Public Invited To Give Feedback On The Proposed Consumer Credit Act
The Ministry of Finance (MoF), Bank Negara Malaysia (BNM) and the Securities Commission (SC) are working on developing a legal framework to regulate all consumer credit activities, including the “Buy Now Pay Later” (BNPL) scheme.
All the three agencies above are part of Consumer Credit Oversight Board (CCOB) task force working to ensure that credit activities that are currently not directly regulated by other laws will be covered by the proposed Consumer Credit Act.
This effort is in collaboration with the Ministry of Domestic Trade and Consumer Affairs (KPDNHEP), the Ministry of Housing and Local Government (KPKT), the Ministry of Entrepreneur and Cooperatives Development (KUSKOP) and Malaysia Co-operative Societies Commission (SKM).
The CCOB task force is now in the public consultation stage. The consultation process is separated into two parts. Part 1, which is taking place now aims to give the pubic an overview of what is happening in the consumer credit industry in Malaysia, its challenges and the reforms needed to support the orderly development of the credit industry in Malaysia.
The press statement issued by the task force today also highlighted that part 2 of the consultation process which is scheduled to be rolled out in the fourth quarter of this year will provide further details on authorisation, governance, and conduct requirements that will be applied to credit providers and credit service providers.
The task force is now seeking feedback on part 1, the proposed regulatory and authorisation framework. The public consultation paper is available for download from CCOB’s website[www.ccob.my]. This website serves as a one-stop reference point for all stakeholders seeking information and updates related to CCA and CCOB.
Members of the public are invited to provide feedback and comments on this to the task for by emailing to CCAConsultation@bnm.gov.my by September 5, 2022.