Saudi cbank reveals new rules aimed at protecting borrowers

The Saudi Arabian Monetary Agency (SAMA), the kingdom’s central bank, has published on Monday new regulations aimed at better protecting customers dealing with financial firms.

The new rules, set to come into effect Jan. 1, 2016, require all financial companies in the country to provide detailed disclosures to clients ahead of singing any finance agreements, such as extra fees, administrative costs, annual interest rates, as well as the customer’s right to end the contract or pay off the debts before the due date.

Lenders must also notify their clients of any amendments to terms and conditions under any agreement at least 30 days prior to making changes. They are also not permitted to make any adjustments to fees or commissions after signing agreements. Clients have the right to protest within 10 days from receiving a notice of a change of the agreement.

In addition, clients have the right to ask for counsel from lenders when facing financial troubles or when deciding to choose from products available to them. Lenders should also take into consideration the humanitarian situation of clients, or other situations that may have changed the circumstances of customers.