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The Consumer Protection Association confirmed that mortgage contracts related to the "Cyber" interest rate index were of interest and that the SABB had not responded to the correction of the status of persons affected by mortgage variable interest rates like other banks.
Consumer Protection has announced that it has identified a number of irregularities in certain leasing contracts related to the variable rate index, in accordance with the mandate of the association, in order to educate consumers about their rights. , to complain, protect and defend their interests, Submit an individual complaint to the Saudi Monetary Agency (SAMA) and to the Committee for Settlement of Violations and Disputes, as these are the competent authorities.
The Association pointed out the existence of certain irregularities in the contracts of certain clients of the SABB Bank relating to real estate linked to the variable rate index, namely:
1- Violation of the first paragraph of Article 9 of the Financial Leasing Regulations which states that "the contract must include a repayment schedule specifying the value of the asset and the value of the property right separately, provided that the payment is not less than the contract term for the original value of that period "That the contract does not include what shows the origin and the the value of the property.
2. Violation of Article 11 of the Financial Leasing Act, which provides that "If the lessee chooses at any time to hold the leased goods under the contract, he may acquire them in advance. by separate schedule to which the sale or gift is made: Term for the remaining term of the contract The lessor may offset the following costs: The cost of reinvestment, not exceeding the cost of the term for three months after the anticipated ownership, for the remaining term of the contract paid by the lessor to a third party for the contract in relation to the costs stipulated in the contract.In addition, a contract may be provided in the contract for a period where the anticipated ownership is prohibited if the contract is a good and this requirement is deducted from the cost of the duration, provided that the period of prohibition does not exceed two years from the date of conclusion of the contract,
A – The contract does not specify the expenses that the lessor is entitled to return to the tenant in case of early repayment in detail.
B) The mechanism for calculating the amount of the early repayment must include the profit for the next period of the contract, in addition to 3% of the remaining amount.
3- Infringement of Article 10, eighth paragraph, of the regulation implementing the law on the financing of real estate, which stipulates that "if the cost of the term is variable, three examples of the amount of installments will be taken into account , taking into account the cost of the primary period and the higher and lower costs "Initial.
4- Violation of the twelfth and thirteenth paragraphs of Article 10 of the Real Estate Finance Regulation, which stipulated that the contract should be included in the contract:
(A) Guarantee and insurance.
(B) The procedures for exercising the right of withdrawal and its conditions and the financial obligations arising from its exercise.
The association said the contract did not include information and insurance coverage, as well as the customer's right to withdraw from the contract and violation of the principle of disclosure and transparency of the principles of protecting the clients of finance companies. Not deceiving. "(Represented by the above offenses).
This was a renewed call from the Consumer Protection Association to other companies and financial institutions that had not launched the reform of variable interest mortgage contracts like other banks.
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