Customer Care Policy

Banque Saudi Fransi

Customer Care Group

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Table of Contents
Explanation of Key Terms .......................................................................................................................... 3
Table of Abbreviations:.............................................................................................................................. 3
Definitions ......................................................................................................................................... 4
Applicable Laws and Regulatory Compliance Requirements .................................................................... 6
Introduction ............................................................................................................................................... 7
Statement of Commitment ....................................................................................................................... 7
Purpose ...................................................................................................................................................... 7
Policy Manual Scope and Applicability ...................................................................................................... 8
1.1 Policy Manual Scope: ............................................................................................................. 8
1.2 Policy Applicability: ................................................................................................................ 8
Policy Manual ............................................................................................................................................ 8
Policy Statement ............................................................................................................................. 8
Consumer Protection Policy ...................................................................................................................... 9
1.1 Marketing and Sales Stage: ...................................................................................................... 9
1.2 Credit Study Stage After the Initial Approval: ....................................................................... 11
1.3 Signing the Financing Contract After the Initial Approval Stage: ......................................... 13
1.4 After-Sales Service Quality Stage:.......................................................................................... 14
1.5 Promissory note Policy in case the purpose ended: ............................................................. 17
1.6 Complaints Handling Stage: ................................................................................................... 17
1.7 Communication with Customer Stage: .................................................................................. 19
1.8 Credit Advisory ....................................................................................................................... 20
Annexure ................................................................................................................................................. 20
Annex ....................................................................................................................................................... 20
Consumer Protection Principles as per SAMA to be adhered by Bank: .......................................... 20
General Conduct Rules As per SAMA to be adhered by the Bank: ................................................. 22
Special Conduct Rules...................................................................................................................... 27

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Explanation of Key Terms

Table of Abbreviations:

Sr. No. Abbreviation Full-Form

1 BoD Board of Directors
2 CEO Chief Executive Officer
4 CCG Customer Care Group
5 BSF Banque Saudi Fransi
6 TAT Turnaround time
7 PPU Policies and Procedures Unit
8 PPC Policies and Procedures Committee
9 KPI Key Performance Indicator
10 SAMA Saudi Central Bank
11 IAG Internal Audit Group
12 SLA Service Level Agreement
13 LGG Legal & Governance Group
14 HRG Human Resources Group
15 BL's Business Lines
16 KSA Kingdom of Saudi Arabia
17 CGD Corporate Governance Division
18 CPG Compliance Group
19 RMG Risk Management Group
20 CMS Complaint Management System
21 SMS Short Message
22 CR Complaint Resolver
23 PIN Personal Identification Number
24 OTP One Time Password

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 Sr. No. Abbreviation Full-Form
25 CAP Corrective Action Plan
26 RCA Root Cause Analysis
27 CSR Customer Service Representative

Definitions
Term Definition

SAMA The Saudi Central Bank.

An entity supervised and regulated by SAMA according to the applicable

Financial institution
laws.

Any natural or juristic person that is basically practicing any of the banking
Bank business in Saudi Arabia and is licensed according to the provisions of the
Banking Control Law.

A joint stock company licensed to engage in finance activities according to

Finance company
the Finance Companies Control Law.

A joint stock company conducting insurance and/or reinsurance activities

Insurance company
according to the Insurance Companies Control Law.

Payment service providers licensed by SAMA according to the Law of

Payments institutions
Payments and Payment Services.

Financial institutions providing remittance services under the license

Remittance service providers
issued by SAMA.

Financial institutions licensed to issue credit and charge cards in Saudi

Credit and charge card issuers
Arabia.

Companies licensed to collect and maintain credit information on

Credit bureaus consumers and provide the same to members upon request according to
the Credit Information Law.

A report issued by a credit bureau containing consumer credit

Credit record
information.

A situation in which the objectivity and independence of a financial

Conflict of interest institution or any of its employees is adversely affected during the
performance of tasks in pursuit of its own interests or the interests of any

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 of its employees, in a manner that violates justice, fairness, integrity and
responsibility to consumers.

A natural person who is a beneficiary of products and services provided

Consumer
by licensed financial institutions.

Any expression, written or verbal, entailing dissatisfaction with the

Complaint
provided services, whether such dissatisfaction is justified or not.

Inquiry from the customer about the services and products provided by
Inquire
the bank.

When a financial institution reaches a final outcome regarding the

consumer's complaint by following the measures and procedures
Complaint resolution
necessary to settle the complaint fairly and effectively within the specified
time period.

Management Customer care management

A request submitted by the customer to obtain a product or service

Request
provided by the bank.

Electronic system The bank's electronic system for registering complaints and inquiries.

An entity that is designated to perform an activity on behalf of the

Third Party
financial institution

Documented, verifiable and retrievable communication in paper or

Authenticated Channels
electronic form.

An official statement issued by the financial institution confirming that

Clearance Letter the customer has no financial obligations towards a product or service
previously obtained by the customer

The discount rate at which the present value of all installments and other
payments due from the beneficiary, which represents the total amount
APR
owed by the beneficiary, is equal to the present value of payments of the
amount of financing available to the beneficiary.

The rate of a savings account or investment product that has more than
AER
one compound interest/income during the year

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 Applicable Laws and Regulatory Compliance Requirements

Fundamental to the need for this policy is ensuring compliance with the law and SAMA's principles and
other regulatory requirements. These laws, rules, regulation and circulars include its amendments, but
are not limited to, the following:

Law/Regulation References
Handling Customers' Complaints SAMA Circular # 1519/MD/MAT DTD 06/08/1427 H

Complaints Handling Rules. SAMA Circular # 903/MD/MAT DTD 20/04/1428 H

executive regulations of the credit information system SAMA Circular # M/37 DTD 05/07/1429H

Banking Consumer Protection Principles. SAMA Circular # 341000095960 DTD 03/08/1434 H

Updating the Controls of Resolving and Creating Complaint Units in Banks SAMA Circular # 351000145194 DTD 26/11/1435 H

Complaints Handling Rules. SAMA Circular # 361000094858 DTD 07/07/1436 H

Credit Advisor SAMA Circular # 3610000107078 DTD 08/08/1436 H

Finance companies' consumer protection principles. SAMA Circular # 361000110320 DTD 14/08/1436 H

SAMA Circular # 371000106040 DTD 08/10/1437 H

Sending periodical reports about bank customer complaints.

