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The Board of Directors of the Financial Regulatory Authority (FRA), chaired by Dr. Islam Azzam, has issued a resolution granting a six-month extension to entities operating in the non-banking financial sector to comply with new debt collection regulations. Once the deadline expires, these institutions will be strictly prohibited from dealing with any debt collection agencies not officially listed in the FRA’s newly established registry.

Regulatory Timeline and Market Response

Under the newly issued Resolution No. 139 of 2026, the extended grace period for non-banking financial institutions (NBFIs) will conclude on January 22, 2027. This extension is designed to accommodate the operational realities of collection firms, providing them with adequate time to fulfill the registry's requirements, thereby enhancing market oversight and curbing unregulated debt collection practices.

To date, the FRA has officially approved the registration of two companies in accordance with Resolution No. 278 of 2025. The Authority is currently processing and reviewing applications from more than 30 additional collection firms seeking official registration.

Strict Registration Requirements

The regulatory framework mandates comprehensive disclosure from collection firms, including their legal structure, corporate purpose, headquarters address, executive details, and official contact channels. Applications must be accompanied by the company’s articles of association, certified financial statements, and track record of previous collection contracts. The FRA commits to processing complete applications within a maximum of 30 days.

To qualify for the registry, collection agencies must meet the following financial and legal criteria:

Corporate Structure: Must be established as a commercial company with debt collection explicitly listed as an operational purpose.

Capital Base: Minimum issued and paid-up capital of EGP 10 million (or its foreign currency equivalent).

Equity Minimum: Total equity must not fall below EGP 20 million.

Operational Exception: If a company does not meet the EGP 20 million equity threshold, it must prove at least three years of active market operation prior to applying, provided its total equity never falls below its paid-up capital.

Consumer Protection and Governance

In a strong push to protect consumer rights and tighten market governance, the resolution mandates that NBFIs proactively inform their clients about the specific debt collection agencies they contract. Financial institutions must provide clients with clear mechanisms to verify the identity of debt collectors and official communication channels, while actively tracking and resolving any complaints filed against these agencies.

Furthermore, the resolution grants the FRA Chairman full authority to impose administrative penalties on registered companies that violate operational guidelines. These disciplinary measures range from official warnings and temporary suspensions to permanent delisting from the registry, ensuring strict compliance and the safeguarding of consumer interests.