Finance Ministry: Consumer Credit Act 2025 to be gazetted before year-end

PUTRAJAYA, Sept 5 — The Consumer Credit Act 2025 (RUUKP) is expected to be gazetted by the end of this year, aiming to enhance consumer protection by regulating excessive charges and ensuring ethical debt collection practices.

According to the Ministry of Finance (MoF), the legislation will also introduce a consistent regulatory framework for credit industry players, thereby strengthening confidence in Malaysia’s financial system.

The Act, passed in the Dewan Negara yesterday, expands oversight of the consumer credit sector to protect the public from unfair, non-transparent and oppressive practices.

“Currently, six types of consumer credit services remain unregulated, including buy-now, pay-later (BNPL), factoring, leasing, debt collection, and debt management. With the implementation of RUUKP, these services will fall under the supervision of the Consumer Credit Commission (SKP) in Phase 1,” the ministry said.

The SKP, to be established under the Act, will function as an independent regulator, with responsibilities that include advising the finance minister, guiding national policy formulation, promoting responsible practices among credit providers, and fostering a transparent and efficient credit industry.

Deputy Finance Minister Lim Hui Ying said the RUUKP will serve as the central legislation for all Regulatory and Supervisory Authorities (RSAs) in monitoring consumer credit activities.

She added that the Act represents a major reform to improve consumer protection and reshape the country’s credit landscape. “The Madani government emphasises justice and inclusiveness to safeguard people’s welfare while restoring confidence in institutions, as envisioned under the Madani Economy framework,” she said. — Bernama