KUALA LUMPUR: The Consumer Credit Bill 2025, passed in the Dewan Negara yesterday, is set to serve as a master act for all regulatory and supervisory authorities (RSAs) overseeing consumer credit activities within their jurisdictions.
In a statement, the Finance Ministry said the bill, which cleared its third reading with Deputy Finance Minister Lim Hui Ying, would strengthen regulatory oversight of the consumer credit industry and protect the public from unfair, opaque and predatory credit practices.
Currently, six types of consumer credit services remain unregulated, including Buy Now Pay Later (BNPL) schemes, factoring, leasing, debt collection and debt management.
All will fall under the purview of the newly established Consumer Credit Commission (CCC) in Phase 1 once the act comes into force.
“The Consumer Credit Bill represents a significant reform aimed at strengthening consumer protection and restructuring the national credit landscape.
“The Madani government does not take lightly the principles of justice and inclusivity in all aspects of governance, ensuring the well-being of the people remains safeguarded.
“It is also hoped that public confidence in institutions can be restored, as envisioned under the Madani economy framework,” Lim said.
The ministry said the bill is expected to be gazetted by year-end, offering comprehensive consumer protection by regulating excessive charges and enforcing ethical debt collection practices.
The legislation will also provide a consistent regulatory framework for industry players, bolstering trust in the national financial system.
The CCC will function as an independent body overseeing previously unregulated credit providers.
It will advise the finance minister on consumer credit matters; support the government in formulating national consumer credit policies; promote fair, professional and responsible conduct among credit providers and service providers; and encourage the development of an efficient, transparent consumer credit industry.
The bill was passed in the Dewan Rakyat on July 21.
