The Financial Regulatory Authority (FRA) has extended by six months the grace period granted to companies and entities operating in the non-banking financial sector before they are prohibited from dealing with debt collection companies that are not registered in the authority’s newly established debt collection register.
Issued by the FRA’s Board of Directors under Decision No. 139 of 2026, chaired by Islam Azzam, the decision extends the deadline for non-banking financial institutions until 22 January 2027. The extension is intended to provide companies with additional time to meet the registration requirements while strengthening regulatory oversight of the sector and curbing unregulated practices.
To date, the FRA has approved the registration of two debt collection companies under Board Decision No. 278 of 2025. The authority is currently reviewing applications submitted by more than 30 additional companies seeking registration.
The registration framework requires companies to disclose comprehensive information, including their legal name, legal structure, business purpose, registered head office, executive management, legal representatives, and official contact details, enhancing transparency and enabling market participants to verify licensed debt collection firms.
Under the regulations, companies seeking registration must submit an application to the FRA accompanied by documents demonstrating compliance with the applicable requirements, including the company’s articles of association, audited financial statements, and previous debt collection contracts. The FRA will review each application and issue its decision within 30 days of receiving all required documentation.
The regulations require debt collection companies to be incorporated as commercial entities and to include debt collection among their authorised business activities. They must also have a minimum issued and paid-up capital of EGP 10m, or its equivalent in foreign currency, and shareholders’ equity of no less than EGP 20m.
Where the minimum shareholders’ equity requirement is not met, companies may still qualify for registration provided they have been engaged in debt collection activities for at least three years before submitting their application. In all cases, however, shareholders’ equity must not be lower than the company’s paid-up capital.
As part of the authority’s efforts to strengthen market oversight and enhance consumer protection, the decision also requires companies and entities operating in non-banking financial activities to inform customers of the debt collection firms they have contracted, the methods available for verifying collectors’ identities, and the official communication channels through which they can be contacted.
They are also required to monitor complaints submitted against debt collection companies and take appropriate corrective measures where necessary.
The decision further authorises the FRA Chairperson to impose administrative measures on registered debt collection companies that violate the regulatory framework, including issuing warnings, suspending registrations, or removing companies from the register, with the aim of ensuring full compliance and safeguarding the interests of market participants.
