The terms and phrases mentioned below - wherever they appear in these regulations - shall have the meanings specified next to each, unless the context requires otherwise:

• Financing Entity: Banks, commercial banks, and financing companies subject to the supervision of the Saudi Central Bank, as well as government financing entities such as banks and funds affiliated with the National Development Fund.

• Financing: The credit granted to the client by the financing entity.

• Client: A natural person who has obtained a financing product from a financing entity.

• Permanent Payment Order in favor of the Financing Entity: A service provided by banks through which financial transfers are executed periodically from the client's account to the account of the financing entity over a specified period and amount for the repayment of financing.

• Reliable Communication Means: A registered communication method that can be verified and is retrievable in written or electronic form.

The purpose of these regulations is to establish the minimum provisions that must be adhered to regarding the matter of the ongoing defense in favor of financing entities, to enhance and protect competition among financing entities, to support the availability of financing options for clients, as well as to contribute to reducing the risks of default in payment.

These regulations apply to all financing products, without prejudice to the principles of responsible financing for individuals and the controls and procedures for the collection from individual clients, as well as other relevant systems and instructions.

The financing entity benefiting from the standing payment order is obligated to the following:

• 1. Grant the client approval to change the amount of the standing payment order when their circumstances change, which necessitates the rescheduling of the debt, within (three) business days from the date the financing entity completes the rescheduling procedures.

• 2. Provide the client with a clearance letter and a no-objection statement for the cancellation of the standing payment order within (seven) business days from the date of their request in the following cases: 

  • A. Settlement of due obligations.

  • B. Exemption from them as specified in the relevant instructions of the Saudi Central Bank or as stipulated in the related regulations and instructions or as included in the provisions of the contracts.

• 3. Financing entities benefiting from standing orders may coordinate and reach prior agreements with each bank in Jeddah to receive immediate notifications or periodic data reports that include details of the standing order transactions conducted in their favor.

• 4. Notify the client upon receiving the amount of the standing payment order through reliable communication means.

I acknowledge that the Order for continuous payment of my obligations from my bank account (IBAN number: ..........) resulting from the financing granted to me by the financing entity, and that it cannot be canceled except after providing a clearance certificate from the financing entity benefiting from this order. I also acknowledge that I do not have the right to change the amount of the monthly deduction or the duration of the deduction except after obtaining the approval of the financing entity benefiting from it. Furthermore, I acknowledge that (the bank) has the right to deduct the monthly amount on the specified date or within (five) days from the specified date. I acknowledge that (the bank) executing the Order for continuous payment is not responsible for any damages that may arise from the Order for continuous payment, nor does it bear any obligation arising from the execution of this order, and that (the bank) has the right to claim from me for any damages that may occur to it as a result of this order.