Measuring Compensation from Credit Reporting Damage: A Comparison of Islamic, Saudi, and American Law in Light of Credit Information Reporting Acts

Abstract

Although there was a simple way to practice credit reporting in the past, in its organized and developed form credit reporting is considered new to international society in general. The first act to regulate credit reporting was established in the last quarter of the twentieth century in the U.S.A. The novelty is even more evident in Saudi laws. The first act in Saudi Arabia was declared in 2008. In Saudi Arabia, credit reporting is associated with many legal issues that must be resolved with reference to both Shariah and Saudi Arabia law. Consequently, legal and Shariah solutions should be provided. This dissertation is a comprehensive study of credit reporting damage and remedies. It tackles issues related to definitions, history, and mechanisms of credit reporting in one section. In another section, this dissertation examines acts or failures to act as the basis for liability. These acts or failures to act may be performed by credit reporting agencies, users, or other entities or persons. This examination is presented in light of the Fair Credit Reporting Act and the Credit Information Act and weighed against Islamic law to examine validity in Islamic law as the predominant law in Saudi Arabia. This dissertation also seeks to find weakness and strength in both laws and suggest improvements. Proving the breaches is an essential part to recovering damages. Methods and standards of proof in both legal systems have similarities and differences. Some types of damages inflicted upon consumers are unique to credit reporting, while other types of damages are similar to other legal theories. The most challenging issue is the measure of remedies in the credit reporting context. The types of damages shared by other legal theories share the same measurements of remedies. Nevertheless, damages unique to credit reporting have their own remedial measurements. This dissertation hopefully adds to legal academia, helps the judiciary in Saudi Arabia in interpreting the Credit Information Act, and helps improve deficiencies in the current legal framework of U.S and Saudi legal systems.