8 terms must be available in the contracts of consumer finance companies with their customers .. know them

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The Government submitted to the Parliament a draft law regulating the activity of consumer finance to subject the activity of installment in Egypt for goods and services to the control of the Financial Supervisory Authority.

The draft law specifies the conditions that will be met in contracts concluded by companies with their customers.

Article [9] stipulates that the consumer finance companies shall conclude a contract between them and their customers in accordance with the model established by the Authority, including in particular the following:

1: Identification of goods or services specifically financed in the name of ignorance

2: A statement of the price of the goods or services at the time of purchase and the payment made by the financing agent at the time of conclusion of the contract

3: Determine the amount of the financing provided by the company and the period of payment, the number of installments, the conditions and the value of each of them and the interest rate taken to calculate the value of the financing, whether fixed or variable, without complying with the limits stipulated in any other legislation.

4: A statement of the guarantees obtained by the financing company, including the prohibition of acting until fulfillment.

5: The customer's declaration to the company to disclose the funding data to the Authority and the credit-query companies.

6: The right of the financing agent to expedite the fulfillment and the related conditions.

7: The right of the company to sell or deduct the debts owed to it

8: The contract shall include the license number issued to the company and the benefit of being subject to the supervision and supervision of the Authority

Consumer finance companies can provide financing through commercial payment cards and payment systems based on their contract with a network of sellers and providers of consumer goods and services. In this case, the companies are obliged to enter into a contract between them and their customers in accordance with the model established by the Authority, including in particular items 4 to 8 of paragraph Previous as well as what comes

1 – A statement of the sellers and suppliers of goods and services at the time of conclusion of the contract and the method of updating it by deletion or addition throughout its validity period.

2. Determine the maximum amount of financing provided by the company and its repayment terms and the rate of return that is used mainly for the financing account and whether it is fixed or variable, without complying with the limits stipulated in any other legislation.

The bill defines consumer finance companies as each activity aimed at providing financing for the purchase of goods and services for consumption purposes, including financing through commercial payments cards or payment systems, and is not considered to be a consumer financing with less than six months' repayment period.