Article 15: General Requirements and Obligations of Creditors and Borrowers

General Requirements and Obligations of Creditors and Borrowers Consumer Financing granted on the basis of any security other than the deduction of salary or pension payments (e.g. against lien of deposits or assignment of other regular earnings or pledge of collateral) is not subject to the provisions under Article 14(1) . A Creditor must carry out proper risk management procedures such as the use of credit scoring models for the granting or renewal of all Consumer Financings and must assign appropriate credit limits to its Borrowers. Prior to granting a new Consumer Financing, a Creditor must have received a Borrower request through Authenticated Communication or the execution of a Financing Contract. A Creditor may not increase the Financing limit of its Borrower without receiving a request through Authenticated Communication from its Borrower seeking such an increase. Each such increase/amendment in the Financing Contract requires execution of a new Financing Contract. Creditors are required to obtain knowledge of the purpose of the Consumer Financing from the Borrower and document that. This confirmation must be a part of a written acknowledgment by the Borrower clearly stating that he has fully understood the terms and conditions and confirms the execution of the respective Financing Contract. Creditors are only allowed to refinance Consumer Financing accounts of those Borrowers who have repaid at least 20% of their original Amount of Financing under their Consumer Financing account. Creditors refinancing the Consumer Financing accounts of their Borrowers must fully comply with the disclosure requirements under Section 5 , Additionally, the Borrower must be provided with a break-down of the refinanced amount, clearly identifying the refinanced amount that will credited to his/her account, net of all identified fees and charges and the settlement of the original outstanding balance prior to a Refinancing. Borrowers opting for early retirement are required to ensure that their pension payments continue to be routed to the Creditor in the event of outstanding balances under their Consumer Financing account. A Creditor may require a suitable undertaking from the Borrower affirming the foregoing arrangement. Additional features or services requiring additional payment of fees and charges which are optional to the primary product features of the Consumer Financing may not be added on or embedded into the Consumer Financing account and must be clearly represented as an Optional Feature. A Borrower must have indicated his/her desire to obtain such services by Authenticated Communication before their inclusion in the account. Creditors must also clearly disclose all fees and charges for these services to the Borrower within their offer for such Optional Features. A Creditor must promptly advise its Borrowers of the following amendments and or changes in their Financing Contract by giving them at least 30 Calendar Days prior written notice: (a) any increase of the annual fees and/or handling fees charged to the Borrower; (b) an increase in recurring fees or charges (c) any new fees or charges. (d) any other changes. The Borrower may terminate the relevant Financing Contract with the Creditor if he/she does not agree to such amendment, change or modification by notifying the Creditor of his/her desire to terminate the Financing Contract within ten (10) Calendar Days after his/her receipt through Authenticated Communication of the notification of the aforementioned changes, subject to full settlement of all outstanding balances on the Consumer Financing account. The aforementioned notice must advise Borrowers of the 10 Calendar Day termination period. A Creditor engaging in Outsourcing any component of its Consumer Financing Business must comply with the Rules on Outsourcing issued by SAMA. A Creditor is required to implement a clearly defined Code of Conduct for employees engaged in roles involving sales and marketing of Consumer