Consumer Awareness Procedural Manual

2nd Section

The Saudi Credit Bureau (SIMAH) has developed this procedural manual to publish it after the approval of Saudi Central Bank (SAMA). This Manual is intended to educate consumers about their rights guaranteed to them by the Credit Information Law and its Implementing Regulations.

1st Section

1.1 Introduction 1.2 Concepts 1.3 Definitions 1.4 Regulations

2nd Section

2.1 Saudi Credit Bureau 2.2 Tasks 2.3 Objectives 2.4 Credit Report 2.5 Office Hours 2.6 Supervision

3rd Section

3.1 Consumer Rights 3.2 Credit Principles 3.3 SIMAH Obligations 3.4 Member’s Obligations The Saudi Credit Bureau (SIMAH) has developed this procedural manual to publish it after the approval of Saudi Central Bank (SAMA). This Manual is intended to educate consumers about their rights guaranteed to them by the Credit Information Law and 4th Section its Implementing Regulations.

1.1 Introduction

The Saudi Central Bank (SAMA) is the regulator, supervisor and licensor of the financial institutions to work in the Kingdom of Saudi Arabia (banks and finance companies including leasing, mortgage, insurance, money exchange companies and credit information). In this context, SAMA monitors and oversees the various products offered to customers by financial institutions under its supervision. Since the issuance of the its Article of Association in 1952 and Banking Control Law in 1966, SAMA has been working to protect the interests of the consumers and make sure that financial institutions deal with them with credibility and fair treatment. Many countries and international bodies such as the G-20, the Financial Stability Board (FSB) and the Organization for Economic Co-operation and Development (OECD) are considering amending and issuing new standards in the area of consumer protection. Due to the growth and development of the financial sector in Saudi Arabia, SAMA will continue reviewing these developments and issue appropriate regulatory directives to develop customer protection principles appropriately. SAMA aims at ensuring that the consumer who deals with the financial institutions is treated fairly, honestly and safely, and provided with all necessary tools to obtain financial services with ease and comfort. Among the most important rights are the credit rights which SAMA seeks to ensure to preserve in accordance with the Credit Information Law issued by the Council of Ministers and the Implanting Regulations.

4 1st Section

1.2 The Concept of Saudi Credit Bureau (SIMAH)

Saudi Central Bank (SAMA) Regulation & Supervision

Financial Institutions Paymnt Systems Credit Reporting (Banks, financial (SADAD, SAREEA) Bureau (SIMAH) Companies)

This model demonstrates the importance of the credit information sharing and the role of SAMA in regulating and supervising the activities of SIMAH in Saudi market and to make sure they comply with the laws and regulations, such as Credit Information Law and Implanting Regulations. The credit information bureaus, payment systems firms and the intermediary financial systems are considered as the key elements in the financial infrastructure of any country. High quality of the financial infrastructure affects the growth and contribution of the private sector which ultimately will contribute the confidence of lenders and investors and enable them to assess and manage risks. The Saudi Credit Bureau (SIMAH) is considered to be an important pillar of the financial infrastructure in charge of providing necessary credit information to enable both borrowers and lenders alike. Having an excellent credit report doesn’t guarantee approval, because lenders still consider other factors like the consumer’s income and debt. However, a good credit report increases the consumer’s chances of being approved for new credit. Credit reports provided by SIMAH help lenders too in the decision-making process to improve the ability to analyze consumers’ credit risks and assess the solvency of the borrowers based on credit information. In addition, SIMAH’s data, demographic information, financial and non-financial information, helps to extrapolate the behavior of the consumer based on sophisticated mathematical models using these data to support the lending decision, and risk management. SIMAH big data, demographic information, financial and other variables available in credit reports help lenders to extrapolate the borrower›s credit behaviors based on complex mathematical models that use the variables and data of the credit report as key indispensable inputs to support lending decision and risk management

5 Consumer Awareness Procedural Manual

1.3 Definitions

The Credit Information Law (CIL) issued by the Royal Decree No. M/37 The Law dated 05/07/1429H corresponding to 08/07/2008.

Regulations The Implementing Regulations (IR) of the Credit Information Law.

Central Bank Saudi Central Bank (SAMA).

Credit Any consumer information or data related to his/her credit Information transactions.