Amendment of the two paragraphs (9) & (10) from Article 13 in Banking SAMA Circular # 381000033553 DTD 26/03/1438 H
Consumer Protection Principles.
Launching the 1st stage of SAMA Cares system SAMA Circular # 381000107382 DTD 01/11/1438 H

SAMA Circular # 391000028201 DTD 10/03/1439 H

Measuring the Performance Indicator of Financial Institutions.
SAMA Circular # 391000083340 DTD 26/07/1439 H
Controls and procedures of collection for the individual customers
SAMA Circular # 46538/99 DTD 02/09/1439 H
Principles of responsible financing for individuals
Mandatory Instructions when Offering a Real Estate financing Product to SAMA Circular # 46544/99 DTD 02/09/1439 H
Individuals
Amendment of paragraph No. (2) From (first) clause related to controls and SAMA Circular # 41038239 DTD 01/06/1441 H
establishing complaints units in banks.
Amendment of paragraph No. (3) of the mandatory instructions when providing SAMA Circular # 41059668 DTD 16/10/1441 H
the real estate financing product to individuals
Rules for disclosing prices of financing and savings products SAMA Circular # 41068291 DTD 02/12/1441 H

The responding standard form for complaints received via “SAMA Care” system SAMA Circular # 42006529 DTD 05/02/1442 H

Issuance of Saudi Central Bank Law SAMA Circular # 42023191 & 42023196 DTD 10/04/1442 H

Updating the Performance Indicators of Financial Institutions. SAMA Circular # 42027544 DTD 28/04/1442 H

Instructions for financing entities for dealing with promissory notes SAMA Circular # 43076917 DTD 04/09/1443 H

Principles and Rules for Protecting Consumers of Financial Institutions SAMA Circular # 44006639 DTD 26/01/1444 H

Partial Update on Performance Indicators of Financial Institutions SAMA Circular # 44009296 DTD 05/02/1444 H

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The standard form of the consumer financing contract for individuals SAMA Circular # 44058467 DTD 17/07/1444 H

Controls for establishing a customer care department in banks SAMA Circular # 44069265 DTD 29/08/1444 H

Introduction

The Banque Saudi Fransi Customer Care Group (CCG) is an independent and centralized control
function that is entrusted with the responsibilities of leading and managing consumer protection and
customer complaints by setting and developing policies and procedures in accordance with the best
local and international practices in the field of customer protection and customer complaint handling,
establishing and conducting awareness and training plans and programs related to consumer
protection and customer complaints. CCG’s key role entails monitoring BSF compliance with SAMA
requirements related to consumer protection through customer complaints from various channels by
performing a review, validation, and reporting of all customers' complaints received. The Group’s main
objective is the upkeep and protection of the Bank's reputation, and the continuous improvement of
customer experience to better leverage development and growth. CCG reports directly to CEO to
ensure independence and avoid or minimize potential conflict of interest. This arrangement shall
enable the Customer Care Group to perform its duties effectively. The Group also notifies the Board of
Directors on significant updates as and when required.

Statement of Commitment

BSF and its Board of Directors are firmly committed to maintaining high standards, ensuring that
customers are dealt with fairly and honestly, though, implementing an effective framework for the
management, oversight of complaints resolution, and promoting an organization structure that values
customer care as a tool for continuous improvement. The Bank is also committed to resolving all
complaints in a timely and fair manner and rectifying process weaknesses, that can adversely affect
the service delivery to customers or other third parties.

Purpose

- To establish the principles of consumer protection and keep abreast of the instructions issued
by SAMA in BSF.
- To ensure that BSF customers are treated with transparency, honesty and fairness.
- Provide a guideline in analyzing complaints and their patterns, and deal with their causes and
source of origin.

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 - Ensure compliance with SAMA rules and regulations concerning customer care as part of its
general requirements for consumer protection and provide an overall systematic framework
when handling complaints related to customers and/or other third parties.
- This policy is designed to ensure compliance with the rules and regulations of SAMA, to
protect customers rights and take care of them during all stages of their dealings with the
bank (for example: marketing and sales procedures, procedures for ensuring the quality of
after-sales services, procedures for dealing with complaints, procedures for communicating
with customers, procedures for credit advisor services).

Policy Manual Scope and Applicability

1.1 Policy Manual Scope:

- The management of Consumer Protection is the primary role of the Customer Care Group
(CCG), also oversees and manages all complaints from other functions. These third parties
may include:
1. Shareholders and other functions in BSF.
2. Counterparties with whom BSF deals in connection with its business.
3. Suppliers and/or other third parties.
- This policy manual applies to all Business Lines (BL's), Support Functions and Control
Functions.
- This policy manual is implemented primarily by the Customer Care Group (CCG) and all
employees of Banque Saudi Fransi who receive complaints or are required to deal with them.
Therefore, it is the responsibility of all BSF employees to familiarize themselves with the
contents of this policy.

1.2 Policy Applicability:

- This Policy is applicable to all BSF staff in all Departments/Divisions or Functions where such
requirements and principles are applicable.
- It applies to persons who are, or may become customers to BSF. It also applies to the
activities of any third party engaged by the BSF for outsourced, insourced or contracted
activities.
- It concerns dealing with the root causes of the complaints that are, or may not filed
by customers. It also applies to the related activities of any third party engaged by
the BSF for outsourced activity.

Policy Manual

Policy Statement
It is BSF policy to ensure that it has taken all reasonable steps to oversee and take the lead role in
promoting transparency, fairness, and ease of access for financial customers, including the resolution

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 of customer complaints, customer credit advisory, education & awareness and to have a robust
framework for all related activities with a clear set of roles and responsibilities to ensure effective
management, oversight and resolutions. As part of this, it is BSF's policy that any complaint is
investigated promptly and thoroughly without any unlawful or illegal prejudgment to the complainant,
this policy cover the following three policies (Consumer Protection and Customer Care Policy,
Complaints Root Cause Analysis Policy, Awareness and Financial Education Policy).

