions in all its banking channels to ensure maintaining the confidentiality of client data when carrying out any of its banking operations. The bank shall continuously test this environment and ensure its validity. E. Including the code of conduct and work ethics of the employees with the ethical behaviors regarding data protection and confidentiality, and the procedures and legal consequences resulting from the use or theft of client data or disclosing it to a third party without the clients’ consent. F. The data collected about the client must be documented, correct, accurate, and must be updated in accordance with legislation in force. G. When receiving inquiries from the client, the bank shall not disclose any information related to him/ her or his/ her accounts except after verifying his/ her personal identity through various and proper means of verification. H. Bear full responsibility for compensating any damage that may be incurred by the client because of a fault and/ or hacking of its systems or the occurrence of fraud cases that occur without negligence or failure on the part of the client.
I. Providing awareness programs for employees about the privacy of data and
information, maintaining the confidentiality, accuracy, and security of clients’ personal and financial data. J. Educating and orienting clients about their duties and obligations that prevent their accounts from being exposed to any risks, and educating them about ways to protect their accounts and maintain the confidentiality of their information. Fourth: Principle of Responsible Pricing
Article (41): The Bank shall develop and duly approve internal procedures for pricing products.
Article (42): The bank is prohibited from amending any item of the costs associated with credit
facilities throughout the term of the contract signed with the client, except for those imposed by a third party, while adhering to what is stated in Article (26) of these instructions.
Article (43): The credit policy of the bank shall include what grants the client the right to choose
whether the interest rate on the intended credit is fixed or variable (in case there is a product that offers both types of interest).

Article (44): In the event that the client chooses a credit product that includes a fixed interest rate,
the bank may not solely change the interest rate throughout the term of the contract.
Article (45): In the event that the client chooses a credit product that includes a fixed interest
rate, pursuant to a contract that authorizes the bank to amend the interest rate after a certain period of the contract, then the provisions of clause (A) of Article (46) below shall apply to the period during which the bank may change the interest rate.
Article (46): A. In the event that the client chooses a credit product that includes a variable interest
rate, the bank shall link the interest rate to the pricing tool approved by the Central Bank for that purpose. B. The Central Bank may amend the pricing tool referred to in clause (A) above according to its discretion pursuant to special orders that it issues, and banks shall take all measures to ensure compliance with the requirements of these orders.
C. Banks are not permitted to set a minimum reference interest rate.
Article (47): The bank shall disclose to clients transparently the effective annual percentage rate
(Effective APR) through the credit offer and the contract signed with the client.
Article (48): When the client defaults and if the contract signed with him/ her includes a text
stating the bank’s right to collect a delay interest, it must not exceed (1%) annually over the interest rate applied at that time on the amount of each installment/ installments that the client is late in paying on the agreed due date, and the bank shall include that clearly in the contract signed with the client.
Article (49): The maximum limits of the commissions which can be collected by the bank in
return for the banking services in local and foreign currency shall be as stated in
Appendix No. (3), and the bank is prohibited from imposing any commission that
is not mentioned in this Appendix.
Article (50): Without prejudice to the provisions of Article (49) above, banks may determine the
commission rates related to credit cards, prepaid cards, safe deposit boxes, postal charges, savings products, bill payment services, issuance of cheque-books, commission for depositing and recovering cheques for collection, commissions imposed by a third party, commissions related to indirect facilities, and real estate valuation.
Article (51): The bank is prohibited from accumulating commissions on the client’s credit
account for more than three months.

