KUALA LUMPUR – With the formulation of the Consumer Credit Act (CCA) framework, the government is requesting feedback on the framework to help enhance security for credit consumers in Malaysia.
According to a recent joint statement by Bank Negara Malaysia (BNM) and the Securities Commission (SC) Malaysia, the CCA aims to offer a comprehensive framework for regulating the conduct of organisations engaged in the business of providing credit or credit services to such consumers.
It added that the immediate focus will be on entities that are not presently subjected to direct regulation by any authorities including but are not limited to “Buy Now Pay Later” providers, leasing and factoring companies, impaired loan buyers and debt collection agencies.
The statement said that the CCA framework will provide a pathway for the establishment of the Consumer Credit Oversight Board (CCOB) which will be an independent authority that will oversee the credit providers and credit services providers.
There will be two phases to the consultation with public consultation being Part 1. In this phase, an overall overview of Malaysia’s current consumer credit industry landscape will be presented.
It includes the challenges faced in the industry and proposed reforms to better safeguard individuals and small businesses in their transactions with the credit providers and credit services providers.
Furthermore, the statement notes that the reforms would be implemented in phases under a proposed multi-year programme to establish consistent protection standards for credit consumers as well as support the orderly development of Malaysia’s credit industry.
Aside from public feedback on the regulatory and authorisation of the CCA framework, the CCOB is also looking for feedback on the legislation aspects in order to promote high levels of professionalism and fair behaviour among credit providers and credit service providers.
After which will be Part 2 of the consultation paper which is expected to be released in the fourth quarter of the year. It would provide additional information on the authorisation, governance, and conduct requirements that the credit providers and credit service providers have to meet.
Visit the CCOB website at www.ccob.my to download the public consultation paper and to find out more information about the CCA and CCOB.
Members of the public who are keen to submit their feedback should do so by Sept 5, 2022 via email at [email protected]
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