KUALA LUMPUR: The Dewan Negara has passed the Consumer Credit Bill 2025 following a debate involving eight senators.
Deputy Finance Minister Lim Hui Ying tabled the bill for its second and third readings.
She stated that the bill establishes a regulatory framework for the credit industry and creates a Consumer Credit Commission for stronger consumer protection.
Lim explained that all Buy Now Pay Later operators must obtain a licence from the commission to operate in Malaysia.
“BNPL companies must also submit periodic reports to the CCC, and unlicensed entities will be subject to enforcement action by the commission,” she said during the winding-up of the bill’s debate today.
BNPL providers will be required to conduct creditworthiness assessments before offering financing services.
These assessments must evaluate a user’s income and financial commitments to ensure repayment capability.
The commission will supervise currently unregulated credit providers and service providers to enhance industry professionalism.
“For instance, in detecting misconduct related to advertising — as well as loan agreement terms — the CCC may use methods such as complaint analysis via its complaints system, mystery shopping, and web scraping,” Lim added.
The commission can issue warnings and impose monetary penalties of up to 500,000 ringgit per violation.
It also holds the power to suspend or revoke licences of non-compliant credit providers.
The CCC will issue mandatory data protection standards that all industry participants must follow.
Enforcement action can be taken against any mishandling of credit user data according to the new legislation. – Bernama