Regulatory Alerts2023-02-08
Added · Updated
Model Retail Consumer Finance Contract
The Saudi Central Bank issued a mandatory standard contract for individual retail consumer finance to protect customers, enhance transaction fairness, and reduce contractual discrepancies among financing entities. The document mandates that all financing companies operating in the Kingdom adopt this uniform format by July 1, 2023, prohibiting the execution of any non-compliant agreements. It establishes strict requirements for transparency, including standardized disclosure of financing costs, clear procedures for default and early settlement, and defined consumer rights regarding contract termination and data privacy.
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