Consumer Protection Policy

1.1 Marketing and Sales Stage:
The following rules aim to provide transparency in the market regarding annual percentage
rate/equivalent annual rate, for the various products offered by finance companies to
customers, this will allow individual customers and small and micro enterprises to compare
these rates between the various financing and savings products offered by financing
companies.

Disclosure requirements:1

1. BSF shall disclose the information of all financing products for individuals in a
detailed and clear manner on the website, channels and marketing materials in
accordance with the disclosure tables contained in SAMA relevant instructions.

2. BSF shall disclose information on all financing products for small and micro
enterprises in a detailed and clear manner on the website, channels and marketing
materials, by disclosing the price range for each product in accordance with the
disclosure tables contained in SAMA relevant instructions.

• In the event that disclosure tables cannot be included in some channels and
marketing materials such as paper publications, it is forbidden to include or refer to
any competitive prices or advantages in a way that misleads the consumer, and
reference is made to the website for more details about the product.

3. BSF shall develop a calculator for each financing product that shows the price and
periodic instalments based on consumer inputs. In the event that this is not possible,
several examples of prices are disclosed according to the financing amount, duration
and consumer category, so that they are not less than three examples.

4. BSF shall comply with the financing limits, fees and tariffs of the relevant laws,
regulations and other regulatory requirements.

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Based on SAMA circular # 41068291 Rules for disclosing prices of financing and savings products.

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 5. BSF shall not use any prices, percentages or rates that do not comply with the
disclosure tables and calculator results on the website within marketing campaigns.

- The calculation process and factors influencing pricing should be made clear for the
purpose of transparency, e.g. if variable interest/profit rates are used, it should be
mentioned and explained.

- Disclosure of the minimum or maximum for products whose price cannot be

determined. If one of the disclosure requirements in the disclosure forms does not
apply to a product, it must be stated that it “does not apply” with a reasonable
justification.

- It should be noted in writing that disclosure, whether through disclosure tables or a

calculator, is an example and that prices are subject to change for some customers in
the event of influencing factors such as the consumer's credit history.

6. BSF shall review the prices periodically and at least monthly, with any change in
prices reflected in the disclosure tables and calculator within a working day, and the
date of the last update mentioned at the top of the page.

Disclosure schedule forms for individuals:2

BSF shall use the examples below; To clarify the minimum information that disclosure forms
must include and additional information may be included to the minimum requirements
mentioned:

Various financing products:

1. Disclosure of products recorded in the balance sheet, such as financing, without the
need to disclose products outside the balance sheet.

- Term financing.

- Funding amount.

- AER.

- APR.

- Monthly installment.

2. BSF, while announcing the product, shall include its name, logo, any distinctive
statement, and contact information.

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Based on SAMA circular # 41068291 Rules for disclosing prices of financing and savings products.

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 3. BSF shall include a declaration of the name of the advertised product, and clearly
state the APR of the product to the consumer. The advertisement may not include
other rates for the term cost.

4. BSF shall be prohibited from the following:

- Submitting an advertisement that includes a false offer, a false claim, or a description

formulated in terms that lead, directly or indirectly, to deceiving or misleading the
consumer.

- Presenting an advertisement that contains a logo or a distinctive mark without you

having the right to use it or to use a counterfeit mark.

1.2 Credit Study Stage After the Initial Approval:3

1. BSF shall examine the credit record of the consumer after his/her approval, to verify
his/her financial solvency, ability to pay, and his credit behavior, and document this
in the financing file.

2. BSF shall records the credit information of the beneficiary, after his / her approval,
with one or more companies authorized to collect credit information, in accordance
with the provisions of the relevant rules, regulations and instructions, and updates
that information throughout the dealing period. with the beneficiary.

3. BSF shall reject the financing request in the event that it does not obtain the consent
of the consumer or the beneficiary.

4. BSF shall define administrative levels for granting financing according to its type and
size, including determining types of financing that require the approval of more than
one person, and the decision to accept or reject financing must be in accordance
with the authorities of each administrative level.

5. BSF shall follow a scientific method and clear, transparent and written standards and
procedures to assess the creditworthiness of the financing request and its ability to
repay, according to best practices in this field. BSF board of directors must approve
these standards and procedures and review them at least every two years and
update them when needed including the procedures before financing and
documenting this in the financing file.

6. BSF shall ensure that when customers apply for a service or product, BSF complies
with the following4:

3
Based on SAMA circular “46538/99” Principles of responsible financing for individuals.
4
Based on SAMA circular “44006639” Consumer Protection Principles and Rules.

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- Sending a text message to the customer (immediately upon submitting the
application) containing, as a minimum: the application title, the application reference
number, the expected date of its implementation, and the toll-free number
designated for inquiries.

- Notifying the customer of the acceptance or rejection of the application via a text
message with a maximum of (3) working days, in the event of rejection, the
notification must include the reason for rejection in addition to the mechanism of
objecting on rejection.

7. BSF shall use models and financial tools to measure the ability to bear the monthly
credit obligations and the suitability of financing to the needs and circumstances of
the customer, based on a credit study and an assessment of the customer’s available
monthly net income.

8. BSF shall ensure a balance between efficiency and effectiveness in the models and
financial tools used to measure the ability to bear, and benefit from the information
and data available to the financier, as well as from the sources of public statistics
available in legal form.

9. BSF shall be committed to the following:

- Obtaining the consumer's documented approval when inquiring about his/her credit
report and agreeing to provide the licensed credit bureaus companies with credit
information.

- Not to provide credit bureaus companies with any credit information about the
consumer if it is known that it contains errors or believes that this credit information
may contain incorrect data.

- Not to provide companies with incorrect information about the consumer after
receiving a notification from the consumer.

- Update consumer credit information periodically in the credit bureaus companies, at

least once a week.

- Providing credit bureaus companies with correct and complete credit information.

- Using credit information received from credit bureaus companies about the
consumer according to the permitted purposes.

- Notify credit bureaus companies immediately of any closed credit accounts upon
consumer request.

- Not to disclose any credit information about the consumer received from the credit
bureaus companies.

