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  • Additional Public Disclosure for Credit Facilities

    • BC-1.4.10

      In addition to the requirements under Paragraph BC-1.4.9, licensees must publicly disclose by conspicuous notice for credit facilities:

      (a) The current Annual Percentage Rate (APR) as calculated using the APR methodology in Paragraph BC-1.4.23. The APR displayed must be calculated based on the following scenarios. Amount borrowed is BD3,000 for a 1-year term;
      (b) The Annual Percentage Rate (APR), must be broken down as follows:
      (i) The annual nominal interest/profit rate payable;
      (ii) Administration/handling fees;
      (iii) In the case of finance lease contracts/ijara or deferred purchase contracts, any fees for purchasing the asset; and
      (iv) Any other mandatory charges (contingent costs are excluded); and
      (c) The terms and conditions for early repayment, partial or full, of the credit agreement, or for any change in the terms and covenants of the credit agreement, as well as any relevant charges (where permitted) and the way in which these are calculated
      January 2014

    • BC-1.4.11

      The APR is a standard measure that allows customers to compare total charges for instalment financing facilities on a like-for-like basis. The APR allows the customer to compare the total charge for credit over differing periods (e.g. – two versus three years) or offered by different retail banks with differing payment profiles and taking into account the payment of any other fees payable as a condition of the contract, such as administration fees or insurance premiums.

      January 2014

    • BC-1.4.12

      Any advertising through any media means of credit facilities, offered by the licensees must specify only the APR (including all fees and charges) and no other rates, i.e. nominal, base, flat or rates by any other names.

      January 2014