Proposed New Legislation to Provide More Protection in Consumer Credit

14 June 2019

It has been reported in the local media1 that the Governor of Bank Negara Malaysia, Datuk Nor Shamsiah Mohd Yunos, has said that Bank Negara is working with the Ministry of Domestic Trade and Consumer Affairs, the Ministry of Housing and Local Government and the Ministry of Entrepreneur Development to introduce a new legislation, the Consumer Credit Act.

The Governor also said that the discussions are at an advanced stage and hopes that the Bill will be tabled in Parliament in 2020.

According to the news report, the objectives of the proposed Act include the following:

Promote a healthy consumer credit market across the board;
Protect consumers from financial hardships by taking on obligations that they cannot meet;
Create value from borrowings taken on by borrowers; and
Ensure that consumers are given protection and fair treatment regardless of the sources of funding.

1 For further details see ‘More Protection for Malaysian Consumers’, StarBiz, 14 June 2019.

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Proposed New Legislation to Provide More Protection in Consumer Credit