Banks obligated to issue clearance certificates to customers

This news has been read 25168 times!

KUWAIT CITY, Sept 14: The Governor of the Central Bank of Kuwait Basel Al-Haroun affirmed that banks are obligated to issue clearance certificates to customers within a specific period, but there are banks that are not committed in this regard, reports Al-Rai daily.

He explained that the Central Bank of Kuwait discovered that some banks were failing to implement the conditions of the amended mechanisms to issue a clearance certificate to customers through the electronic service, which was agreed upon by banks before it came into effect on December 15, 2020. A modified mechanism had been set in place for the payment or transfer of debts from banks and the transfer of customers from one bank to another.

Based on the bank’s request to adopt a unified approach to facilitate the issuance of a clearance certificate for customers who obtained credit cards from banks, the banks agreed on the following procedures:

1 – In the event that customers are able to provide cash guarantees of 100 percent of the credit limit, the bank will cancel the card and issue a clearance certificate on the same day or the next working day.

2 – If the customer wishes to transfer his salary to another bank and brings a Letter of Undertaking (LOU) from the transferring bank in the amount of 100 percent of the credit limit of the card, the current bank will issue a clearance certificate on the same day or on the next working day maximum.

3- In the absence of aforementioned (1) and (2) points, a clearance certificate will be issued within ten working days from the date of credit card cancellation.

This news has been read 25168 times!