IPOH: The Consumer Credit Act will be gazetted at the end of the year, says Deputy Finance Minister Lim Hui Ying.
The Consumer Credit Bill was passed by the Dewan Negara after the third reading by Lim on Thursday (Sept 4).
The new law will be the primary Act adopted by all regulatory and supervisory authorities to monitor consumer credit activities under the relevant agencies.
“The new law is a manifestation of influential reforms to strengthen consumer protection and reorganise the country's credit landscape," Lim said in a statement on Friday (Sept 5).
"The Madani government does not underestimate the principles of fairness and inclusiveness in all aspects of governance to ensure that the people's welfare is guaranteed.
"It is also hoped that confidence in institutions can be restored, as envisioned in the Madani Economic Framework,” she added.
Lim said the Bill is meant to strengthen the regulation of the consumer credit industry and protect the people from unfair, non-transparent and oppressive credit practices.
"Currently, six consumer credit services are not regulated by any party, including buy-now-pay-later (BNPL) schemes, factoring, leasing, debt collection services and debt management.
"(Under) the Act, these services will be regulated by the Consumer Credit Commission (CCC) under Phase One when the law is enforced," she said, adding that it would also strengthen trust in the country's financial system.
"The CCC has four main functions, namely advising the Finance Minister on all matters relating to consumer credit; advising the government in the formation of national policies relating to consumer credit; promoting fair, professional and responsible conduct by all credit providers and credit service providers; and promoting the development of an efficient and transparent consumer credit industry," she added.