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 - The member is not entitled to provide credit bureaus companies with negative
information about the consumer that includes a dispute or complaint without
notifying them that this negative information is the subject of a dispute or complain.

- Checking consumer credit information and correcting or deleting any related errors
in it.

- BSF, which has an existing credit transaction with the consumer, is obligated to notify
it of any negative information that will be sent to the credit bureaus companies
within thirty working days from the date of its entry in the member’s records, and
the notification to the consumer of what is sent shall be in an explicit and clear form.5

1.3 Signing the Financing Contract After the Initial Approval Stage:
Protection of consumer rights in financing services:

1. The finance contract must be in written or electronic form, between the bank and
the beneficiary, and each party must receive a copy of it.

2. BSF must top the financing contract with a summary that includes the basic
information of the financing product and the basic provisions of the financing
contract in clear language to the beneficiary, according to the form decided by
SAMA, and the document. Submission of this summary to the beneficiary in the
financing file.

3. BSF shall encourages customers to read the contracts, their annexes, the initial
disclosure form, terms and conditions, documents and any other document that
requires the customer's approval or signature, and to verify their knowledge and
awareness of what is stated therein, in addition to providing the updated terms and
conditions through the electronic channels of BSF.

4. BSF shall ensures the clarity and ease of understanding of the information on services
and products provided to customers, so that they are up-to-date, clear, concise,
accurate and not misleading, and can be accessed without trouble, especially its main
terms and features, it should also include clarification of the rights and
responsibilities of each party and details of the rates and commissions charged by the
BSF, taxes consequences, exceptions, fines, the main types of risks and benefits, the
mechanism for terminating the relationship and its consequences, in addition to
providing information on alternative products and services offered by BSF6.

5. BSF shall provide the customer with an initial disclosure form that contains
information on products and services, details of calculating fees and commissions,

5
Based on the executive regulations of the credit information system.
6
Based on SAMA circular “44006639” Consumer Protection Principles and Rules

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 and term cost (if any) this is when concluding the contract or agreement and taking
an acknowledgment from the customer that he has read and understood it and
agreed to its content, the disclosure form must be in an easy, clear language and in a
simplified manner7.

6. BSF shall standardizes the font size used (a minimum size 14) and be clear and
readable in the contracts and their appendices, including; initial disclosure forms,
terms and conditions, documents, exceptions, and any other document that requires
the customer’s signature or access to it, and the customer’s signature should not be
requested (whatever the form of signature) on any blank document or if all of its
data has not been completed, and CCG shall ensure that BSF protects and maintains
customers’ documents and signatures8.

7. BSF shall BSF provides the customer with a paper or electronic copy (according to the
customer's preferences) of all documents related to products or services immediately
upon obtaining them, and CCG shall ensures that BSF takes an acknowledgment from
customers of receipt in the event that they are provided in paper, for example, but
not limited to: the contract and its appendices, insurance documents, terms and
conditions, schedule of fees and commissions.

1.4 After-Sales Service Quality Stage:

1. BSF shall informs the Customer through a text message to his/her mobile phone
approved by BSF, in addition to other documented channels, of any change in the
Terms and Conditions (if the Agreement and the relevant instructions allow such
change) for a period of not less than ( 30) days prior to the entry into force of this
change, and CCG shall ensure that BSF allows the possibility of objection in case the
customer does not agree after receiving the notification through one of the
documented channels.

2. BSF shall ensure that there will be no change to the increase in fees and commissions
that customers must pay after obtaining the service or product and signing the
contract, agreement or the like, except for fees and commissions related to another
party, provided that they are related to the customer’s use of the funded asset, and
must notify the customer of this when concluding the contract.

3. BSF shall places the list of fees and commissions (including third party fees) in a clear
place in its buildings and branches and include it on its website.

7
Based on SAMA circular “44006639” Consumer Protection Principles and Rules
8
Based on SAMA circular “44006639” Consumer Protection Principles and Rules

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4. BSF shall be responsible to protect customer information and data and maintain its
confidentiality, whether information and data kept with BSF or with a third party,
therefore BSF shall complies with the following:

- Provides a secure and confidential environment in all BSF channels to ensure the
confidentiality of customer data when executing transactions, setting appropriate
work procedures and effective control systems to protect customer data, and
discovering and addressing abuses that have occurred or are expected to occur.

- All permanent or temporary employees and employees of third parties sign a

confidentiality form with respect to customer data and ensure that they do not
disclose customers’ personal information and prevents access to it and limit it to
authorized persons only, whether they are on the job or after leaving their jobs.

- Maintains the confidentiality of customer data in accordance with the relevant

regulations and instructions.

5. BSF must ensure that all its electronic channels are available and safely, and in the
event that customers incur a direct loss as a result of penetration of these channels
and/or their security weakness, they must be compensated for any resulting losses,
therefore BSF shall complies with the following:

- Applies multiple authentication methods when accessing electronic services and take
the necessary measures to reduce electronic fraud.

- Includes the purpose of sending text messages with a verification code to customers,
for example: defining a beneficiary, resetting password, accessing the account,
transferring money.

6. BSF shall verifies the continuity of its systems and services, and ensure its readiness
to meet the needs of customers at all times, and will not take advantage of any
refunds that may arise due to an error or technical failure and shall return them to
the affected customer without delay, and other customers who have been exposed
to the same error within (5) working days and without waiting for a claim, and the
defect or malfunction must be repaired in accordance with the requirements of
business continuity, and affected customers must be contacted and informed of the
error and the corrective measures taken through one of the documented channels,
and this must be announced through all available channels.

7. BSF shall ensures that tasks of all employees are performed efficiently and effectively
and that behaviors and ethics are followed professionally towards existing or
potential customers at all times, in addition to periodically training frontline
employees who deal directly with customers on a regular basis, working on
obtaining the necessary professional certificates by them for knowledge of dealing

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 skills with customers, knowledge of the products and services provided to customers
and the relevant instructions issued by the SAMA.

