RIYADH, 3 January — Over 106,000 Saudis and expatriatess were blacklisted by Saudi banks until the end of Nov. 2000. Almost every leading bank in the Kingdom has over 10,000 names of customers in their blacklist, or the 'C-List,' according to banking sources.
Other blacklisted customers acknowledged outstanding liabilities against them. They could not repay the sums drawn on credit cards issued by local banks because accumulating liabilities and interest eventually made it impossible to clear their debts.
Some of these customers are willing to pay back their dues provided the interest on the loans are dropped by the banks and their names struck off the embarrassing list. They claim to have been denied banking services because of the list.
A bank source said banks have been trying to persuade by telephone and letter the defaulters to pay their dues. The banks have also offered to receive the sums in easy installments and dropping the commission, the source said. Some customers have responded positively to these offers which will make them eligible for a non-liability certificate thus ending their problems in bank dealings.
The system of blacklisting was introduced by Saudi banks five years ago with the approval of the Saudi Arabian Monetary Agency in a bid to curb cheating and payment default by some customers. The banks make sure these days that name of a new applicant for loan or credit card is not on the C-List.
Those most affected by the C-List are employees in the government sector who are given salaries through banks and who wish to use the credit cards and other banking services.
The sources expressed their satisfaction over the circulation of each bank's C-List among local banks, but declined to publish names. The list helped them collect bad debts and maintain their guard against losing millions of riyals from customers likely to cheat them. Some unscrupulous customers stop repaying the dues after borrowing large sums on their cash or credit cards.
Some of the blacklisted customers protested against their names being included in the list. They considered themselves victims of the disputable demands. They consider their interests were greatly damaged because they were refused loans, murabaha or credit cards by the local banks. (Asharq Al-Awsat)
Saudi banks blacklist over 100,000 clients
By Khidr Al-Marhoun
RIYADH, 3 January — Over 106,000 Saudis and expatriatess were blacklisted by Saudi banks until the end of Nov. 2000. Almost every leading bank in the Kingdom has over 10,000 names of customers in their blacklist, or the 'C-List,' according to banking sources.
Other blacklisted customers acknowledged outstanding liabilities against them. They could not repay the sums drawn on credit cards issued by local banks because accumulating liabilities and interest eventually made it impossible to clear their debts.
Some of these customers are willing to pay back their dues provided the interest on the loans are dropped by the banks and their names struck off the embarrassing list. They claim to have been denied banking services because of the list.
A bank source said banks have been trying to persuade by telephone and letter the defaulters to pay their dues. The banks have also offered to receive the sums in easy installments and dropping the commission, the source said. Some customers have responded positively to these offers which will make them eligible for a non-liability certificate thus ending their problems in bank dealings.
The system of blacklisting was introduced by Saudi banks five years ago with the approval of the Saudi Arabian Monetary Agency in a bid to curb cheating and payment default by some customers. The banks make sure these days that name of a new applicant for loan or credit card is not on the C-List.
Those most affected by the C-List are employees in the government sector who are given salaries through banks and who wish to use the credit cards and other banking services.
The sources expressed their satisfaction over the circulation of each bank's C-List among local banks, but declined to publish names. The list helped them collect bad debts and maintain their guard against losing millions of riyals from customers likely to cheat them. Some unscrupulous customers stop repaying the dues after borrowing large sums on their cash or credit cards.
Some of the blacklisted customers protested against their names being included in the list. They considered themselves victims of the disputable demands. They consider their interests were greatly damaged because they were refused loans, murabaha or credit cards by the local banks. (Asharq Al-Awsat)
