‘It's not like 40 years ago JEDDAH –Saudis don't know how to manage their money, are too ready to sign contracts without reading the finer details, and have very little comprehension of their rights when taking out loans, according to the head of the Saudi Credit Bureau (Simah). The bureau is a national institution set up in 2004 by the nation's ten commercial banks to provide consumer credit information services and help credit providers make improved lending decisions. Nabeel Al-Mubarak, Simah Director General, said that one reason why so many Saudis take out loans is because they do not know how to work within their incomes or manage their financial affairs. “If I were a senior state official I would put aside SR100 billion to enlighten people on their rights and duties. Things are different to what they were 40 years ago, and we should by now have acquired sufficient awareness in managing our personal affairs,” he said. Al-Mubarak advised people to “read the document they are about to sign.” “There's nothing wrong with delaying a loan a day or two to take the time to read the document,” he said. “People are protected by regulations, but they fail to read the regulations that actually protect them. They have rights, but they must know those rights in order to protect themselves.” For those concerned about the use of private data by large companies, Al-Mubarak said that everything is clearly expounded in the documents available. “If they read credit card or loan conditions, or for any other service, they will find it states that the client's data is recorded with Simah,” he said. “There are tight rules binding the relationship between the company and client. The public can complain of any leak of information and the company is duty-bound to investigate.” For enquiries into a prospective client's credit record, approval from the clients themselves must be sought. “A credit record assessment is compulsory according to the terms of financing contracts, so clients have to sign their approval.” According to Al-Mubarak, Simah does not have a list of banned clients. “We don't have a blacklist. The simple principle we work to is that from the very first day that a loan is granted all the borrower's information appears in the credit report, which is then updated every month until the whole loan has been paid back,” he said. Defaulting on payments is not a “sudden event”, Al-Mubarak said, but instead, “six consecutive months of failing to pay installments have to pass.” “Only then does the client default and it is recorded in the credit report, which has replaced the lists of defaulters the banks used to draw up before Simah was set up.” Al-Mubarak added that everyone has the right to view their credit reports and the right to lodge an objection to any of the content.