Article (52): A. If there is a need for any modification/ addition on the commissions mentioned in
Article (49) above, the banks shall, through the Association of Banks, collect the
modification requests and proposals on these commissions with a statement of justification, and provide the Central Bank of Jordan with a summary about them no later than the end of the first month of each year. B. The Central Bank of Jordan shall consider the submitted requests and proposals, and inform the Association of banks of the decision taken in this regard and publish it in the Official Gazette if any of them is approved. Fifth: Principle of Appropriate Design and Delivery of Banking Services
Article (53): The bank shall set approved work procedures to identify target clients, taking into
account to include the following:
A. Designing and developing services to suit the target segment of clients and limit the risks that may affect them and the bank, and evaluate the suitability of the terms and prices of the service to their needs and requirements. B. Continuous evaluation and development of the service to take into account market developments, clients’ feedback and behaviors. Sixth: Principle of Responsible Lending/ Financing and Prevention of Over- Indebtedness
Article (54): The loan/ financing must be provided to clients in a responsible manner to protect
them from over- indebtedness. For this purpose, the bank shall adhere to the following:
A. Providing advice and counseling to clients and providing the loan/ financing that suits their capabilities and needs, explaining the risks incurred if financial conditions change for any reason, and including this in the approved work procedures for granting credit facilities in relation to the bank’s responsibility towards clients. B. Including the credit policy with the necessary controls that ensure the bank's commitment to the provisions of this principle, and using financial models and techniques based on scientific foundations and clear, transparent and documented procedures in its policy to examine the client's credit status and evaluate his/ her ability to repay.
C. Giving the subject of employee training the utmost importance to ensure
enhancing their ability to examine the client's credit status and assess his/ her ability to repay his/ her financial liabilities and avoid the aggressive sales methodology.
Article (55): Before granting credit, the bank shall examine the credit status of the client/
guarantor to assess his/ her ability to repay through the following:
A. Review the client's credit report.

B. Obtain a declaration of liabilities from the client and the guarantor, and obtain all available information and data that enable the bank to examine the credit status of the client and the guarantor to assess their ability to repay and avoid exposing them to the risks of over- indebtedness.
C. Obtaining a signed declaration from the client and the guarantor stating the
documented sources of income of each of them, and taking all necessary measures to verify this information. D. Re- examining the credit status and evaluating the client and guarantor's ability to repay each time new credit facilities are granted or the balance of the existing loan is increased, restructured or rescheduled. E. In the event that credit is denied, the bank shall explain to the client the main reasons for this and not take the credit information company or the Central Bank as an excuse.
Article (56): The bank shall not rely on any inquiry company not licensed by the Central Bank
when examining the client's credit status.
Article (57): Monthly financial liabilities are calculated as follows:
A. All monthly credit liabilities towards any party.
B. The monthly installment of the credit card at the minimum repayment percentage of the card limit.
C. Monthly financial liabilities towards any party that result in a periodic
installment, for example, but not limited to (installments for furniture, electronic devices) that are mentioned in the declaration of liabilities signed by the client.
Article (58): The bank shall make the decision of granting credit facilities based on examining
the client's credit status, relying on the client's regular income, taking into account the following:
A. Monthly credit liabilities (granted and intended to be granted by the bank). B. Other credit liabilities shown in the client's credit report.
C. Other client’s liabilities mentioned in the declaration of liabilities signed by him/
her.
D. Not relying primarily on the guarantors or collaterals, but rather on the client's regular income. E. The value of the client’s liability resulted from his/ her guarantee- if any. F. The age of the client/ guarantor. G. The client's desire and intention to repay outstanding loans from the requested loan. H. In the event that the loan is joint with other clients, the credit status of each client shall be examined and his/ her ability to repay shall be evaluated separately, and