Saudi Credit A Saudi Credit information Bureau licensed to collect credit Bureau (SIMAH) information and save it to share it with its members.

Any government or private entity which is party to a credit informa- Member tion exchange contract with at least one credit information bureau.

Consumer Any natural or corporate person engaging in credit transactions.

A report issued by credit bureaus containing consumer credit Credit Report information.

Credit information records maintained by government entities such as records of funds and banks offering government loans, judicial au- Public Record thorities, government committees, bankruptcy and insolvency records and the like.

Negative Any decision a member will take upon a consumer’s credit record decision against his/her interest.

Negative Any information provided by a member based on the consumer’s Information credit report against his / her interest.

The Committee Credit Information Dispute & Settlement Committee.

6 1st Section

1.4 Regulatory Framework

The Credit Information Law was issued by the Royal Decree No. M/37 dated 5/7/1429H corresponding to 08/07/2008 upon the Resolution of Council of Ministers Bo. 188 dated in 4/7/1429H. This Law shall be applied to companies, members and government and private entities maintaining credit information in accordance with Article No. 3 of the Law. Implanting Regulations have also been issued according to the Central Bank’s Governor Resolution No. 1 s / 13709 dated 22/09/1432H corresponding 17/08/ 2011 as a complementary to the Law. In its Provisions (2,3,4) of Article 3, The Law has entrust- ed to the Central Bank the task of licensing, supervising, regulating and controlling credit bureaus. You can find the Law and Regulations on SIMAH website by visiting (SIMAH link to Laws + Regulations).

7 Consumer Awareness Procedural Manual

2.1 Saudi Credit Bureau (SIMAH)

SIMAH was established on 2002 and started its operation on 14 April 2004 as a credit information bureau licensed to collect and maintain credit information on consumers and provide the same to members upon request.

2.2 Tasks

SIMAH is tasked with collecting and maintaining credit information on consumers and providing the same to members upon request.

2.3 Objectives

1. Providing an effective financial infrastructure that can be relied on to ensure sustainable economic growth. 2. Contributing to sound financial infrastructure to ensure growth and contribution of the private sector so as to rise confidence of lenders and investors, decrease their uncertainties and improve their abilities to assess and manage risks. 3. Providing accurate credit information necessary to support borrower’s decision-making process to improve his/her ability in analyzing and evaluating the credit risk of the borrower’s solvency based on credit information. 4. Collecting and analyzing data, demographic information, financial and non-financial variables to help lending institutions and related parties in extrapolating borrowers’ behaviors based on sophisticated mathematical models using available data to support the lending decision and risk management. 5. Reducing credit information asymmetries ; whereas information disparities between the lender and the borrower often lead to a high risk of lending and a high cost of borrowing due to the lending decision taken primarily based on the accuracy of the credit information. 6. Reducing the loan default rates, increasing collection ratios, as well as facilitating accessibility to finance at a cost that is risk- based pricing with great accuracy. 7. Supporting the monetary policy and its instruments. Lenders’ ability to price risk in a dynamic, accurate and differentiated manner according to the likelihood of a borrower’s defaulting allows one of the most important monetary policy instruments ; namely interest rates, to directly affect economic behaviour such as borrowing, investment and consumption rates. 8. Uplifting credit quality and credit expansion to stimulate economic growth.

8 2nd Section

2.4 Credit Report

The Saudi Credit Bureau (SIMAH), in the process of evaluating consumers’ creditworthiness and by providing credit reports, does not provide any opinion, decision and/or comment that would oblige any member to grant or deny any credit facilities. On this basis, SIMAH has, since its foundation, inserted the following statement in each credit report issued “This information has been collated from various sources and does not represent the opinion of SIMAH. No Liability (in tort contract or otherwise how- soever) attaches to us with respect to the collation or supplying of the information or any use made of it and whether in relation to its accuracy or completeness or any other matter whatsoever “. The credit report includes information that helps to enhance risk management and to deliver the evaluation process faster and more objectively. SIMAH collects credit information embodied on credit reports from public records and from members.

According to Article 16 of Implementing Regulations, the credit report include information related to the creditworthiness of the consumer, such as:

1. Natural consumer’s name, I.D number, place of residency, current and previous work location, marital status, educational qualifications, and personal data.

2. Juridical consumer’s name, commercial registration number, address, and any other relevant information.

3. All information on any existing or previous credit and any guarantees given to the consumer, his compliance with the specified dates, and any delayed or disputed payments.

