Latest news with #ConsumerCreditCommission
New Straits Times
18 hours ago
- Business
- New Straits Times
New law will regulate BNPL, instant loans, says ministry
KUALA LUMPUR: The new consumer credit law will protect Malaysians from financial risks stemming from uncontrolled credit use and unethical lending practices, said the Finance Ministry. The ministry said the legislation seeks to address challenges posed by the growing digital finance landscape, including hidden risks linked to instant loans and "buy now, pay later" (BNPL) schemes. On Monday, the Dewan Rakyat passed the Credit Consumer Bill 2025 after it was tabled for its second and third readings by Deputy Finance Minister Lim Hui Ying. The bill was debated by 23 lawmakers. "The bill will serve as the primary law regulating all credit-related businesses and services," said the ministry. "It will ensure fair conduct by credit providers, mandate transparency in charges and introduce professional guidelines for debt collection and dispute resolution." It added that consumers facing financial hardship would also have access to assistance and advice through authorised and registered channels. "For the first time, a Consumer Credit Commission will be established to regulate service providers previously operating without direct oversight, including leasing companies, factoring firms, debt collection agencies, and non-bank digital financing providers. "The commission will also streamline regulatory functions currently spread across multiple ministries and agencies under one roof, ensuring more uniform and efficient supervision of the credit industry." The ministry said the bill reflected the government's long-term commitment to creating a safer and more inclusive consumer credit ecosystem. Lim had said on Monday that the bill, once gazetted, would introduce integrated regulations in phases. These phases would take into account the industry's level of preparedness and the Consumer Credit Commission's growing capacity, which will be gradually strengthened. She added that the commission would also assume regulatory responsibilities in stages, starting with the currently unregulated credit providers, with full centralisation of oversight expected by 2031.
New Straits Times
2 days ago
- Business
- New Straits Times
Consumer Credit Bill to tackle hidden risks in BNPL, instant loans
KUALA LUMPUR: The introduction of the Consumer Credit Bill 2025 will protect Malaysians from financial risks stemming from uncontrolled credit use and unethical lending practices. The Finance Ministry said the comprehensive legislation aims to address challenges posed by the growing digital finance landscape, including hidden risks linked to instant loans and Buy Now Pay Later (BNPL) schemes. "The bill will serve as the primary law regulating all credit-related businesses and services. It will ensure fair conduct by credit providers, mandate transparency in charges, and introduce professional guidelines for debt collection and dispute resolution," it said in a statement. The ministry also said consumers facing financial hardship will also have access to assistance and advice through authorised and registered channels. "For the first time, a Consumer Credit Commission will be established to regulate service providers previously operating without direct oversight, including leasing companies, factoring firms, debt collection agencies and non-bank digital financing providers. "The commission will also streamline regulatory functions currently spread across multiple ministries and agencies under one roof, ensuring more uniform and efficient supervision of the credit industry," it added. The ministry said the bill reflects the government's long-term commitment to creating a safer and more inclusive consumer credit ecosystem, with phased implementation expected to significantly impact the country's financial landscape. Yesterday, the Dewan Rakyat passed the bill after it was tabled for its second and third readings by Deputy Finance Minister Lim Hui Ying today, and was debated by 23 lawmakers. Once gazetted, Lim said, the bill will introduce integrated regulations in phases, taking into consideration the industry's level of preparedness and the growing capacity of the Consumer Credit Commission, which will be gradually strengthened throughout each phase. She added that the commission will also assume regulatory responsibilities in stages, starting with currently unregulated credit providers, with full centralisation of oversight expected by 2031.
