الهيئة العامة للرقابة المالية

Dr. Mohamed Farid – FRA Chairman

• A new specialized registry: Ensuring companies’ compliance and safeguarding customer data.
• FRA registration is mandatory; NBFIs are prohibited from contracting non-registered companies.
• Required issued and paid-in capital must not be less than EGP 10 million, with equity of no less than EGP 20 million.
• Debt Collection Companies must maintain absolute confidentiality of all customer data.
• All contracts between financing entities and collection firms require prior FRA approval.
• Financiers must provide customers with collection company details and identity verification methods.
• Debt Collection Companies may only collect dues; practicing any financing activities is strictly forbidden.
• A 6-month grace period is granted to NBFIs to reconcile their positions.
• Cash payments are restricted to legal limits and certified receipts; funds must be remitted within five business days.
• Mandatory disclosure of collector details ensures consumer protection.

Financial Regulatory Authority (FRA), chaired by Dr. Mohamed Farid, has issued – for the first time – a new resolution regulating debt collection companies in non-banking finance. This decisive step reinforces consumer protection across the sector.

Resolution No. 278 of 2025 established several controls, most notably the establishment of a registry for companies and entities wishing to collect financial dues arising from financing granted by NBFIs. It further prohibited dealing with any unregistered collection entities.

Dr. Mohamed Farid stated that the new resolution reflects FRA’s commitment to regulate debt collection and establishing a clear legal and professional framework. This ensures the protection of customer rights while enhancing discipline and governance within the NBFI sector.

Dr. Farid explained that the specialized registry is a pivotal step to ensure dealings are restricted to qualified, supervised entities, preventing unregulated practices that could harm consumers or market integrity.

 He emphasized that requiring financing companies to notify customers of collection details is essential for building trust in the financial ecosystem.

The controls specify that the registry must include, at a minimum: the registered company’s name, legal form, purpose, headquarters address, the name of the Managing Director or executive manager, and contact details. NBFIs are strictly prohibited from dealing with any unregistered companies.

The resolution introduces rigorous eligibility criteria for registration, stipulating that applicants must be incorporated as commercial companies with a corporate mandate specifically centered on debt collection services. From a financial solvency standpoint, these companies are required to maintain a minimum issued and paid-in capital of EGP 10 million (or its foreign currency equivalent) and shareholders’ equity of no less than EGP 20 million.

Companies failing the equity requirement may qualify by proving three years of prior operation, provided their equity is at least equal to their paid-in capital.

FRA mandates that executive management maintain a good reputation and a clean track record. Both executives and collection personnel are required to successfully complete specialized training programs as prescribed by the Authority.

 Additionally, entities and managers must be free of criminal convictions or bankruptcy for three years prior to applying. A EGP 25,000 fee applies to all registration and renewal requests.

The registration process requires applicants to submit a formal request to FRA, evidenced by key documentation. Submissions must include the company’s updated Articles of Association, the most recent audited financial statements and auditor’s report, and a portfolio of prior collection service contracts. The Authority reserves the right to request any additional documentation necessary for its final decision. The Authority will study and decide on applications within 30 days of receiving a complete file.

 The registration is valid for 3 years, renewable for similar periods, provided a renewal request is submitted 3 months before expiration and all requirements continue to be met.

Registered companies must adhere to principles of integrity and exercise “due care.” They are prohibited from any practices that harm financing entities or customers. Along with the commitment to obtain prior approval from the Authority for contracts intended to be executed with non-banking financing companies or entities. They must only perform collection duties and avoid any financing activities.

This resolution prohibits debt collection companies from receiving payments through any means that results in funds being credited to their own corporate accounts. Instead, all dues must be collected via point-of-sale (POS) terminals provided by the contracting entity, the entity’s own electronic payment methods, or through checks issued by customers directly to the contracting financier.

Cash transactions are strictly limited to the limits set by the Law Regulating the Use of Non-Cash Payment Methods and must be documented using certified receipts issued to collectors as personal custody; the original receipt is provided to the customer, while a signed copy is retained by the company. All collected funds must then be remitted to the financier within a maximum of five working days.

Furthermore, the resolution obligates collection companies to maintain absolute confidentiality of all information and prohibits its disclosure, except in cases specified by law or upon request by the Authority (FRA). These companies are also required to submit semi-annual reports to FRA detailing their operations, contracted partners, customer lists and collection methods.

The resolution mandates that Non-Banking Financial Institutions (NBFIs), when engaging with registered  debt collection company, must proactively notify customers of the authorized company’s credentials. This includes clear methods for verifying collector identities, providing relevant contact information, and explicitly advising customers on which sensitive data must remain confidential. Furthermore, NBFIs must strictly limit the scope of these agencies to debt collection activities only. They are also held accountable for safeguarding their own legal rights, investigating customer grievances against collectors and implementing swift corrective actions. Moreover, NBFIs must submit semi-annual reports to the Authority. These reports must detail all contracted collection partners, total amounts recovered, and relevant customer demographics and geographic data. Additionally, any violations committed by collection companies during their duties must be reported to FRA immediately.

FRA Chairman holds the authority to impose administrative measures on companies that violate these provisions. Penalties range from formal warnings and temporary suspensions (up to one year) to de-registration. In cases of de-registration, re-entry into the registry is barred for a period of six months to five years, or escalate to permanent de-registration.

All non-banking financial entities are required to reconcile their existing operations and achieve full compliance with these controls within six months of the effective date.