The most important violations of the credit information law

The most important violations of the credit information law

Credit information is a fundamental pillar of financial transactions within the Kingdom of Saudi Arabia, as it is relied upon to assess the creditworthiness of individuals and establishments. 

The Credit Information System and its implementing regulations have established precise controls to ensure the accuracy of credit information and protect the rights of individuals. They have also placed clear obligations on credit information companies. 

However, some violations may arise as a result of non-compliance with these controls, which may reflect negatively on service providers and consumers.

If you have a problem with your credit report or a violation that affects your record, don’t let it get worse. 

From the office of lawyer Abdul Majeed Al Rashid, you can contact a specialized administrative lawyer who will help you understand your legal situation and take the correct measures quickly and easily.

What is meant by credit information law?

What is meant by credit information law?

It is a system that aims to establish the general foundations and controls necessary for collecting credit information about consumers, whether individuals or companies, and regulating the methods of exchanging and protecting it.

This system applies to companies and governmental and private entities that have credit information.

What is credit information?

Article 1 of the system defines credit information as information and data about the consumer related to his credit transactions, such as loans, installment purchases, rentals, futures sales, credit cards, and the extent of his commitment to payment or not.

What are the obligations of companies and entities subject to the provisions of the law?

• Maintaining the confidentiality of consumers’ credit information and may not be published or used for any other purpose.
• Commitment to providing information to consumers about the procedures followed when applying for any credit transfer.
• Establish specific procedures to address consumer complaints.
• Government agencies with credit information are obligated to provide it to licensed companies.
• Companies are obligated to collect, provide, exchange and protect credit information among themselves.

What are consumer rights?

What are consumer rights?

• According to Article 43 of the Executive Regulations of the Credit Information System, the consumer has the right to know the credit information contained in his credit record without financial compensation in the following cases:
  • When requesting his credit record the first time.
  • Taking a negative decision against him in accordance with what is stated in the regulations.
  • If the consumer is a victim of fraud.
  • If the consumer’s credit record includes false information.
• The consumer has the right to know the name and address of the person who inquired about his credit record during the last two years, and he also has the right to file a complaint if his credit record contains incorrect information, based on what is stipulated in Article 44 of the regulations.
• The consumer has the right to add information to his credit record that clarifies his personal point of view on the information contained therein, in accordance with Article 9 of the system.

Dealing with credit information violations requires a thorough understanding of systems and procedures. 

A specialized administrative cases lawyer from the office of Lawyer Abdul Majeed Al Rashid can help you review your credit report, file an objection regularly, and protect your rights before the competent authorities.

“Contact a qualified attorney now to ensure the right step is taken”

What are the violations of the credit information law issued by the Monetary Agency?

Article 12 specifies the acts that constitute a violation of the provisions of the system, which are:

• Carrying out the activity of credit information companies without obtaining a license.
• Companies violating licensing terms and regulations.
• Any company, governmental or private entity, or one of its employees discloses confidential credit information during his work or after leaving work.
• Using or exploiting credit information for any purpose that is illegal or in violation of the provisions of this system.
• The company or entity is late in updating credit information beyond the deadlines specified in the executive regulations of the credit information system.
• The company, government or private entity does not correct the error immediately after it is discovered.
• Providing false or fraudulent data about a consumer.
• Failure to provide the required credit information or being slow or late in providing it beyond the specified deadlines.
• Any other violation of the provisions of the system and its executive regulations.

What are the penalties for violating the provisions of the credit information law?

Article 13 of the Credit Information law stipulates that anyone who commits any violation of the provisions of this law and its executive regulations shall be punished with one or more of the following penalties:

• A fine not exceeding one million Saudi riyals, and the maximum fine shall be doubled in the event of recidivism.
• Temporarily suspend the license.
• License cancellation.

Who is the body supervising the implementation of the provisions of the Credit Information Law and its executive regulations?

The Central Bank of Saudi Arabia (formerly the Monetary Agency) is responsible for supervising the implementation of the provisions of this system and, in particular, is responsible for carrying out the tasks stipulated in Article 11 of the system, namely:

• Determine the conditions that must be met by companies wishing to provide credit information services, their licensing controls and procedures.
• Issuing, renewing and amending licenses to establish credit information companies.
• Establishing mechanisms for supervision and control of the work of credit information companies.
• Controlling and investigating violations and prosecuting violators before the committee.
• Determine the measures that must be taken regarding credit information in the event that the license of the Saudi Credit Information Company is cancelled, dissolved, liquidated, or bankrupt.

What is the jurisdiction of the committee to look into violations of the credit information law?

Article 14 of the system clarifies the powers of the committee examining violations of the credit information law, which are:

• Considering violations of the provisions of this system.
• Imposing penalties on violators.
• Resolving disputes and disagreements that arise between consumers, companies, and government and private entities.

Do I have the right to object to the committee’s decisions?

The Committee’s decisions may be objected to before the Board of Grievances within 60 days from the date of notification.

Administrative lawyer from the office of lawyer Abdul Majeed Al Rashid

Given the importance of your credit history and its direct impact on your financial life, dealing with any violation must be done quickly and with legal awareness. 

Hiring a competent lawyer not only helps you correct errors, but also ensures that your rights are protected and any future effects are avoided.