The Sun
3 days ago
- Business
- The Sun
New BNPL regulations in Malaysia to prevent debt traps
KUALA LUMPUR: The Consumer Credit Commission (CCC) is set to enforce a new regulatory framework for Buy Now, Pay Later (BNPL) schemes to safeguard consumers from excessive debt and potential bankruptcy. Deputy Finance Minister Lim Hui Ying announced the measures during the second reading of the Consumer Credit Bill 2025 in the Dewan Rakyat. Under the upcoming rules, BNPL providers must conduct debt affordability assessments before approving loans. 'This assessment ensures borrowers can repay without severe financial strain,' Lim said. The CCC will monitor compliance, ensuring companies adhere to these checks. Currently, most BNPL loans remain below bankruptcy thresholds. Transparency is another key focus. Providers must clearly disclose fees and credit terms before offering services. 'Consumers deserve full awareness of their financial commitments,' Lim added. The government also plans to enhance financial literacy to help users make informed decisions. Malaysia's BNPL market is growing fast, with 16 active providers. SPay Later, Atome, and GrabPay Later dominate, holding over 95 per cent of the market. The new regulations aim to balance industry growth with consumer protection. – Bernama
New Straits Times
3 days ago
- Business
- New Straits Times
Dewan Rakyat passes Consumer Credit Bill to protect credit consumers
KUALA LUMPUR: The Consumer Credit Bill 2025, aimed at safeguarding the interests of credit consumers in the country, has been passed by the Dewan Rakyat. The bill, which was tabled for its second and third readings by Deputy Finance Minister Lim Hui Ying today, was debated by 23 lawmakers. Lim said that once gazetted, the bill will introduce integrated regulations in phases, taking into consideration the industry's level of preparedness and the growing capacity of the Consumer Credit Commission, which will be gradually strengthened throughout each phase. She added that the commission will also assume regulatory responsibilities in stages, starting with currently unregulated credit providers, with full centralisation of oversight expected by 2031. "In Phase 1, the commission will regulate all credit businesses and credit service providers not currently under the purview of any authority. "However, Syariah-compliant financing facilities and Shariah-compliant pawnbroking activities will continue to be regulated by the Housing and Local Government Ministry (KPKT). "This will be followed by Phase 2, which involves the transfer of regulatory responsibilities for certain credit activities, such as moneylending and pawnbroking currently under KPKT, as well as hire purchase and credit sales currently under the Domestic Trade and Cost of Living Ministry. This phase is expected to commence in 2028," she said. Phase 3 is expected to commence in 2031, with the aim of centralising behavioural regulation across all financial market activities in Malaysia, subject to a comprehensive review by the government. "This phased approach is designed to ensure that the regulatory transformation of the consumer credit industry, and the transition process itself, proceeds in an orderly manner to minimise implementation risks. "At the same time, it enables the commission to build its capacity and capabilities to effectively take on greater responsibilities," she said. Earlier, Lim said the commission will be established as a regulatory body under the Finance Ministry and will regulate business sectors currently unregulated by any authority, through a licensing and registration framework to be implemented under the act.
Barnama
3 days ago
- Business
- Barnama
Consumer Credit Commission To Implement Comprehensive Regulatory Framework For BNPL Schemes
BUSINESS KUALA LUMPUR, July 21 (Bernama) -- The Consumer Credit Commission (CCC) will implement a comprehensive and sustainable regulatory framework for the 'buy now, pay later' (BNPL) scheme to ensure the public does not fall into debt traps or face a rise in bankruptcy cases. Deputy Finance Minister Lim Hui Ying said that under the framework, BNPL companies will be required to conduct debt affordability assessments before approving credit facilities for consumers. 'This assessment is crucial to ensure that credit users can repay the borrowed amount without facing serious financial stress or falling into a debt trap. 'The CCC will enforce compliance within the BNPL industry regarding the requirement to carry out these affordability assessments. Currently, most BNPL users take out small loans that do not exceed the legal threshold for bankruptcy proceedings,' she said when tabling the Consumer Credit Bill 2025 for the second reading in the Dewan Rakyat today. Lim said that the CCC will also require BNPL providers to transparently disclose all information related to credit terms, including fees, before any credit facility is offered. 'The government also emphasises the importance of financial literacy so that the public is better equipped to manage their finances and understand the risks of excessive BNPL usage. 'This approach aims to protect consumers from uncontrollable debt burdens and promote responsible borrowing practices,' she said, adding that the BNPL market in Malaysia is expanding rapidly. Currently, 16 companies offer BNPL schemes, with SPay Later, Atome, and GrabPay Later being the three largest providers, collectively holding over 95 per cent of market share. -- BERNAMA
