Consumer Credit Code

Practice on Consumer Credit & Charging

About this Code

1. This Code has been prepared jointly by the Bahrain Association of Banks (“BAB”) and the Central Bank of Bahrain (“Central Bank” or “CBB”). It sets out minimum standards for retail banks and financing companies (thereafter referred to as Central Bank licensees or Licensees) to follow when providing credit and other services on which fees and/or interest (profit margin in case of Shari’a compliant financing) are payable by personal customers in the Kingdom of Bahrain.
   
   
2. This Code applies where any Central Bank licensee provides to a consumer:
   • Loans, overdrafts, etc
   • Any other type of financial product creating a creditor – debtor relationship (including Shari’a compliant credit facilities of all types)
   • Any other financial service for which a Central Bank licensee charges a fee.
     
     
3. Adherence to this Code is mandatory for all Central Bank licensees. Consumers are encouraged to inform the Central Bank where they believe there has been noncompliance with the Code.

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