4. Any credit-based claim and resolutions that were issued

5. Any insolvency, bankruptcy or liquidation claims instituted against the consumer and judg- ments taken in this regard, name of liquidator or trustee of bankruptcy, assets or debt amounts, payment dates and liquidation charges and expenses.

6. Any bounced checks issued by the consumer, their values and dates, and actions taken toward them.

7. Claims issued from official/competent authorities that he failed to settle.

8. Number and names of members who applied for the consumer’s credit reports during the past 2 years preceding the issuance date of the credit record, number of issued credit records and results thereof.

9. Any other information of credit nature that may affect the credit worthiness of the consumer.

9 nd Consumerone Awarenessene Proceduraloced Manualn 2 Section

Consumer Credit Report

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Personal Information Credit Report Summary

Customer Name : ******* Gender : ******* First Account Issue Date : ******* Marital Status : ******* Number of Active Credit Products : ******* ID Number : ******* Total Limits : ******* ID Type : ******* Total Outstanding Balances : ******* ID Expiry Date : *******

Issuing Authority : *******

Nationality : ******* Date Of Birth : ******* Total Guaranteed Limits : ******* Mobile Number : ******* Total Guaranteed Balances : ******* Employment Sector : *******

Employer Name : *******

Occupation : ******* Number of Defaulted Products : ******* Salary : ******* Total Outstanding Defaulted Balances : ******* City : *******

Update Date : *******

Credit Score

Scorecard : ******* ******* ******* Score Contributing Factors : ******* ******* ******* ******* ******* ******* ******* ******* ******* *******

Simah Score - Powered By Fico

Active Products Summary

Installment Outstanding Product Type Creditor Account Number Credit Limit As Of Date Payment Status Amount Balance

****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ******

Consumer Credit Report Consumer Credit Report

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Employment Information Product Details

Type Type Type Arab National Bank Credit Card Product: **************** Product Status: **************** Cloesed Product Employer : ****** ****** ****** Account Number Issue Date Credit Limit Number Of Installments Installment Amount Payment Frequency Expiry Date Type Of Guarantee occuption : ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** Date Of Employment : ****** ****** ****** Outstanding Balance Past Due Balance As Of Date Last Amount Paid Last Payment Date Next Payment Date Close Date Salary Assignment Basic Salary : ****** ****** ****** Total Salary : ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** Last Reported : Dispensed Max Instalment Average Instalment ****** ****** ****** Balloon Payment Down Payment Finance Mode Product Status Amount Amount Amount Employment Addresses ****** ****** ****** ****** ****** ****** ****** Address Type : ****** ****** ****** Address Line 1 : ****** ****** ****** Payment Status For Last 24 Months Address Line 2 : ****** ****** ****** P.O.Box : ****** ****** ****** Sabb Personal Loan Product: **************** Product Status: **************** Active Product City : ****** ****** ****** Account Number Issue Date Credit Limit Number Of Installments Installment Amount Payment Frequency Expiry Date Type Of Guarantee Postal Code : ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** Country : ****** ****** ****** Outstanding Balance Past Due Balance As Of Date Last Amount Paid Last Payment Date Next Payment Date Close Date Salary Assignment National Address ****** ****** ****** ****** ****** ****** ****** ****** : Building No ****** ****** ****** Dispensed Max Instalment Average Instalment Balloon Payment Down Payment Finance Mode Product Status Street Name : ****** ****** ****** Amount Amount Amount District Name : ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** City Name : ****** ****** ****** Payment Status For Last 24 Months Postal Code : ****** ****** ****** Additional No : ****** ****** ****** Instalments Details ( In Case Of Installment Change ) Unit No : ****** ****** ****** Installment Start Date 1 : ****** Installment Amount : ******

