The fees of the customer credit inquiry service at Egypt’s Financial Regulatory Authority (FRA) has been reduced by up to 75%, FRA Deputy Chairperson Islam Azzam has revealed.
The move comes as part of the authority’s initiative to facilitate work among companies and providers of consumer finance services. It aims to contribute to increasing the purchasing power of the community.
Azzam praised the Egyptian Credit Bureau (I-Score) speedy response to the FRA’s initiative, and its directive to support and urge consumer finance activity 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 company 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.
Azzam said that a discount of 75% will 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 licence for the consumer finance company.
During this period, an annual evaluation will be prepared based on the declarations and the joint entity’s use of the services provided by I-Score, with regard to inquiries and declarations.
It is noteworthy that the FRA initiative and attention to reducing the cost of conducting credit inquiry processes was launched following Azzam’s meeting in March with Egypt’s 22 consumer finance companies.
This was followed by the issuance of a decision on the articles of association of the Egyptian Federation for Consumer Finance Organizations.