thus the maximum amount that each client can bear to repay the loan shall be estimated.
Article (59): The bank shall include in its credit policy of the retail portfolio the following items
below, and shall adhere to them:
A. The applied maximum limits with respect to the Debt Burden Ratio (DBR) for each type of the credit facilities, with clarifying the principles to calculate them clearly. B. The applied maximum limits with respect to the Over- Indebtedness Ratio, with clarifying the principles to calculate them clearly.
C. A large portion of the credit that will be granted shall not be paid in one
installment at the end of the credit period (Balloon payment) unless clear, specific and duly authenticated sources of payment are provided to settle the aforementioned payment. If there are, the bank shall inform the client and state this in the loan statement. D. The maximum credit amount and period for each credit product.
Article (60): When studying the credit application, the bank shall take into account the ratios
mentioned in clauses (A) and (B) of Article (59) above, in addition to the following:
A. Liabilities that have been incurred and that may be incurred by the client because of his guaranteeing any facilities. B. Adjustments that may occur to the variable interest rate.
Article (61): A. The Central Bank may issue orders regarding the maximum limits for the maturity
periods of the entire credit (Original Maturity) granted within the retail portfolio at its discretion, and banks shall take all necessary measures to comply with the requirements of these orders. B. The bank must not grant loans for the purpose of (improving and developing properties, unifying the client’s internal and external liabilities (purchasing loans) or granting cash amounts, etc.) against a mortgage on an existing property in favor of the bank for a period exceeding the maximum limits referred to in clause (A) above.
C. The provisions of clause (B) above do not apply to banks repurchasing residential
loans secured by real estate mortgages and lease-to-own for residential purposes from other banks.
Article (62): The bank shall adhere to the maximum limits of the debt burden ratio and the over￾indebtedness ratio specified in its credit policy initially and continuously. The bank
is responsible for any exceeding of these ratios as a result of weakness or negligence on its part in examining the credit status of clients or as a result of a change in the interest/ return rate.

Article (63): In the event of the client’s inability to pay, the bank shall:
A. Not impose any commissions, after six months from the date of failure to pay. B. The amount deducted from the guarantor shall not exceed in any case the debt burden ratio specified in the bank's credit policy. Seventh: Principle of Awareness, Education and Building Financial Capabilities
Article (64): The bank shall take into account the following:
A. Providing appropriate mechanisms to build the financial capabilities of clients, and seeking to raise their level of financial awareness and culture to enable them to make financial decisions that are in their best interest, including, for example, making a short video on the most important terms of the credit contract and providing it to the client and guarantor when submitting the credit offer. B. Training and qualifying employees responsible for dealing with clients in a manner that enables them to inform clients of their rights and responsibilities, orient them with regard to banking services, and answer all their inquiries in a clear and comprehensive manner, including the risks that may result from using the services, in a manner that enables them to make decisions that suit them and their financial situation.
Chapter Two: Credit Cards for Retail Portfolio
Article (65): Without prejudice to the previously mentioned articles, and in case the credit is
granted by virtue of a credit card, the bank shall adhere to the following clauses and shall explain them to the client upon entering into agreement and shall include in the related contract/ application what expresses them:
A. The maximum interest/ return rate shall not exceed (1.5%) on a monthly basis. B. The cost of granting/ renewing the card, the interest/ return rate applied by the bank, the minimum limit of the amount due on a monthly basis and/ or the percentage thereof of the balance, any costs to be imposed in case of delaying in payment or in case of exceeding the maximum limit of the credit card, and cost of cash withdrawals.
C. The period required for providing the client with a clearance certificate of the
credit card after paying the balance thereof, and the amount required to be deposited if the client requests an immediate clearance certificate. D. Providing the client with telephone numbers that can be called when needed, provided that one of these numbers must be available around the clock. E. Stopping the card immediately if the client informs the bank of the loss of the card, and exempting the client from any responsibility for any transactions that occur after the notification.

F. Informing the client of any transaction on his/ her account whether credit or debit, including charging commissions, immediately when executed without any delay by sending short text messages (SMS) to the client's phone number approved by the bank. G. Notifying the client through the available means agreed upon with him/ her of the date of renewal of the card and the related commissions one month before its expiration date. H. Defining the period during which the client can object to any of the transactions debited on the card.
I. Providing the client with a free monthly account statement, including the
installment to be paid (payment), the due date of the payment, the interest/ return rate, and the period for objecting to any of the transactions in the statement, with an explanation of the mechanism for objection. J. In the event that the client objects to any transaction of which he/ she is informed or that is stated in the account statement, the bank shall verify that promptly and without any delay and shall return the amounts objected to in case the objection was proved to be true, and without charging the client any costs. This shall apply to any similar transactions made through other cards, including transactions made through cards via the Internet. K. The period during which the client can apply to stop renewing the credit card without incurring any additional costs.
L. The bank shall include all cards holding clients in any new free procedures
related to the security, safety and protection of cards and without incurring them any additional costs.
Article (66): The bank shall apply the provisions of clauses (D), (E), (F), and (L) of the above
article to debit cards (ATM cards and prepaid cards).
Chapter Three: Dormant Accounts
Article (67): A. The clients' accounts with credit balances at the bank shall be considered dormant
accounts in case no withdrawal or deposit transactions have been made, and it is impossible to identify the account holder through his/ her other dealings with the bank and after exerting all means of communication with him/ her, and after the lapse of the following specified periods from the date of the last withdrawal or deposit transaction:

1. One year for current and on- demand accounts.
2. Two years for savings accounts.
3. Three years for term accounts and notice account.

B. The bank shall take proactive measures before the date of freezing the client accounts mentioned above, so that efforts are intensified in communicating and at a minimum contacting the client and sending a short text message (SMS) at least one month before the date of freezing.
C. Any transaction on any of the client's accounts with the bank shall be a new
starting point for calculating all the periods set for freezing these accounts. D. If the period specified for freezing any of the accounts expires, the account will be frozen, and any transaction that occurred after that in the client’s other accounts will not have an impact on the dormant account. E. Charging of commissions and interests shall not be deemed a reason for activating the account. F. Incoming transfers to the client's account, including salary transfer, as well as debiting monthly installments shall not be deemed a reason for activating the account. G. The bank's implementation of any new automated banking system shall not lead to changing the date of the last transaction made on the account.
Article (68): When all client’s accounts at the bank are deemed dormant, the bank shall:
A. Make netting between dormant accounts and any other debit accounts or outstanding liabilities on part of its holders at the bank, with suspending the ATM cards, payment cards and credit cards of the client. B. Set automatic supervisory controls that do not allow access to the account, signature forms, or any other procedures unless under strict central supervision and monitoring.
C. Transfer dormant accounts files and storing them at a place that provides the
necessary security requirements, and at a level of supervision higher than the level applied to other files. In case the files are electronically archived, supervisory controls that do not allow access to the file or any other procedures except under strict central supervision and monitoring must be established. Calculating interest or profits on these accounts according to the contract in effect shall continue in the meanwhile.
Article (69): In the event that all or one of the client's accounts are dormant, the bank shall continue
to attempt to contact him/ her and document that.
Article (70): When any of the client’s accounts is dormant, the bank shall continue executing the
fixed (periodic) payment orders previously requested by the client and debit the loan installments.
Article (71): When the account is dormant, the bank shall suffice with collecting the dormant
account commission stipulated in Appendix No. (3).

Article (72):
A. Any transaction on the dormant account is not considered a reason to make it active, except for the client personally or his/ her representative, by virtue of a notarized power of attorney or an authorization approved by the bank, to visit the bank after the account is considered dormant in order to reactivate the account. The bank shall then reactivate the account after verifying the identity of the client or his/ her representative. It is necessary for the bank to send a short text message (SMS) to the client immediately after activating the account. B. It is necessary to take all due diligence measures stipulated in the applicable instructions for Anti- Money Laundering & Countering the Financing of Terrorism, or any instructions that replace them, in the event of depositing into the dormant account.
C. Cashing cheques withdrawn by the client on the dormant account shall not be
deemed a reason for activating the account, with the necessity for allowing cashing by a responsible employee entrusted with these powers. D. No withdrawal or transfer from the dormant account shall be allowed unless the client identity is verified by the means the bank deems appropriate, or the presence of his/ her representative under a legal power of attorney or authorization approved by the bank, or the presence of the authorized signatory on the account in the case of a legal person.
Article (73): The bank shall set clear working procedures with regard to managing dormant
accounts, which shall, in addition to these instructions, include the method of communication with holders of dormant accounts on the level of branches and the headquarter and the periodical reports to be submitted to the general/ regional management of the bank in this respect.
Article (74): The bank shall exercise due diligence in terms of inquiring about the client’s death
indicator when his/ her account is frozen and it is impossible to identify him/ her by all legally available means.
Article (75): Banks shall comply with the provisions of the Law on Government Acquisition of
Funds by prescription that lapsed No. (35) of 1985 and its amendments, or what replaces it, with the bank maintaining annual reports in this regard.
Chapter Four: General Provision
Article (76): The bank shall clearly announce the working hours of the branches at the main
entrance of each branch and on the bank's website, and shall adhere to the announced working hours.