8. BSF shall follows up on the performance of front line employees through visits
(periodic - confidential) to the branches, the call center and the collection
employees, including third-party employees, to ensure that best practices are
followed when dealing with customers, and familiarity with the instructions issued by
the Central Bank and products and services provided by the BSF, provided that semi-
annual reports are submitted to the senior management to monitor the performance
of employees, provided without prejudice to the relevant instructions.

9. BSF is committed to providing continuous awareness to customers through all

available channels, which shall include, as a minimum:

- Products and services, their risks, mechanism for dealing with debt, default, fraud,
dealing with unlicensed companies, financial or investment institutions, savings,
education and financial planning.

10. BSF shall provide within (5) working days the following documents upon the
customer's request:

- A copy of the original forms for any service or product.

- A copy of the updated terms and conditions of the product or service.

- A copy of the contracts concluded with the customer, including the documents of
guarantees and guarantees.

- A copy of the insurance policy, if any.

11. BSF provides a free phone number that customers can contact from inside the
Kingdom via land and mobile phones, in addition to a phone number for calling from
outside the Kingdom to submit complaints and inquiries, provided that the free
number is published on the home page of the website of the BSF clearly to the
customer in addition to all other channels.

12. BSF shall considers humanitarian cases and its social responsibilities when dealing
with customers who have emergency financial difficulties and find appropriate
solutions for them before starting to take legal measures against them.

13. BSF and its employees shall not discriminate unfairly between its current and future
customers on the basis of race, gender, religion, color, age, disability, marital status
or any other form of discrimination in various dealings.

14. BSF shall publishes the Principles and Rules for Protecting Consumers of Financial
Institutions on its website and in a clear place for the customer.

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 15. BSF shall put the working hours of the branch in the main entrance to the branch and
on its website, in addition to the working hours of providing telephone services.

16. BSF shall issues a clearance letter and provide it to the customer through one of the
documented channels immediately upon payment of the debt dues or payment of
the agreed settlement amount, and without the need to submit a request from the
customer, except for cases in which court decisions have been issued.

17. BSF shall informs the customer through documented channels of the consequences
of his/her credit record/history with the credit information companies (SIMAH) in the
event of reaching a settlement by dropping the BSF for the remaining amounts that
the customer has not paid out of the total obligation.

18. BSF shall provide the customer, upon his/her request, with a detailed obligation
account statement for free within one working day that includes all fees, term cost
and costs, including any additional costs, for one time in the event of a default or
request for early payment of the finance.

1.5 Promissory note Policy in case the purpose ended:

1. BSF shall mark the promissory note indicating that it has been paid for, and for the
purpose of returning it to the customer.

2. BSF shall communicate directly with the customer through documented

communication to return the promissory note.

3. BSF shall return the promissory note to the customer either by his presence at BSF
headquarters, or by sending it to the customer's national address upon his/her
request, BSF shall document the request and upon that the dispatch costs may be
charged to the customer.

4. In the event that the customer does not respond or cannot be reached to receive
the promissory note whose purpose has expired, BSF shall mark it for indicating
that the customer has paid its value and kept it in his/her file, and attach evidence
of communication with the customer without a response, BSF shall be committed
to return promissory note to the customer when requested.

5. In the event of renewing the relationship with the customer or amending the loan
or facility, BSF shall return the promissory note or promissory notes of the renewed
or amended contract to the customer and take another promissory note or
promissory notes in light of the new relationship.

1.6 Complaints Handling Stage:

1. BSF shall create a Complaint function, identify those responsible for handling the
complaints, and establish clear procedures for receiving and documenting

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 complaints, studying them, and responding to them within a period not exceeding
five working days from the date of receiving the complaint, each complaint shall be
recorded in special records, that include all necessary information related to the
subject of the complaint and the actions taken in its regard.

2. BSF shall provide multiple channels to receive complaints, inquiries and requests to
enable customers to submit complaints according to their preference, with ease
and at the times convenient for them and in line with the nature of BSF, provided
that it includes as a minimum:

3. Toll-free phone number, branches and/or website, smartphone apps, email.

4. BSF shall put the complaints handling mechanism in a clear place in its building, all
its branches, its website and smart phone applications.

5. BSF shall ensure that the mechanism of complaints handling and inquiries includes
the following:

- Procedures of submitting a complaint and/or inquiry.

- Documents the receipt of the complaint and/or inquiry and providing the customer
with a key reference number and the specified period for processing via a text
message to his/her mobile phone approved by BSF.

- Provides the customer with the concerned department with complaints handling
and/or inquiries through which the customer can communicate with BSF when
needed to follow up on the complaint and/or inquiry.

- Documents the channel used to communicate with the customer and keep relevant
records for at least five years.

- Handling complaints and/or inquiries received directly to BSF in accordance with any
instructions issued by SAMA.

- Provides the customer with the results of handling the complaint and/or inquiry in
detail and with the necessary documents that support the correctness of the
handling through one of the documented channels, in addition to responding to their
inquiries clearly and with high quality.

- In the event that the customer is not satisfied with the results of his/her complaint
and wants to escalate it, he/she must be provided with the followed escalation
mechanism to a higher level within BSF or direct the complainant to the relevant
entity according to his/her preference.

6. BSF shall develop performance indicators to measure the handling of complaints

received by the BSF directly including (measuring customer satisfaction, measuring

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 the quality of complaints handling, SLA), and raising the results of the indicators on
a quarterly basis to the highest executive position in the BSF.

1.7 Communication with Customer Stage:

1. BSF shall exercise the necessary care to communicate with customers before
applying to the competent judicial authorities.

2. The documented means of communication that the bank has the right to use when
communicating with customers or their guarantors are limited to the following:

- Emails.

- Registered mail.

- National Address.

- SMS.

- Phone calls.

3. The communication content should include, as a minimum, the following:

- Name of the bank and the department concerned with the collection of defaulted
debts.

- Contact number for the concerned department and/or the third party.

- Working hours of the concerned department and/or the third party.

- Name of the employee, the financing entity and/or the third party, if the call is by
phone.

4. BSF shall comply with the following:

- Phone contact attempts with the customer shall not exceed ten times every thirty
days, and the customer shall be given the possibility to call back the number from
which the call was made.

