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In response to FRA?s Initiative: Reducing credit inquiry fees for consumer finance by up to 75%

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Dr. Islam Azzam – FRA Deputy Chairman reveals the details of the Authority’s initiative. He emphasizes that this initiative aims at increasing the purchasing power of the community. Successive meetings were held with officials of the Egyptian Credit Bureau (I-Score) to agree on setting up a specific mechanism to reduce the financial burdens borne by the companies.

Dr. Azzam praised the Egyptian Credit Bureau (I-Score) speedy response to FRA’s initiative and its directive to support and urge consumer finance entities to participate in its services. I-Score’s response implements the provisions of Article 113 of the Central Bank of Egypt Law issued in September 2020. The Egyptian Credit Bureau (I-Score) agreed to grant a discount of up to 50% on the credit report’s cost for the customer, ensuring that the cost now stands at EGP 30 for corporate customers and EGP 15 for individuals.

Dr. Azzam noted that a discount of 75% would be granted for the cost of a credit report for consumer finance customers. This discount covers the activities related to: durable goods; personal supplies; sports equipment; clothes; toys; books; stationery; and foodstuffs. It also means that the cost of the credit report now stands at only EGP 5 for individuals.

For his part, I-Score Chairperson Mohamed Kafafi said that the company intends to grant a promotional period of one year from the date of the license for the consumer finance company. During this period, an annual evaluation will be prepared based on the declarations and the entity’s use of the services provided by I-Score regarding inquiries and declarations. Accordingly, the annual renewal value shall be determined.

It is noteworthy that FRA’s initiative and attention to reduce the cost of conducting credit inquiry processes was launched following Dr. Islam’s meeting in March with Egypt’s 22-consumer finance companies. Then, this meeting was followed by the issuance of a decision on the statute of the Egyptian Consumer Finance Federation.

This news item was originally published by the Finance Regulatory Authority (FRA EG). For more information, please see the Source Link.

Regulator Information

Abbreviation: FRA
Jurisdiction: Egypt

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