Article (77): The bank shall provide communication channels available around the clock to enable
the client to report any case of loss, theft, fraud or hacking of any of his accounts and banking cards.
Article (78): The bank shall provide the short message service (SMS) to all retail clients without
any additional costs, and such that the service is linked to the transaction nature (credit/ debit/ commissions/ fees/ interests...etc.) and is not limited to withdrawal transactions only, and is immediate upon the execution of any transaction on the account.
Article (79): Taking into account what is stated in Article (78) above, the bank shall, with regard
to joint accounts, send short text message (SMS) to all parties of the account.
Article (80): The bank shall provide the Central Bank with the following:
A. The approved credit policy upon any amendment thereto or upon request. B. The electronic links referred to in the provisions of these instructions and any amendment thereto, to be published on the Central Bank’s website at least (7) working days before activating any amendment to the link.
Article (81): The bank shall set clear and approved internal procedures for the employee to follow
in reporting any violation or infringements against clients by other employees, in a manner that ensures the confidentiality of the identity of the employee who reports the violations and protects him/ her from harassment.
Article (82): The bank shall establish appropriate mechanisms to cooperate as much as possible
with clients, by applying clear and modern mechanisms such as (Video Call) to facilitate updating their data and activating their dormant accounts, in accordance with the applicable Instructions for Regulating Know your Customer Procedures and dealing with him/ her electronically or any instructions replacing them.
Article (83): These instructions shall apply to Islamic banks in a manner that does not conflict
with their work nature in accordance with the principles of Sharia.
Article (84): The bank shall not overdraw the client's account for any commission except for the
commission on returning cheques due to insufficient balance, in which case the client's account (drawer) shall be overdrawn in accordance with Appendix No. (3).
Article (85): In case the bank violates any of the provisions of these instructions, the bank shall
be liable to the procedures and penalties by virtue of the provisions of the Central Bank of Jordan Law No. (23) of 1971 and its amendments and/ or the Banking Law No. (28) of 2000 and its amendments.

Article (86): The bank is responsible for adhering to the provisions of these instructions if the
banking service is provided to the client by a third party.
Article (87): The bank shall set appropriate and effective internal control and supervisory systems
to ensure compliance with the provisions of these instructions.
Article (88):
A. The provisions of these instructions shall apply to all bank clients unless the text indicates that their provisions are limited to retail clients. B. For the purposes of these instructions, small and micro enterprises shall be treated as retail clients unless a legislation is issued specifically for this category.
Article (89):
A. The provisions of these instructions shall apply to all banking services that will be provided or renewed pursuant to a contract/ appendix signed with the client after the effective date of these instructions. As for contracts concluded before the effective date of these instructions, the provisions of the instructions and circulars in force at that time shall apply. B. Clients’ complaints shall be handled in accordance with the Instructions of the Internal Procedures for Handling Consumers’ Complaints of Financial and Banking Services Providers No. (1/ 2017) dated 28/8/2017 or any instructions replacing them.
Article (90):
A. The instructions and circulars that conflict with the provisions of these instructions shall be cancelled, including the following instructions and circulars:

• The Instructions on Dealing with Customers Fairly and Transparently No. (56/ 2012)
  dated 31/10/2012.

• The amendment Instructions for the Instructions on Dealing with Customers Fairly and
  Transparently No. (57/ 2013) dated 20/5/2013.

• Clause (First) of circular No. (10/2/4/1454) dated 31/1/2000.

• Circular No. (10/2/8518) dated 17/7/2011.

• Circular No. (10/2/4/6226) dated 20/5/2013.

• Circular No. (10/2/4/1763) dated 11/5/2015.