Installment Start Date 2 : ****** Installment Amount : ******

Installment Start Date 3 : ****** Installment Amount : ****** Disclaimer & Disclosure Installment Start Date 4 : ****** Installment Amount : ****** , This information has been collated from various sources on a confidential basis and doesn t represent the opinion of Saudi Credit Bureau (SIMAH). No Liability (in Disclaimer: Installment Start Date 5 : ****** Installment Amount : ****** contract or otherwise whatsoever) attaches to SIMAH as a result of taking any investment and/or any other decision based on information provided. Joint Applicant Disclosure: SIMAH, a Closed Joint Stock Company, Capital SR 200,000,000 Paid in Full,C.R1010171047 Membership No 115731,Tel: 8003010046, P.O Box 8859 Riyadh,11492 National Address: Riyadh, Alshuhada, BLDG No. 2596,Unit No 1, Additional No.7347, Zip 13241. Under the Supervision and Regulation of SAMA with a License No. 37 / 2. Number Of Applicants Instalment Amount Last Amount Paid Last Payment Date Outstanding Balance www.simah.com ****** ****** ****** ****** ****** Percentage Allocation Applicant Limit Payment Status Past Due Amount Next Payment Date

****** ****** ****** ****** ******

Payment Code Prescription Guide Previous Enquiries

Payment on time 91 - 120 Days Overdue Default Product No Update provided Enquiry Date Enquirier Enquiry Number Product Type Amount Applied For

1 - 30 Days Overdue 121 - 150 Days Overdue New Product Deferred Payment ****** ****** ****** ****** ******

31 - 60 Days Overdue 151 - 180 Days Overdue No Transactions More Than 180 Days Overdue ****** ****** ****** ****** ******

61 - 90 Days Overdue Fully Paid Closed Product Vacation Deferred Payment Enforcement Courts Decisions

Resolution Date Resolution Number City Reported Date Claimed Amount Outstanding Balance Status Settlement Date

10 nd one ene oced n 2 2 Sectionnd Section

Silver Report

17/11/2015 Enquriy Number 2 5 2 x x x x Enquiry Type: New Application Page 1 09:25:27 Member Reference Number 0 4 2 x x x x x Display of Credit Facilities: Summary Out of 7

Demographic Information

Company Name : ******* CR Number : ******* Issuer : ******* Issuer City : ******* Expiry Date : ******* Legal Type : ******* Business Activity : *******

Previous Enquiries

Enquiry Date Enquirier Enquiry Type Member Reference Product Type Amount

Credit Instrument Summary (000)

Funded

Collateral Realtionship Creditor Credit Limit Utilization Past Due As of Date Provided Age

Bank ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** Sub Total $$$ $$$ $$$ Non Funded

Collateral Creditor Credit Limit Utilization Past Due Realtionship Age As of Date Provided

Bank ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** Sub Total $$$ $$$ $$$

Grand Total $$$$$ $$$$$ $$$$$

Facilities Summary Level 1 (000)

Unutilized Relationship Creditor Approved Limit Global Limit Utilization Status Past Due Collateral As Of Date Balance Age

Silver Report Silver Report

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! Narratives Facilities Summary Level 2 (000)

Business Narratives Funded Non Funded Shared Limit Utilized Unutilized Utilized Unutilized Reported Date Narrative Type Text Credit Limit Cap Credit Limit Cap Limit Amount Balance Amount Balance ****** ****** ****** Creditor : ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ***** ******* ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** Creditor : ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ***** ******* ****** ****** Member Narratives ****** ****** ****** ****** ****** ****** ****** ****** ****** Creditor : ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ***** ******* ****** ****** Reported Date Narrative Type Reported By Text ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** ****** Credit Instrument Details

CREDITOR: **************************** ! Associated Narrative Limit Category Aggrregate Limit ! ****** ****** Type Date Loaded Loded By text Credit Instrument: 1 ****** ****** ****** ****** ****** ****** ****** ****** Credit Instrument Number Product Type Credit Limit Utilized Amount ****** ****** ****** ****** ****** ****** ****** ****** As of Date Issue Date Expiry Date Status ****** ****** ****** ****** Disclaimer & Disclosure Closed Date Tenure Instalment Amount Payment Frequency ****** ****** ****** ****** , Disclaimer: This information has been collated from various sources on a confidential basis and doesn t represent the opinion of Saudi Credit Bureau Government Guaranteed Security Type Past Due Last Payment Date (SIMAH). No Liability (in contract or otherwise whatsoever) attaches to SIMAH as a result of taking any investment and/or any other decision based on information provided. ****** ****** ****** ****** Last Amount Paid Next Due Date New Loan From Restructured Revolving Limit Disclosure: SIMAH, a Closed Joint Stock Company, Capital SR 200,000,000 Paid in Full,C.R1010171047 Membership No 115731,Tel: 8003010046, P.O Box ****** ****** ****** ****** 8859 Riyadh,11492 National Address: Riyadh, Alshuhada, BLDG No. 2596,Unit No 1, Additional No.7347, Zip 13241. Under the Supervision and Regula- tion of SAMA with a License No. 37 / 2. www.simah.com Payment Code Shared Limit ID ****** ****** Last 24 Cycles 0 1 2 3 4 5 6 8 M D