- Documenting all telephone calls with customers (incoming - outgoing) and keeping
their records for a period not less than ten years from the date of the call. It must
also be made clear to the customer at the beginning of the phone call that it is
recorded.

- Enabling customers to evaluate their satisfaction upon completion of the phone call
(outgoing - incoming), provided that this is documented automatically.

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 - Setting the necessary standards to ensure that employees are committed to
providing clients with the correct information professionally about their current
situation in default and the legal procedures that the bank is entitled to take.

- Not to provide the customer with incorrect or irregular information about the
consequences of non-payment.

- Not to communicate with the customer by using envelopes written on the surface of
which words that does not indicate that they contain information about the
collection of bad debts or the like.

- Protecting customer financial and personal information and maintaining its privacy
and not using it except for specific and statutory professional purposes and with the
consent of the customer, not making any contact with anyone other than the
customer or his guarantor and verifying the identity of the recipient of the phone
call.

1.8 Credit Advisory

1. BSF shall ensure that credit advisory for home loans is not giving by the same
employee who has the authority to issue the loans.

2. BSF shall provide credit advisory to the customers by a certified credit advisor during
the home loans offer period.

3. BSF shall provide the customers with a clear explanation of the nature of the
proposed home loans financing, the risks it contains, the terms and conditions of the
contract, and the re-pricing mechanism (if any).

4. BSF shall respond to all customer inquiries with transparency and clarity.

5. BSF shall document all credit advisory communication using call recording.

Annexure

Annex
Consumer Protection Principles as per SAMA to be adhered by Bank:
Principle 1: Equitable and Fair Treatment
BSF must treat consumers equitably, honestly and fairly at all stages of their relationship to
the point that it becomes an integral part of the BSF culture. Moreover, due care must be
exercised and special attention must be given to low-income and less educated people, older
people and those with special needs of both sexes.

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Principle 2: Disclosure and Transparency
BSF must ensure that the information about products and services provided to consumers is
clear and comprehensible and that it is updated, clear, concise, accurate, not misleading, and
easy to access especially the key terms and features. This information must include a
description of the rights and responsibilities of each party and details of prices and
commissions charged by the BSF, taxes, exceptions, fines, types of major risks and benefits,
and the mechanism and consequences of terminating the relationship. Furthermore, BSF
must provide information about the alternative products and services it offers.

Principle 3: Education and Awareness

BSF must develop appropriate programs and mechanisms to improve the knowledge and
skills of consumers, raise their level of awareness, enable them to understand major risks,
and help them to make informed and effective decisions as well as help them know the
concerned entity to obtain information if needed.

Principle 4: Behavior and Work Ethic

BSF must work in a highly professional manner for the benefit of consumers during their
relationship, where BSF is primarily responsible for the protection of the financial interests of
the consumer. BSF must also provide the necessary human resources to achieve the above,
perform its business operations, and serve its consumers in all regions of Saudi Arabia where
it is located. Additionally, BSF must provide appropriate centers and documented
communication channels to serve these consumers.

Principle 5: Protection Against Fraud and Misuse

BSF must protect costumers’ assets against fraud and put in place technical and control
systems that are highly efficient and effective to limit and detect fraud, embezzlement or
misuse and take the necessary action if any incident occurs, in accordance with the relevant
regulations and instructions.

Principle 6: Protection of Data and Information Privacy

BSF must develop appropriate mechanisms according to the relevant applicable regulations,
instructions and policies to protect the privacy of consumers’ financial, credit, insurance
and/or personal information, provided that these mechanisms include all rights mentioned in
the Personal Data Protection Law. BSF must also establish high-level control systems that
include appropriate mechanisms specifying the purposes for which data is collected.

Principle 7: Complaints Handling

BSF must have an appropriate mechanism in place for consumers to submit their complaints,
and the mechanism must be clear and effective. In addition, BSF must consider each
complaint, take the measures and procedures necessary to fairly and effectively resolve the
complaint, and provide the best and most appropriate solutions without delay in accordance
with the relevant regulations and instructions.

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Principle 8: Competition
BSF must enable consumers to easily search and compare the best services and products and
their providers. It must also provide the best products, services, and prices to meet
consumers’ needs and desires, promote innovation, and maintain the quality of services and
products.

Principle 9: Outsourcing
When outsourcing services that involve dealing with consumers, BSF must ensure that
outsourced service providers comply with the requirements of these Principles and Rules
(where applicable), serve the interests of consumers, and bear the responsibility for
protecting them. BSF are not exempted from responsibility if the outsourced service provider
fails to comply with applicable laws, regulations and instructions in any of the assigned
operations or tasks as stipulated in the relevant instructions issued by SAMA.

Principle 10: Conflict of Interest

BSF must establish a written policy on conflict of interests. It must also ensure the existence
and implementation of the policies that help in identifying transactions that are likely to be a
source of conflict of interest. If a conflict of interest is likely to occur between BSF and any
other party, BSF must inform the responsible authority of these cases.

General Conduct Rules As per SAMA to be adhered by the Bank:

Rule No. (1)
BSF must encourage consumers to read the contracts and their annexes, the initial disclosure
form, the terms and conditions, and any documents that require the consumer’s approval or
signature. Moreover, BSF must verify consumers' knowledge of the content of these
documents and provide the updated terms and conditions through its electronic channels.

Rule No. (2)

BSF must provide information and/or documents to consumers clearly and accurately, and it
must avoid misinformation, fraud and deception.

Rule No. (3)

BSF must include all terms and conditions in the product or service application form,
provided that the warning statements include the potential risks if the product or service is
used in a way other than agreed upon. These terms and conditions must be drafted in Arabic
in a simple, clear and direct language. An English copy must be provided upon the
consumer’s request.

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Rule No. (4)
Without prejudice to Rule (8) of this section, BSF must inform the consumer, through a text
message to the mobile phone number registered with the BSF and the other documented
channels, of any change in the terms and conditions (if the agreement and relevant
instructions allow this change) at least 30 days before the change comes into effect. In
addition, BSF must enable the consumer to object in the event of their non-consent to the
notification received through one of the documented channels.

