Arab Finance: The Financial Regulatory Authority (FRA) has initiated criminal proceedings against an unnamed consumer finance company and barred it from signing new financing contracts for one month over its role in an international school’s unauthorized use of parents’ data to obtain loans, as per a statement.

The FRA also suspended the company’s financing products for school fees and club memberships and prohibited it from issuing new financing under these products until the regulator completes a review.

The measures followed an intensive four-day investigation launched after the FRA detected reports of the incident and before it received formal complaints concerning the credit ratings of some affected parents.

Technical teams from the FRA’s Non-Banking Finance, Complaints, Compliance, and Anti-Money Laundering departments conducted field inspections, detailed examinations, and direct investigations with the parties involved. In coordination with the relevant authorities, the FRA removed the negative consequences for the affected parents and canceled their financial and credit obligations.

Following the investigation, the relevant committee reviewed the violations and determined the responsibilities of the parties involved under Consumer Finance Law No. 18 of 2020 and the regulations governing the activity.

Based on the committee’s recommendations, FRA Chairman Islam Azzam ordered the company’s general assembly to convene in the presence of an FRA representative to examine the alleged violations and take the necessary steps to strengthen its internal controls.

The FRA also revoked the consumer finance license held by the company’s CEO. It imposed disciplinary measures against several key employees over violations affecting customer rights, in accordance with FRA Board of Directors Resolution No. 45 of 2026.