Sunday, November 3, 2024
Saudi Central Bank prohibits unapproved deductions from Customer accounts
According to the Saudi central bank, financial institutions in the kingdom cannot withdraw funds from their customer accounts unless instructed to do so by a judge or court, or unless the client has given permission to do so. Trending : Saudi Arabia denies rumors of rising deaths at workplaces
Such deductions are also forbidden if the financing contract does not contain any provision allowing withdrawal of funds, according to the Saudi publication Okaz, which cited revised draft regulations prepared by the central bank.
Additionally, unless there is a rule or judicial decision, or the customer has given clear approval via one of the trustworthy, documented communication methods, no more than one installment for each financing contract can be deducted from the salary.
It is also forbidden to deduct installments prior to the agreed-upon date. Most Viewed : Fines on abusive behaviors at workplaces
Schedule of deductions :
For clients who receive a monthly salary, the deduction date must coincide with the deposit date. For clients who do not receive a regular salary, the deduction date must be mutually agreed upon between the customer and the financing institution. This will include situations where the date of the salary deposit is subject to change, such as when it falls on a weekend or falls within the Eid (feast) holidays.
The central bank's draft also forbids collection costs or overdue fines beyond the amount owed, with a maximum value of one installment during the whole financing term.
Maintaining stability in financial transactions and protecting the rights of individuals and financing institutions are the goals of updating laws for resolving customers debts, according to lawyers.
Attorney Abdullah Mohammed claims that this change is part of a larger effort to better safeguard clients private and sensitive information. Follow Saudi Expatriates News on X
Saudi Central Bank prohibits unapproved deductions from Customer accounts
