‘Buy now, pay later’ schemes to be regulated, says Yamani


A NEW law will be introduced this year to regulate and monitor “buy now, pay later” (BNPL) schemes, it was announced.

Deputy Finance Minister II Yamani Hafez Musa said the Consumer Credit Act would strengthen regulatory arrangements for all consumer credit activities, including providers of BNPL schemes.

The Finance Ministry, Bank Negara and the Securities Commission were spearheading the effort with the relevant ministries and agencies to formulate a comprehensive legal framework, he said.

“With its (the Act’s) enactment, all creditors including BNPL providers will be subject to appropriate regulations.

“These regulations are not only related to management but also risk control and consumer protection.

“It will also include syariah compliance rules in conducting BNPL activities,” Yamani said in reply to Lukanisman Awang Sauni (GPS-Sibuti) in the Dewan Rakyat yesterday.

The MP had asked the Finance Minister whether the government was closely monitoring BNPL schemes on online shopping platforms and whether this payment method would pose a debt burden on consumers in the future.

Yamani said there was a need for consumer education on BNPL schemes and their terms and conditions, especially on hidden fees and charges and also the impact on consumers’ credit ratings.

“Even though they state that the BNPL card has 0% interest, there are still various charges like processing and administration fees, and late charges if late payment is made,” he added.

Yamani also cautioned Malaysians that their credit ratings could be affected if they failed to settle their instalments as certain BNPL operators could refer it to credit reporting agencies.

“Instalment payments must also be made in full and on time as agreed to avoid penalty charges,” he said.

He advised the public to constantly monitor all BNPL commitments they have made to ensure that their personal debt remained manageable.

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law , consumer , credit , Dewan Rakyat , Parliament

   

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