Credit Instrument Project

Project Name Project Owner Project Refernce ****** ****** ******

Credit Instrument: 2

Credit Instrument Number Product Type Credit Limit Utilized Amount ****** ****** ****** ****** As of Date Issue Date Expiry Date Status ****** ****** ****** ****** Closed Date Tenure Instalment Amount Payment Frequency ****** ****** ****** ****** Government Guaranteed Security Type Past Due Last Payment Date ****** ****** ****** ****** Last Amount Paid Next Due Date New Loan From Restructured Revolving Limit

11 Consumer Awareness Procedural Manual

2.5 Office Hours

SIMAH’s official working hours from (8 AM – 4:30 PM) (Sunday to Thursday).

2.6 Supervision & Inspection

The Saudi Central Bank (SAMA) is supervising and inspecting the Saudi Credit Bureau (SIMAH) in accordance with Articles and Provisions stipulated in The Law and its Regulations.

12 2002 Consumer Awareness Procedural Manual

3.1 Consumer Rights

SIMAH is taking the responsibility to raise consumers of their credit rights through awareness educational programs (including this manual) according to Article 34 of the Regulations. in its educational programs, SIMAH is obliged to clarify the following:

1. The credit report is a report issued by SIMAH that contains credit information on consumers.

2. The credit report reflects the credit history of the consumer until the last update by the member.

3. An Identification (ID/ passport / Iqama) must be submitted by the consumer to SIMAH employee before giving him/her any kind of service.

4. The credit reports of the consumer are history of their credit information and behaviors and do not give the member any decision to grant a facility or not.

5. The consumer has the right to know members who checked his/her credit report during the past 2 years preceding the issuance date of the credit report and their addresses.

6. SIMAH’s member is obliged to update consumer’s credit information once a week at least.

7. SIMAH’s member is obliged to obtain consumer’s written consent upon making an inquiry.

8. SIMAH’s member is obliged to obtain consumer’s written consent to provide his/her credit information to SIMAH. Members shall not provide SIMAH with incorrect data or if they have a believe that this data may be incorrect.

9. The consumer has the right to obtain his/her first credit report free of charge.

10. The consumer has the right to obtain his/her credit report free of charge if a member took a negative decision against him / her according to the Regulations.

11. The consumer has the right to obtain his/her credit report free of charge if he/she has e been rejected by a member.

12. The consumer has the right to obtain his/her credit report free of charge if he/she was a victim of any kind of fraud as long as he/she can prove it such as such as a proven manipu- lation of his /her personal information.

13. The consumer has the right to obtain his/her credit report free of charge if the report contains incorrect information.

14 3rd Section

14. The consumer has the right to obtain his/her credit report after modifying credit information upon submitting proven documents.

15. The consumer has the right to obtain his/her credit report at any time by paying the fees imposed by SIMAH, except for cases mentioned above.

16. Negative decision is any decision a member takes according to the credit report of a consumer against his/her interest. SIMAH shall not interfere in the decision.

17. The consumer has the right to raise a dispute at any time about a negative decision or any credit information contained on his/her credit report.

18. If negative information is in dispute between the consumer and the member, the member shall notify SIMAH that this information is in dispute.

19. When a consumer complains about an incorrect or incomplete data in his/her credit report, SIMAH must notify him/her about investigation results.

20. A member of SIMAH is obliged to notify the consumer by a written notification upon taking any negative decision based partially or completely on his/her credit report. The notification shall contain reasons of rejection, name, address and phone number of the credit bureau that provides data and a copy of the consumer’s credit report.

21. The consumer has the right to add a narrative in his/her credit report that shows his/her personal view on the information mentioned in his/her report.

22. The consumer has no right to claim for a modification or deletion of any of the information in his/her credit report without submitting official documents to support his/her claim and to prove it.

