Article 3 of the Saudi Credit Information Law
المادة 3 من نظام المعلومات الائتمانية
Sets the scope of the Law: it applies to credit information companies, members, and the government and private bodies that hold credit information.
Official text (Arabic)
This article has not been amended since the law was issued.
يسري هذا النظام على الشركات والأعضاء والجهات الحكومية والخاصة التي لديها معلومات ائتمانية .
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 3 explained in plain English
This article states who is subject to the provisions of the Credit Information Law, namely:
- Companies: the credit information companies licensed to collect and keep information and provide it to members, as defined in Article 1.
- Members: the government or private bodies bound by a contract to exchange credit information with at least one of those companies.
- Government and private bodies that hold credit information, even if they are not a member bound by a contract with a company.
This means the scope of the Law is wide: the test is not only the type of body, but whether it holds credit information. A body that holds data on consumers' credit dealings, such as loans, installment sales or credit cards, falls within the scope of the Law.
This article is consistent with the aim of the Law in Article 2, which is to regulate the collection, exchange and protection of credit information. It also paves the way for Article 4, which requires government bodies that hold credit information to make it available to licensed companies, and requires companies to collect, exchange and protect the information.
If a body is unsure whether it is subject to the Law or what its obligations under it are, it should preferably consult a lawyer specializing in banking and finance.
Practical example
A company in Jeddah sells electrical appliances in installments and keeps data on how its customers pay their installments. This data is credit information as the Law defines it, so the company is one of the private bodies that hold credit information, and the Law applies to it.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 3 of the Saudi Credit Information Law
To whom does the Credit Information Law apply?
It applies to credit information companies, members, and government and private bodies that hold credit information.
Is a body that holds credit information but is not a member subject to the Law?
Yes. The article covers government and private bodies that hold credit information, in addition to members and companies.
More articles on Definitions and Scope of the Law
- Article 1
Defines the key terms of the Law, such as credit information, member, consumer, companies, credit record and public records.
يقصد بالألفاظ والعبارات الآتية أينما وردت في هذا النظام المعاني المبينة أمامها، ما لم يقتض السياق خلاف ذلك : المؤسسة : مؤسسة النقد العربي السعودي . المعلومات ال
- Article 2
States that the aim of the Law is to set the general foundations and controls for collecting credit information about consumers, exchanging it and protecting it.
يهدف هذا النظام إلى وضع الأسس العامة والضوابط اللازمة لجمع المعلومات الائتمانية عن المستهلكين وتبادلها وحمايتها.
- Article 16
Assigns the Governor of the Institution to issue the Law's Implementing Regulations within 180 days of the Law's issuance and publish them in the Official Gazette.
يصدر محافظ المؤسسة اللائحة التنفيذية لهذا النظام خلال (مائة وثمانين) يوما من تاريخ صدوره، وتنشر في الجريدة الرسمية.
- Article 17
Provides for publishing the Law in the Official Gazette, its taking effect 180 days after publication, and repealing provisions that conflict with it.
ينشر هذا النظام في الجريدة الرسمية، ويعمل به بعد (مائة وثمانين) يوما من تاريخ نشره، ويلغى ما يتعارض معه من أحكام.
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.