What is the Consumer Credit Bill? The upcoming law aimed at regulating BNPL and credit service providers

KUALA LUMPUR, March 24 — On March 4, the federal government introduced the long-awaited Consumer Credit Bill (CCB) in Parliament, aiming to strengthen regulatory oversight and enhance consumer protection within the expanding non-bank credit sector.

A legislative effort in progress since 2020, the Bill seeks to establish a comprehensive regulatory framework for credit providers, particularly those offering "buy now, pay later" (BNPL) schemes, ensuring they comply with minimum standards of fair treatment and ethical conduct.

Currently, consumer credit activities fall under multiple laws and ministries, each providing varying degrees of protection. This fragmented system has led to confusion among borrowers regarding which authorities are responsible for resolving their concerns.

While the Bill awaits further parliamentary debate, Malay Mail highlights its key provisions.

Consumer Credit Commission (CCC)

Part II of the proposed Act outlines the formation, functions, and powers of the Consumer Credit Commission (CCC).

As per Clauses 9 and 11, the CCC board will comprise up to nine members appointed for a three-year term, including representatives from the Finance Ministry, Bank Negara Malaysia (BNM), and the Securities Commission Malaysia (SC).

The CCC's primary roles will include regulating unmonitored credit and credit service providers, advising the federal government and Finance Minister on consumer credit policies, and promoting responsible business conduct while fostering sustainable growth in the consumer credit industry.

Ultimately, the CCC will oversee non-bank credit providers and service providers while safeguarding consumers against unfair and deceptive practices.