Debt collectors no longer need a licence to work in Saudi Arabia, the Ministry of Commerce has decided.

The ministry said in a statement the move was meant to facilitate debt collection and improve the business environment.

“The abolition of the licensing requirement for debt collection activity came in an effort to facilitate the conduct of economic business, reduce the requirements related to this, improve the business and economic environment in the Kingdom, and upgrade it in line with international best practices,” the ministry said.

Debt collectors may work independently or for debt-collection agencies, and some are also attorneys.

Debt collectors get paid when they recover a delinquent debt.

Some collection agencies negotiate settlements with consumers for less than the amount owed.

In the wake of the COVID-19 pandemic additional rules have been put in place to protect consumers faced with debt problems.

SOURCE : GULF NEWS

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