• Circular No. (10/2/4/15996) dated 27/12/2015.

• Circular No. (10/2/4/6027) dated 25/4/2016.

• Circular No. (10/2/4/7293) dated 24/5/2016.

• Circular No. (10/2/4/7981) dated 9/6/2016.

• Circular No. (10/2/4/8352) dated 20/6/2016.

• Circular No. (10/2/4/12854) dated 6/10/2016.

• Circular No. (27/2/9421) dated 17/7/2018.

• Circular No. (27/1/10091) dated 12/8/2020. - Circular No. (27/2/14180) dated 19/9/2021. - Circular No. (27/1/16209) dated 24/10/2021. - Clause (Second) of circular No. (27/1/4612) dated 15/3/2022. - Circular No. (27/1/6792) dated 20/4/2022. - Clause (Third) of circular No. (10/3/248) dated 5/1/2023. - Circular No. (27/6/15380) dated 3/9/2023.
  B. The provisions of the following circulars shall remain in effect: - Circular No. (10/2/4/14394) dated 7/11/2016. - Circular No. (27/3/2502) dated 15/2/2018. - Circular No. (27/1/4872) dated 27/4/2020. - Circular No. (27/1/5780) dated 22/3/2023. Governor Dr. Adel Al Sharkas

Appendix No. (1)
(Effective Annual Percentage Rate (Effective APR))

1. The effective APR shall be calculated based on the following equation:
   i=n
   PV =∑ PMT i
   (1+X)i/n i=1
   PV : The present value of the loan minus the costs specified by virtue of the contract that are deducted in advance from the loan. X : Monthly effective percentage rate. PMTi : The value of the monthly installment owed by the client (including the value of the repaid portion of the credit in addition to nominal interests and all the costs specified by virtue of the contract). N : Total number of annual installments. i : The number of the installment owed by the client
2. The Monthly Effective Percentage Rate is converted to the Effective Annual
   Percentage Rate by the following equation:
   )-1
   Effective APR= ((1+ X)

Appendix No. (2)
Fact Sheet
(Name of Product)
Bank Name: ............................
This document is a summary of the key information of the loan/ financing that you want to obtain. Prior to signing, please read thoroughly this document and the contract and understand all the conditions stated therein.
Client Name: ............................
Guarantor Name: ............................
Details of the Loan/ Financing
Type of Loan/ Financing:
Product Name
Total value of loan/ financing
Purpose of the Loan
The following must be clarified:
Whether it is fixed or variable. -
If it is fixed for a certain period and then becomes variable. - If it is a preferential price for the first years. - If it is variable, specify the fixed part (margin) and variable -
part
Interest/ return rate
Periodic adjustment of the interest rate
Installment amount
Loan period/ Number of installments
The due date for the monthly installment
It should be clarified what this rate constitutes Effective Annual Percentage Rate (Effective APR) Collaterals Grace period Indicating that the change in the variable interest/ return rate will lead to a change of installments in terms of amount, number or both

Commissions and Expenses
Credit granting commission One time upon granting Stamp duties Insurance Others (including property valuation commission) Total amount to be paid Other Commissions Postponing the repayment of an installment commission late payment fee late interest Early settlement commission and terms Use simple warning phrases to clarify the consequences and measures that will be taken if the client is late for payment. Additional Information Indicating client’s right to obtain a copy of the contract to be signed to read it before the signing date by a sufficient period in addition to his/ her right to obtain a copy of the contract and the payment
schedule after signing the contract. Indicating the client's right to terminate the contract before using any part of the granted amount
within (5) working days from the date of signing the contract, provided that the client bears all costs associated with the credit contract such as commissions and fees, without incurring any interest or early repayment commission. Indicating the existence of a complaints unit in the bank and its contact numbers Indicating that this form is free Acknowledgement, understanding and signature Address: Client Phone Number:
Client Name: Date: Signature:
Guarantor Name: Date: Signature:
Employee Name: Date: Signature:
Use simple warning phrases to clarify the consequences and measures that will be taken if the client is unable to pay and reaches the stage of default.

