In the wake of increasing complaints by bank customers about banks being slow to issue clearance letters, which can cause higher loan costs and great inconvenience, the Saudi Arabian Monetary Agency (SAMA) is requiring that banks issue these letters within 10 days of request. An official source at SAMA made it clear that authorities will not tolerate any violations and strictly apply the law against banks that do not follow the rules. He warned all banks against delaying customer services including the provision of clearance letters when people fulfill their financial obligations to the banks. The source said some banks respond to their clients in less than 30 minutes when they seek personal loans “but the situation differs when the customer asks for a clearance letter in order to transfer their account to a bank that offers a lower interest rate on loans. In some cases, banks take a stalling tactic and at best they give the letter in a month or more.” He said the delay can leave customers with no choice but to borrow from the bank that will not issue the clearance letter. The source emphasized that SAMA will strictly punish banks that break the law.
