The Financial Regulatory Authority (FRA) has approved the registration of Egy Serv and Egyptian International in the Register of Debt Collection Companies for entities operating in non-bank financial activities.
The two firms are the first to be registered under the new framework established by the FRA to regulate debt collection activities and provide a clear supervisory and professional structure for the sector.
The move comes in implementation of FRA Board Resolution No. 278 of 2025, which established a register for companies seeking to undertake debt collection activities and prohibited entities from dealing with unregistered collection firms. The resolution also granted companies and entities operating across non-bank financial activities a six-month grace period to regularise their status, ending on 22 July.
Islam Azzam, Chairperson of the Financial Regulatory Authority, said that the establishment of the register and the commencement of company registrations mark an important step towards enhancing the efficiency and organisation of the non-bank financial market through clear rules and standards governing debt collection activities. He noted that the framework would help strengthen trust among all market participants while raising standards of governance and professional discipline.
Azzam added that the FRA continues to develop the regulatory and supervisory frameworks governing non-bank financial activities in line with rapid market developments, while maintaining a balance between supporting market growth and protecting the rights of clients and stakeholders.
Under Board Resolution No. 278 of 2025, debt collection companies are required to register key information, including their legal form, business purpose, registered head office address, executive management details, legal representatives and contact information, to ensure transparency and facilitate verification of authorised entities.
The resolution prohibits companies and entities operating in non-bank financial activities from engaging unregistered debt collection firms to recover outstanding payments after the grace period expires, thereby strengthening oversight of the sector and limiting unregulated practices.
It also outlines registration procedures, requiring applicants to submit a request to the FRA along with supporting documentation demonstrating compliance with the prescribed requirements. These include the company’s articles of association, audited financial statements and previous debt collection service contracts. The FRA is required to review applications and issue a decision within 30 days of receiving all required documents.
The resolution stipulates that applicants must be incorporated under a recognised commercial legal structure, include debt collection among their authorised business activities, maintain issued and paid-up capital of at least EGP 10m or its foreign currency equivalent, and have shareholders’ equity of no less than EGP 20m.
Where the minimum equity requirement is not met, applicants must demonstrate that they have been engaged in debt collection activities for at least three years prior to registration, provided that shareholders’ equity remains no less than paid-up capital.
Registration is valid for three years and may be renewed for similar periods, subject to continued compliance with the registration requirements. Renewal applications must be submitted at least three months before the registration expires.
The regulations require registered companies to adhere to principles of integrity, honesty and professionalism and prohibit any practices that could harm clients or counterparties. Their activities must be limited strictly to debt collection and may not extend to financing activities.
The framework also regulates collection mechanisms to safeguard the integrity of financial transactions. Collection companies are prohibited from depositing collected funds into their own accounts and must use approved non-cash payment methods or cheques issued directly in favour of the creditor entity, thereby enhancing transparency and reducing operational risks.
In addition, the resolution emphasises the confidentiality of client data and prohibits its disclosure or use for purposes other than those authorised by law. Registered companies are required to submit semi-annual reports to the FRA detailing their activities, contracting entities, amounts collected and collection methods used.
To strengthen market oversight and protect citizens’ rights, companies and entities operating in non-bank financial activities must inform clients of the debt collection companies they engage, explain how collectors’ identities can be verified, and provide official communication channels. They are also required to monitor complaints filed against collection firms and take any necessary corrective measures.
The resolution grants the Chairperson of the FRA authority to take administrative action against companies that violate the regulations, including issuing warnings, imposing temporary suspensions or permanently removing firms from the register, to ensure compliance and safeguard the interests of market participants.
