Individuals must not submit promissory notes for credit card financing: SAMA

SAMA orders corrective plans within 30 days

The Saudi Central Bank (SAMA) directed finance companies to stop requesting promissory notes or any commercial paper from individual customers when offering credit card financing products.

SAMA explained that this step comes after the recent practice of obtaining promissory notes from individual customers when providing credit card financing.

In a recent circular, SAMA mandated finance companies to update their internal policies, procedures, and controls accordingly, noting that the circular will come into effect on Feb. 1, 2026.

It also called on finance companies to provide SAMA (Customer Protection Supervision Department) within 30 days from the date of the circular with a corrective action plan.

The plan should, at a minimum, include the return or cancellation of promissory notes or commercial papers previously obtained from individual customers that do not comply with the circular.

The implementation period should not exceed six months from the date of the circular.