Consumer Credit Act 2025 To Be Gazetted By Year-end

PUTRAJAYA, Sept 5 (Bernama) -- The Consumer Credit Act 2025 (RUUKP) is expected to be gazetted by the end of this year, providing a more comprehensive protection for consumers through the regulation of excessive charges and the enforcement of ethical debt collection practices.

At the same time, it would establish a consistent regulatory framework for players in the credit industry, thereby strengthening confidence in the country’s financial system, the Ministry of Finance (MoF) said in a statement today.

The RUUKP was passed in the Dewan Negara yesterday, enhancing the regulation of the consumer credit industry and safeguarding the public against unfair, non-transparent and oppressive practices.

“Currently, six consumer credit services remain unregulated, including buy-now, pay-later (BNPL) schemes, factoring, leasing, debt collection services and debt management.

“With the passing of RUUKP, all these services will come under the supervision of the Consumer Credit Commission (SKP) in Phase 1, once the Act comes into force,” the ministry said.

To be established under the Act, the SKP is an independent body that will oversee credit providers previously left unregulated.

It will have four main functions: advising the Finance Minister on consumer credit matters, guiding the government in national policy formulation, promoting fair and responsible conduct among credit providers, and supporting the growth of an efficient and transparent consumer credit industry

It will carry out four main functions: advising the Finance Minister on all matters related to consumer credit; advising the government on national policy formulation; promoting fair, professional and responsible conduct among credit providers; and fostering the growth of an efficient and transparent consumer credit industry.

Deputy Finance Minister Lim Hui Ying said the RUUKP will serve as the principal legislation to be adopted by all Regulatory and Supervisory Authorities (RSAs) in monitoring consumer credit activities under their respective agencies.

“RUUKP represents a significant reform to strengthen consumer protection and reshape the country’s credit landscape.

The MADANI government does not underestimate the principles of justice and inclusiveness in all aspects of governance to ensure that the people's welfare is guaranteed. Confidence in institutions is also expected to be restored, as envisioned under the MADANI Economy framework,” she added.

-- BERNAMA