23. The consumer has the right to file a case to The Committee if he/she is not convinced of investigation results provided by SIMAH or his/her dispute is rejected.

24. SIMAH and its members are committed to maintain confidentiality over the credit information and data in their possession and to share them exclusively among each other and among credit bureaus. SIMAH and its members are liable for their employees acts in case of any violation of The Law or its Regulations.

25. A member of SIMAH may accept the consumer’s application for any facility even if he/she is either in default or not.

15 Consumer Awareness Procedural Manual

3.2 Credit Principles

Saudi Credit Bureau (SIMAH) shall conduct awareness programs to disseminate credit culture to all consumers by publishing the following credit principles :

The credit report is an informative credit record and SIMAH shall not 1. Neutrality interfere in any of its members decisions, whether positive or negative.

As an integral part of its culture, SIMAH is committed to treat all 2. Equity consumers fairly in every stage of the relationship between them.

1. A member of SIMAH is committed to make sure that any disclosure of information is complying with The Law, its Regulations, and any other banking regulations and bylaws issued by The Central Bank. 2. A member of SIMAH is committed not to disclose any information received from SIMAH except for what The Law, its Regulations, and Disclosure & any other banking regulations and bylaws issued by The Central Bank 3. Transparency allowed to be disclosed. 3. A member of SIMAH is committed to take all necessary precautions to verify that the information provided to SIMAH (including updates) is accurate, correct, and valid until the next update cycle in the same manner approved by SIMAH without any wwithout prejudice to the generality of confidentiality Non-Disclosure Agreement between the member and the consumer.

SIMAH shall develop appropriate programs and mechanisms to Credit Culture enhance skills and knowledge of the current and potential consumers 4. & Awareness to raise their credit awareness, understand credit risks and help them taking right effective and thoughtful decisions.

Credit SIMAH is committed to apply all professional requirements to persevere 5. Behaviors consumer rights throughout the entire relationship.

SIMAH shall take the highest level of care to protect the credit 6. Protection information, maintain and update it in accordance with period stipulated in the Regulations.

SIMAH is obliged to establish a department to deal with consumer’s 7. Complaints complaints and disputes, along with producing a disputes procedural manual and to publish it.

SIMAH and its Members shall maintain confidentiality of information and data in their possession and limit its usage and reciprocation among 8. Confidentiality each other on the purposes stipulated by the Law and Regulations. They both shall be held totally liable for any violations to the Law and Regulations by their employees.

16 3rd Section

3.3 SIMAH’s Obligations

1. SIMAH shall be obliged to sign membership agreements approved by The Central Bank with any party that wishes to obtain credit information, and provide such parties with credit reports on the consumer. Such agreements shall indicate rights and obligations of the parties. That party will be designated after signing the agreement as a “member”.

2. SIMAH may disclose the consumer’s credit report in the following situations: • Based on the member’s request and consent of the enquired consumer ; • Based on a request from a competent dispute settlement authority. • Based on The Central Bank’s request.

3. SIMAH shall prepare regular records containing consumers’ names and their characteristics whether natural or judicial, their addresses and work locations, nature of their businesses and their credit information.

4. SIMAH shall prepare regular records containing the names of members and companies they are transacting with, whether they are sources of information or other companies governed by the Law and its Implementing Regulations, and the agreements and contracts ratified with each of them as well as their periods and conditions.

5. SIMAH shall take all necessary measures and precautions to ensure safety, validity, accuracy and integrity of information obtained according to the Law and its Regulations.SIMAH shall comply with the following: • No information shall be collected from any party or source prior to signing a membership agreement with that party. • No credit information shall be gathered from members unless such action is in compliance with defined criteria to SIMAH, that include administrative, technical and legal requirements approved by The Central Bank. • SIMAH is committed to maintain confidentiality over credit information and data in its possession and share them exclusively with members, other bureaus, other persons and other related parties in accordance with The Law and its Regulations. • SIMAH shall take the necessary actions to ensure that there are reasons for requesting information by the member. • SIMAH is committed to inform the member with his obligations according to the Law and its Regulations.

6. SIMAH shall establish data and information security protection controls for the information it has or already possessed.

7. Prior to the issuance of any credit report, SIMAH shall: • Verify the identity of the applicant and purpose of such a request. • Obtain the member’s undertaking that the information will not be used except for the reasons specified in the application. • Ensure accuracy, completeness and currency of the information it provides.