Rule No. (5)

When concluding the contract or agreement, BSF must provide the consumer with an initial
disclosure form that has an easy, clear and simple language, containing information on
products and services, details of calculating fees and commissions, and the term cost (if any).
BSF must also obtain an acknowledgment from the consumer that they have read and
understood such information and agree to its content.

Rule No. (6)

BSF must standardize the font size used (14 as a minimum) and ensure that it is clear and
readable in contracts and annexes, which include initial disclosure forms, terms and
conditions, documents, exceptions, and any other document requiring the consumer’s review
or signature. In addition, BSF must not request the consumer's signature (of any type) on any
empty or incomplete document, and it must protect and maintain consumers' documents
and signatures.

Rule No. (7)

BSF must provide the consumer with all documents related to the products or services in
paper or electronic format - according to the consumer's preference - immediately upon
obtaining them. If provided in paper format, BSF must obtain an acknowledgment of receipt
from the consumer. Such documents include the contract and its annexes, insurance
documents, terms and conditions, schedule of fees and commissions.

Rule No. (8)

BSF must not raise the amount of fees and commissions to be paid by a consumer after
obtaining the service or product and signing the contract/agreement or the like. An exception
is the fees and commissions related to a third party, provided that they are associated with
the consumer’s benefit from the financed asset, and the consumer must be notified of this
when signing the contract.

Rule No. (9)

BSF must set a list of fees and commissions (including third party fees) in a visible place in the
head office and branches and publish it on the websites.

Rule No. (10)

When a consumer applies for a service or product, BSF must:

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 a) Send a text message to the consumer (immediately after submitting the application)
containing, as a minimum: the application subject, the reference number, expected
implementation date, and toll-free number for inquiries.

b) Notify the consumer of the acceptance or rejection of the application via a text
message, within a maximum of (3) working days. If the application is rejected, the
notification must include the reason for this rejection in addition to the mechanism
of objection to it.

c) As an exception to paragraph (B), notification of insurance claims shall be in writing,

and its duration shall be determined in accordance with the periods specified in the
relevant instructions. The notice must include, as a minimum, the following:

▪ when the claim is accepted entirely or partially: the settlement amount, explanation
of how the settlement amount was decided, and the justification for reducing the
settlement amount or accepting the claim in partially.

▪ When the claim is rejected: the reason for the rejection, supporting documents for
the decision, if requested by the customer.

Rule No. (11)

BSF is responsible for protecting consumer information and maintaining its confidentiality,
whether the information is maintained by the institution or by a third party. Moreover, BSF
must:

a) Provide a secure and confidential environment in all its channels to ensure the
confidentiality of consumer information when executing transactions, establish
appropriate work procedures and effective control systems for protecting consumer
information, and detect and address any current or expected infringements.

b) Ensure that all permanent and temporary employees as well as employees of the
third party, whether they are on the job or after leaving their posts, sign the
consumer information confidentiality form, ensure not to disclose personal
information, and limit access to such information to authorized persons only.

c) Maintain the confidentiality of consumer information in accordance with the relevant

laws and instructions.

Rule No. (12)

BSF must ensure that all electronic channels are available and secure. In the event that
consumers experience direct loss as a result of penetration of these channels and/or weak
security, these consumers must be compensated for the losses. In addition, BSF must:

a) Adopt a number of identity authentication methods for accessing electronic services

and take the necessary measures to reduce electronic fraud.

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 b) Mention the purpose of any text message containing a one-time password (OTP) to
consumers by stating, for example, that it is for identification of a beneficiary,
password reset, access to account, or money transfer.

Rule No. (13)

BSF must ensure that its systems and services are continuous and ready to meet the needs of
consumers at all times. Additionally, BSF must not benefit from any refunds that may arise
due to a technical error or malfunction; such refunds must be returned to each affected
consumer without delay and within (5) working days without waiting for claims. Moreover,
BSF must repair the malfunction according to the requirements of business continuity,
communicate with the affected consumers to inform them of the error and the corrective
measures taken through any of the documented channels, and announce the same through
all available channels.

Rule No. (14)

BSF must ensure that all employees perform their duties efficiently and effectively and that
they follow codes of conduct and ethics with high professionalism when serving current or
potential consumers at all times. It must also train front-line employees who deal directly
with consumers on a regular basis and ensure that they obtain the necessary professional
certificates to be familiar with the skills of dealing with consumers, the products and services
provided to consumers, and the relevant instructions issued by SAMA.

Rule No. (15)

Without prejudice to the relevant instructions, BSF must monitor the performance of front-
line employees through (periodic/confidential) visits to the branches, call center, and
collection staff (including third party employees) to ensure that they follow the best practices
when dealing with consumers and that they are familiar with the instructions issued by SAMA
as well as the products and services provided by the institution. In addition, semi-annual
reports must be submitted to the senior management to monitor the performance of
employees.

Rule No. (16)

BSF must continue to educate consumers, through all of its channels, about topics including,
as a minimum: products and services and their risks, handling of debt and default, fraud,
dealing with unlicensed companies or financial or investment institutions, savings, financial
education and planning.

Rule No. (17)

BSF must provide multiple channels dedicated to receiving complaints, inquiries and requests
and enable consumers to submit complaints easily and timely according to their preference,
in line with the nature of BSF. These channels must include at a minimum: the toll-free
number, branches and/or website, smart phone applications, email.

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Rule No. (18)
BSF must display the complaint handling mechanism in a visible place in the head office and
branches and publish it on the websites and smart phone applications.

Rule No. (19)

The mechanism for handling complaints and inquiries must include the following:

a) Procedures for submitting a complaint and/or inquiry.

b) Documenting receipt of the complaint and/or inquiry and providing the consumer
with the main reference number and the specified complaint-handling period via a
text message to the mobile phone number registered with BSF.

c) Providing the consumer with contact information of the department concerned with
handling complaints and/or inquiries in case the consumer needs to communicate
with BSF to follow up on the complaint and/or inquiry.

d) Documenting the channel used to communicate with the consumer and maintain its
records for a minimum of five years.

e) Handling complaints and/or inquiries sent directly to BSF in accordance with the
instructions issued by SAMA.

f) Providing the consumer with the results of complaint handling and/or answers to the
inquiries in detail with documents that confirms correct handling through one of the
documented channels, in addition to responding to their inquiries clearly and with
high quality.

g) If a consumer is not satisfied with the result of the complaint handling and wants to
escalate, the consumer should be provided with the escalation mechanism to a
higher level within BSF or be directed to the competent authority, as preferred.