Appendix No. (3)
Maximum limits of commissions on banking services for retail clients provided in local and/ or foreign currency

Type of Commission Maximum limits in JOD or its equivalent in foreign currency Cash withdrawal over the counter:

• If the client does not have an ATM card (based on the
  bank’s decision) or if the ATM malfunctions (None)
• If the client does not have an ATM card, upon his
  request (0.5) JOD
• In case the client owns an ATM card.
• (0.5) JOD for amounts equal to or less than the
  daily withdrawal limit from the ATM determined by the bank
• (None) for amounts exceeding the daily withdrawal
  limit from the ATM determined by the bank
  Issuing a certificate/ letter upon the client’s request (5) JOD Signature authentication (2) JOD Issuing a letter in favor of the Ministry of Interior for non- Jordanians (15) JOD Salary transfer According to the legislation in force in this regard Issuing a certified Cheque/ manager cheque (5) JOD Returned cheques due to insufficient/ without balance (debited to the drawer) (20) JOD for the cheque whether offered over the counter or through electonic clearing, and only once for the same cheque, regardless of the number of times it is presented Returned cheques on the drawer account for technical reasons (2) JOD/ cheque Returned cheques from other banks (deposited in client account) (None) Suspending a cheque (10) JOD/ cheque Settlement of returned cheques (10) JOD/ cheque Mortgage Release (real estate, auto, other) (None) Judicial and banking power of attorney registration (5) JOD/ power of attorney Statements of account:
• Periodical statements for the agreed period
• An additional statement for a period of one year from
  the application date or less.
• An additional historical statement for more than a year
  after the application date.
  (None)
  (0.25) JOD/ page
  (0.5) JOD/ page

Type of Commission Maximum limits in JOD or its equivalent in foreign currency Photocopy Of documents or cheques (0.5) JOD/ document or cheque Minimum Balance commission:

• Current salary account (None)
• Current and on- demand account/ saving account (1) JOD/ monthly for balance below (100) JOD
  Dormant accounts
  (2) JOD/ monthly, with a maximum of (6) JOD on all client accounts It is prohibited to charge it from the deceased client account once the bank is notified of the death case Standing Orders:
• Within the client accounts (None)
• For other accounts within the same bank (1) JOD/ order
• For other entities According to the legislation in force in this regard
  Issuing/ renewing ATM card (None)
  Issuing/ renewing a subsidiary ATM card upon the client’s request (5) JOD Issuing a replacement ATM card for a lost or damaged one (5) JOD Issuing a PIN for a replacement ATM card (1) JOD Exceeding credit card limit (10) JOD/ monthly Objection to a transaction executed on the ATM or credit card (5) JOD and shall be returned to the client in case the objection was proved to be true Application for watching a certain ATM video (5) JOD Credit granting commission 1% of the credit amount for one time only upon granting.
• (1%) of the increase in the credit amount (top up),
  with the client being exempted from the early repayment commission if the bank’s system operates by granting new credit from which the old one is repaid for this purpose. Credit inquiry commission (None) Delaying the repayment of an installment (including credit card dues) (10) JOD Postponing the repayment of an installment (including credit card dues) (5) JOD Application for amending the conditions of the financing or securities upon the request of the client (5) JOD

Type of Commission Maximum limits in JOD or its equivalent in foreign currency Early settlement: - The remaining period until last due installment is a year or less (None)

• The remaining period until last due installment is more
  than a year (1%) of the amount to be paid
  Deposit withdrawal before maturity
  The provisions of the instructions on interest on deposits and facilities No. (14/ 2002) dated 15/12/2002 apply, or any instructions replacing them Automated Banking Services Commission (Includes services provided for debit cards and electronic banking services) (0.5) JOD/ monthly at the client level Foreign currency exchange/ deposit commission:
• At all branches (0.3%)
• At border posts (2%)
  Issuing a circular on a cheque/ cheques under a security report (regardless of the type of currency) (5) JOD Opening an account for domestic workers (10) JOD, provided that no other commissions are charged Correspondence’s archiving (None)