Consumer Credit Act to Regulate Non-Bank Credit Providers Including BNPL Companies -- BNM
KUALA LUMPUR, Oct 19 (Bernama) -- The Consumer Credit Act (CCA), to be tabled in the next parliamentary sitting, will address overlaps in responsibilities between regulatory authorities and reduce coverage gaps in the supervision of consumer credit providers, Bank Negara Malaysia (BNM) said.
With the passing of the CCA that was announced during the Budget 2025 tabling yesterday, the Consumer Credit Commission (CCC) will be established as the new authority regulating non-bank credit providers and credit service providers in Malaysia, the central bank said.
“The CCC will regulate and supervise a range of entities currently not subject to any regulatory authority in Malaysia.
“This includes ‘Buy Now Pay Later' (BNPL) companies, non-bank factoring and leasing companies, impaired loan buyers, debt collection agencies, and debt counselling and management agencies,” BNM said in a statement released on Friday.
At present, the Consumer Credit Oversight Board Task Force (CCOB) – led by the Finance Ministry, BNM and Securities Commission Malaysia – is tasked to drive the finalisation of the CCA together with relevant ministries and agencies.
Other BNM initiatives under the budget include RM3.8 billion to fund micro, small and medium enterprises in carrying out digitalisation and automation, embracing sustainable and low carbon practices, and increasing agrofood production.
In addition, the financing limit for Micro Finance Scheme by financial institutions has been doubled to RM100,000.
Grants worth RM20 million are also allocated for iTEKAD’s seed capital component and subsidising microentrepreneurs’ takaful protection.
Moreover, there are the RM30 Perlindungan Tenang Voucher for Sumbangan Tunai Rahmah recipients and a RM100 million matching fund to spur Islamic finance innovation.
-- BERNAMA