CM-7.5.3
Past version: Effective from 01 Oct 2007 to 31 Dec 2010
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The 'key terms disclosure' document must, amongst other things, make clear:
(a) the amount being received or the credit limit being offered, its maturity and repayment schedules;
(b) the nominal amount of the cost of credit to be provided to the customer;
(c) whether this cost of credit is fixed or can go up and / or down, and under what circumstances;
(d) the basis on which the cost of credit is calculated and when capital repayments are taken into account in the calculation, together with an illustration of the calculation method;
(e) a breakdown of all other costs not included in (b), (c) and (d) above and associated with the credit, such as arrangement fees, documentation fees, late payment fees (if permitted by the Shari'a Board, and obligatory payment protection insurance costs;
(f) the full costs associated with top-ups of installment facilities or early repayments of amounts due (in full or in part if permitted by the Shari'a Board), including the treatment of remaining profit and the payment of premium for insurance; and
(g) the Profit Rate, as defined in Paragraph CM-7.5.5 below.
October 07