Rule No. (20)

BSF must develop performance indicators to measure the handling of directly-filed
complaints, including (measuring customer satisfaction, measuring complaint handling
quality). The results must be reported quarterly to the highest executive position in BSF.

Rule No. (21)

BSF must provide, within (5) working days, the following documents at the request of the
consumer:

a) A copy of the original forms for any service or product.

b) A copy of the updated terms and conditions of the product or service.

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 c) A copy of the contracts concluded with the consumer, including the documents of
collaterals and guarantees.

d) A copy of the insurance policy, if any.

Rule No. (22)

BSF must provide a toll-free number for consumers to call from inside Saudi Arabia via
landline and mobile phones, in addition to a phone number for calling from outside Saudi
Arabia to submit complaints and inquiries. The toll-free number must be clearly displayed on
the home page of BSF website in addition to all other channels.

Rule No. (23)

BSF must take into account the humanitarian cases and its social responsibility when dealing
with consumers who have emergency financial difficulties and find suitable solutions before
starting to take the legal actions against them.

Rule No. (24)

BSF, along with its personnel, must not treat current and future consumers differently in a
biased or unfair manner in their various dealings based on their race, gender, religion, color,
age, disability, marital status or any other forms of discrimination.

Rule No. (25)

BSF must publish the Financial Consumer Protection Principles and Rules on its website in a
visible place.

Rule No. (26)

BSF must display the branch working hours at the branch’s main entrance and on the
website, in addition to the working hours for phone services.

Special Conduct Rules

Rule No. (1)
Fees, commissions and administrative service charges to be received by BSF from the
consumer must not exceed the amount equivalent to (1%) of the financing amount or SAR
5,000, whichever is less. These fees, commissions and administrative service charges may not
be deducted before signing the contract, with the exception of real estate valuation fees,
which may be deducted after the consumer obtains the initial approval for real estate
financing.

Rule No. (2)

Without prejudice to Rule (1) of this section, BSF must, when granting real estate financing,
take an acknowledgement from the consumer (before starting the contracting procedures)
that states the BSF’s right not to refund the real estate valuation fees if that the procedures

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 are not completed for a reason related to the consumer. However, real estate valuation fee
must be refunded in the following cases:

- Failure to grant the financing for a reason not related to the consumer.

- If the consumer cancelled the request before the real estate valuation.

Rule No. (3)

BSF must issue and provide the consumer with a letter of clearance through one of the
documented channels immediately after the payment of the debt dues or the agreed
settlement amount without a request from the consumer, except for cases in which judicial
decisions are issued.

Rule No. (4)

BSF must inform the consumer through documented channels of the consequences on their
credit record with credit information companies when a settlement is reached with BSF to
drop the remaining unpaid amounts of the total loan.

Rule No. (5)

BSF must provide the consumer, upon their request, with a detailed amortization schedule
free of charge within one business day that includes all fees, term cost and other costs,
including any additional costs, for one time in the event of defaulting or for early payment.

Rule No. (6)

BSF ensure that the merchant customers do not pass and/or impose any additional charges
on credit, charge, or debit card holders when paying at points of sale and e-commerce
websites or making transactions carried out through payment service providers. BSF also
responsible for monitoring merchants’ deposits to ensure that they are proportionate to the
nature of business. In addition, BSF responsible for providing training to store staff on the use
of POSs, while providing them with the required operational guidelines.

Rule No. (7)

BSF must include in the agreement concluded with their merchant customers that the
merchant must not charge additional fees on the cost of products or services if consumers
use credit, debit and prepaid cards or payment service providers to pay at points of sale and
e-commerce websites.

Rule No. (8)

BSF must notify consumers immediately of debit or credit or debit transactions in their
accounts through SMS messages in accordance with the relevant instructions.

Rule No. (9)

BSF must set the maximum limit for the following: Transfers, daily withdrawals, POS
transactions, online purchases and SADAD transactions. Moreover, BSF must notify

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 customers of such limit when they receive the service and they must review the limit
annually as a minimum.

Rule No. (10)

BSF must provide a 24/7 toll-free number that allows consumers to call from inside Saudi
Arabia via landline and mobile phones, in addition to a number for calling from outside Saudi
Arabia, provided that it offers the following services, as a minimum:

a) Reporting lost or stolen debit or credit cards.

b) Reporting fraud, suspicious unauthorized transactions or unauthorized access to

their data or accounts.

c) Objecting to credit card transactions.

Rule No. (11)

BSF must provide a new debit card to the consumer free of charge upon their request
through a trusted channel or at the request of a legally authorized person. The debit card
must be reissued at least (30) days before the expiry date, unless the consumer requests
otherwise. In addition, BSF must ensure that the card has been issued and delivered to the
consumer or the legally authorized person with a mechanism in place to verify the identity of
the consumer.

Rule No. (12)

BSF must verify that all ATMs, POS and other online services meet the needs of consumers
and facilitate the completion of transactions according to the latest methods. BSF must
comply with the following:

a) Performing periodic maintenance of all ATMs and check their readiness and status at
all times.

b) Using modern and advanced technologies to remotely monitor the performance of

ATMs.

c) Circulating fit banknotes and replacing and withdrawing damaged banknotes from
circulation at all times.

Rule No. (13)

BSF must properly process claims related to incorrect and incomplete transactions made
through MADA cards in all services (ATMs, POS, e-commerce transactions) within two
working days from the date of the transaction.

Rule No. (14)

BSF must comply with the following:

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a) Issuing a credit or charge card based on a request submitted by the consumer
through the documented channels.

b) Informing consumers of the cash withdrawal limit and fees on withdrawals from
technical machines and systems such as ATMs for credit and charge cards.

c) Not to charge the annual fees for credit or charge cards until they are activated by
the consumer. The BSF may cancel the card if it is not activated within 90 days from
the date of issuance.

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