PUTRAJAYA: The Consumer Credit Act 2025 (Act 873), gazetted on Dec 31, came into force on Sunday (March 1) as part of the government’s efforts to strengthen consumer credit protection, says the Finance Ministry.
It said in a statement on Monday (March 2) that in line with the Act's enforcement, the government will set up the Consumer Credit Commission (CCC) to oversee the industry more comprehensively.
It quoted Finance Minister II Datuk Seri Amir Hamzah Azizan as saying that the move is a significant step towards building a transparent and responsible credit system.
"This effort is an important step by the government to build a transparent and accountable credit system.
"With the enforcement of the Consumer Credit Act 2025 and the establishment of the CCC, the government is strengthening consumer protection against unfair or unethical credit practices," he said.
The ministry also said the Act aims to regulate the conduct of the consumer credit industry in a more holistic, integrated and effective manner.
Key components include developing a comprehensive and consistent regulatory framework, introducing Authorisation Standards and Conduct Standards, and creating an integrated information and supervisory framework to enhance monitoring, oversight and enforcement.
Under the Act, credit providers such as Buy Now Pay Later (BNPL) scheme companies, leasing firms and factoring companies will be required to obtain a licence from the CCC.
Credit service providers, including debt collection agencies, impaired loan or financing acquisition companies, as well as debt counselling and debt management agencies will be required to register with the commission.
The licensing and registration requirements will take effect on June 1. A six-month transitional period will be granted to industry players to apply for licences or registration under the Act.
The ministry said the move aims to strengthen consumer protection, improve governance standards within the credit industry and ensure credit practices are more transparent, fair, responsible and professional.
