Dr. Omran: Adding new commodities and services to consumer finance system will promote installment buying
Dr. Omran: FRA encourages the spread of renewable energy solutions for residential use through consumer financing mechanism
FRA’s BOD agrees to add new commodities and services in the list of products and services that fall under the provisions of Law No. (18) of 2020 regulating consumer finance activity. This step facilitates financing and helps consumers meeting their needs. This step comes within the framework of Prime Minister’s initiative to stimulate consumption within the national economy and promotion of local product through consumer finance companies, including companies that provide finance using commercial payment cards.
Dr. Omran – FRA’s Chairman states that adding new commodities and services to consumer finance companies is a quick response to an initiative set up by Prime Minister Mostafa Madbouly to stimulate consumption and encourage the local product to overcome the negative economic repercussions of the Corona virus pandemic by reviving productive and service sectors after being affected for the last four months .
FRA’s Chairman emphasizes that Board decision No. (114) of 2020 adds new commodities and services to consumer finance activity aiming at stimulating several production activities by distributing their products and encouraging selling in installments in several sectors that include production and / or distribution of furniture and home appliances , clothes , shoes, Bags, watches, jewelry, eyewear, medical and cosmetic products, sports tools , clothing, toys, books , stationery, food and auto parts. Consumer finance companies shall provide financing together with companies that provide financing through commercial payment cards which are used by consumers to purchase based on contracts with a network of vendors and providers of commodities and services.
The Board’s decision allows consumers to finance their purchases from shops and various commercial chains using a single bill without putting obstacles in the type of products permitted to be purchased. Also, the consumer has the freedom to purchase from commercial chains in installments and at agreed deadlines. So, citizens of limited and middle income can obtain their needs and pay in installments over years.
Dr. Omran stresses that after subjecting consumer finance activity under the Authority’s supervision, many positive results are expected to occur at the level of the national economy, including increasing the volume of investments and operating rates in many service activities. Therefore, the Authority has been keen to increase the attractiveness of the national economy to invest in service projects by activating and maximizing the demand for these services. FRA adds new services to the consumer finance system – by using commercial payment cards – to enable a broad base of consumers to benefit from vehicle maintenance services of all kinds, maintenance of consumer appliances and equipment, finishes and household equipment. In addition to renewable energy solutions for homes which help in achieving sustainable development within the Egyptian society and improve the energy efficiency of lighting and appliances.
It is worth mentioning that Law No. (18) of 2020 on regulating consumer finance activity had previously authorized consumer finance practitioners to issue commercial payment cards that consumers obtain to purchase consumer goods and services through a network of vendors and providers of goods and services who concluded an agreement with the consumer finance company.
FRA’s Chairman notes that the largest beneficiary from consumer finance law and creating real control over the consumer finance activity is the simple citizen (the consumer or the borrower). He adds that the Law sets clear controls and sound professional rules for financing. Also, it assigns FRA to receive any complaints from consumers, protects them from harmful practices and eliminates manipulation.