17 Consumer Awareness Procedural Manual

3.4 Member’s Obligations

The member shall: 1. Obtain the consumer’s consent upon enquiring about his/her credit report and obtain his/her consent for providing SIMAH with his/her credit information 2. Not provide SIMAH with any information about the consumer if it knows that such information contains errors or sufficiently believes that such information may contain incorrect data. 3. Not furnish SIMAH with any false information about the consumer after it receives a notification to that effect from the consumer. 4. Periodically update the consumer’s credit information. 5. Provide SIMAH, in all circumstances, with correct and complete credit information about the consumer. 6. Use the consumer’s information received from the SIMAH for lawful purposes. 7. Inform SIMAH immediately about any closed credit accounts based on the consumer’s request. 8. Not divulge/disclose any information received from SIMAH about the consumer. 9. Develop records including the names and addresses of credit bureaus transacted with as well as the information provided to such bureaus. 10. In case the consumer’s information contains a dispute or complaint, the member shall not have the right to provide SIMAH with information on the consumer without notifying them that such information are under dispute or subject to complaint. 11. Verify the consumer’s information and correct or delete any contained errors. 12. The member who is committed by a membership agreement with SIMAH may not deny provision of credit information required by SIMAH or delay the provision of such information to SIMAH according to the defined schedules and agreed frequency stipulated in the membership agreements. 13. The member shall not have the right to re-include any negative information that has been deleted or modified in the consumer’s credit report without a resolution by The Committee. 14. The member shall inform the consumer in written notification about any negative information it will send to SIMAH clearly and explicitly. 15. In case the member has taken a negative decision toward the consumer for a cause that is partially or entirely due to any information included in his/her credit report, it shall notify the consumer with the negative information as well as the following information: • Causes for taking such a negative decision ; and • Name, address and telephone number of the credit bureau from where it obtained the credit report.

18 1st Section القسم الرابع

it o FR

19 Consumer Awareness Procedural Manual

4 Disputes and Complaints

1. SIMAH shall establish a dispute and complaints department, create a dispute procedure manual for consumers and publish it after obtaining The Central Bank’s approval. This manual should achieve the following:

• A full understanding of these procedures by the employee who deals with the consumers.

• Immediate and full investigation on any dispute.

• Keep a written disputes record and document any actions taken.

2. SIMAH shall within 5 working days from the date of being informed with the complaint, inform the member who issued the objected information and mention all related information as well as all evidence and documents submitted by the consumer, and give the member no more than 10 working days to respond. If no response is received within 10 working days, this will be taken as valid evidence for supporting the consumer’s claim.

3. SIMAH shall take an action within 7 working days from the date of receiving the member’s response, or after 10 days without receiving any response from the member.

4. Once the investigation proves partial or complete validity of the claim, or it is proven that the information cannot be verified, SIMAH shall within 2 working days remove the objected information from the credit report or revise it, as the case may be.

5. SIMAH shall not have the right to delete or revise any negative information in the consumer’s credit report once it is proven to be accurate.

6. SIMAH shall notify the objector with the actions taken to investigate his objection within at least 10 working days from the date of his/her objection.

20 4th Section

7. SIMAH is committed to notify the objector in written with the finding of the investigation within at least 5 working days from the date of taking the decision in this regard, including the following:

• A copy of the revised consumer’s credit report if the objection has proven to be valid.

• A Summary of the consumer’s rights according to The Law and its Regulations, if it is proven that the objection is invalid.

8. SIMAH shall refer in every credit report it issues during the investigation period to the objection raised on any information contained in that report. If the investigation fails to settle the objection, SIMAH may, on the request of the objector, undertake the following:

• Refer to the objection in any subsequent credit report relating to the objector and including any objected information.

• Include in the credit report a clear summary of the actual facts of the projected information as viewed by the objector.

• Notify any party designated by the objector, which had obtained his credit report in the previous year of the objection regarding the submission of the objection if that report included any of the objected information.

9. Once any information contained in the objector’s credit report has been deleted or modified, SIMAH shall notify such a deletion or modification to any party defined by the objector that may have obtained his/her credit report during the year preceding the objection, and to all licensed credit information bureaus that are contracted with the SIMAH.

10. The consumer may, if his /her objection is rejected, approach The Committee.

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