Credit Card Responsibility Agreement Template for Saudi Arabia

The Credit Card Responsibility Agreement is a crucial document used when establishing a credit card relationship between an Islamic financial institution and a customer in Saudi Arabia. It serves as the primary legal framework defining the terms of credit card issuance, usage, and management while ensuring compliance with both Saudi Central Bank (SAMA) regulations and Islamic banking principles. The agreement is specifically designed to address the unique requirements of Shariah-compliant financial products, including alternative fee structures that avoid conventional interest charges. This document becomes necessary whenever a new credit card account is opened, providing comprehensive coverage of cardholder obligations, bank responsibilities, security measures, and dispute resolution procedures. It includes specific provisions for data protection, digital services, and international usage while maintaining alignment with Saudi Arabian banking regulations and consumer protection laws.

1. Parties: Identification of the card issuer (bank) and the cardholder, including full legal names and contact details

2. Background: Brief context explaining the purpose of the agreement and the credit card service being offered

3. Definitions: Clear definitions of key terms used throughout the agreement, including 'Credit Card', 'Credit Limit', 'Statement Date', 'Service Fees', etc.

4. Card Issuance and Usage: Terms regarding card issuance, activation, and permitted usage

5. Shariah Compliance Statement: Declaration of the agreement's compliance with Islamic banking principles

6. Fees and Charges: Detailed breakdown of all applicable fees, charges, and their calculation methods in accordance with Shariah principles

7. Credit Limits and Payment Terms: Specifications about credit limits, payment obligations, and payment methods

8. Cardholder Obligations: Detailed responsibilities of the cardholder including security, authorized usage, and reporting requirements

9. Bank's Rights and Obligations: The bank's responsibilities and rights regarding card services, suspension, and termination

10. Security and Loss Prevention: Procedures for card security, loss reporting, and liability for unauthorized transactions

11. Data Protection and Confidentiality: Terms regarding the handling and protection of cardholder personal data

12. Term and Termination: Duration of the agreement and conditions for termination by either party

13. Governing Law and Jurisdiction: Specification of Saudi law as governing law and jurisdiction for disputes