Consumer Credit Act 2025 Malaysia

The Consumer Credit Act 2025 (CCA 2025), also known as Act 873, was gazetted on 31 December 2025 and came into force on 1 March 2026. This Act represents the largest reform in the history of Malaysia’s non-bank credit industry, creating a single comprehensive framework for a sector that previously operated under limited or, in some areas, no dedicated oversight. Ccob

Before CCA 2025, Malaysia’s consumer credit industry was governed by several separate laws — the Moneylenders Act 1951, the Pawnbrokers Act 1972, and the Hire-Purchase Act 1967 — each with different standards and regulators. BNPL platforms and leasing companies, meanwhile, operated without any specific oversight. CCA 2025 brings this fragmentation to an end.

The Act aims to regulate the conduct of Malaysia’s consumer credit industry in a more comprehensive, integrated, and effective manner by providing a broad and consistent regulatory framework, developing Authorisation Standards and Conduct Standards, and establishing an integrated monitoring and enforcement system.

Key Dates: From Gazette to Full Enforcement

Understanding the implementation timeline of CCA 2025 is important for both consumers and industry players. Below are the key dates:

CCA 2025 was gazetted on 31 December 2025 and came into force on 1 March 2026, except for Part V, which relates to the licensing of credit business providers and credit service providers, and which will come into force on 1 June 2026. Zico Insource

Consumer Credit Commission (CCC): The New Regulatory Body

In line with the enforcement of the CCA, which is intended to strengthen consumer credit protection in Malaysia, the Government has established the Consumer Credit Commission (CCC). Ccob

The CCC has begun operations and is currently focused on issuing the necessary standards for authorisation and conduct regulation. RinggitPlus

The CCC performs the following functions:

• Issuing licences to credit providers and registering credit service providers
• Setting and enforcing industry Conduct Standards
• Investigating complaints and taking action against unlicensed operators
• Maintaining a Public Register of licensed credit providers
• Promoting financial education and a culture of responsible credit use

The Commission will serve as the main authority responsible for regulating consumer credit activities in Malaysia, including supervising credit providers, issuing licences, and ensuring that companies comply with the law. Richardweechambers

Before CCA 2025, consumers could check the licensing status of moneylenders through the i-KrediKom app. Now, the CCC is legally required to maintain and publish a list of all licensed credit providers and registered credit service providers under its supervision, making it easier for consumers to identify legitimate and regulated operators.

Scope of the Act: Who Is Protected and What Is Regulated?

CCA 2025 defines a “credit consumer” as an individual or small business that obtains credit primarily for personal or domestic purposes, or an enterprise with credit not exceeding RM500,000.

Sectors now regulated by CCA 2025:

Credit business providers requiring a licence:

• Buy Now, Pay Later (BNPL) schemes, including Islamic variants
• Non-bank leasing companies
• Non-bank factoring companies
• Licensed moneylenders
• Pawnbrokers
• Non-bank hire-purchase providers
• Credit sales providers

Credit service providers requiring registration:

• Debt collection agencies
• Impaired loan acquisition companies, also known as bad debt purchasers
• Debt counselling and debt management agencies

Consumer Protections Under CCA 2025

CCA 2025 introduces several concrete protections designed to address common problems faced by Malaysian consumers:

Mandatory Affordability Assessment

Section 85 of the Act allows regulations to require an affordability assessment before credit is offered to consumers. Credit providers must ensure that borrowers have the financial capacity to fully repay their debts without experiencing undue financial hardship throughout the credit facility period. Conventus Law

Interest Rate Transparency

Credit providers are required to disclose the Effective Interest Rate (EIR) — the true cost of borrowing, taking into account the effect of compounding. This makes it easier to compare different offers because consumers can see the real rate, not just the nominal rate.

Honest Advertising

Promotional materials must not describe a product as “free” or “cost-free” if conditions apply or other fees exist. Advertising must be accurate, clear, and not misleading.

Fair Contract Terms

Credit agreements must not contain unfair provisions. Interest rates and fees must not be excessive. Contracts must also include payment reminders at reasonable intervals before amounts become due.

Data Protection

Your personal and financial information must be used only as stated in the credit agreement and in accordance with the Personal Data Protection Act.

Access to Remedies

The Act establishes a Consumer Credit Tribunal where you can file complaints about inadequate disclosure, misleading practices, or unfair treatment. The Tribunal may order compensation, require corrections to credit terms, and impose penalties on providers that breach the rules.

BNPL in Malaysia: Latest Data and Regulatory Impact

In 2025, 7.5 million users carried out 243 million BNPL transactions worth RM21.3 billion — three times more than in 2023. This rapid growth, especially among young people, was one of the main factors behind the introduction of CCA 2025. Liew Chin Tong

Those aged 30 and below account for around 40% of all BNPL transactions in the country, highlighting growing financial vulnerability among Malaysian youth. Liew Chin Tong

Popular BNPL platforms in Malaysia include SPayLater by Shopee, GrabPayLater, Atome, and FavePay Later. From 1 June 2026, all BNPL operators will be required to obtain an official licence and register under the CCC. BusinessToday

What changes for BNPL users after CCA 2025?

• Mandatory financial affordability assessment before transaction approval
• Clear disclosure of terms, with no hidden charges
• Credit data shared with reporting agencies such as CTOS — a poor record on one platform may affect your standing on other platforms
• Official complaint mechanisms through the CCC and the Consumer Credit Tribunal

Licensing and Registration Requirements from 1 June 2026

Credit providers and credit service providers must meet licensing requirements and register with the Consumer Credit Commission (CCC) effective 1 June 2026, in line with the Consumer Credit Act 2025 (Act 873). Ministry of Finance

To qualify for and maintain a licence or registration, applicants must meet the prescribed minimum financial thresholds at all times and demonstrate that their controllers, directors, and senior management are “fit and proper”. DFDL

The “fit and proper” test covers three elements:

1. Probity, personal integrity, and reputation
2. Competence and capability
3. Financial integrity

Non-compliance may lead to regulatory enforcement action or criminal conviction, including public or private reprimands, orders to take or stop certain actions, financial penalties of up to RM500,000, and action against individuals, including removal from or restriction from the industry for up to five years. Cheang & Ariff

What Is NOT Covered by This Act?

CCA 2025 is designed to fill gaps in the existing framework, not replace everything. The Act does not cover:

• Licensed banks and financial institutions regulated by Bank Negara Malaysia, such as Maybank, CIMB, and Public Bank
• Credit cards and charge cards issued by licensed banks
• Insurance and takaful providers
• Cooperatives regulated by the Malaysia Co-operative Societies Commission

If you borrow from a bank for a housing loan, personal loan, or car financing, you remain protected by the existing Bank Negara Malaysia regulations under the Financial Services Act. CCA 2025 fills the gap around non-bank providers.

How to File a Complaint If Your Rights Are Violated

If a credit provider breaches CCA 2025, you have several channels for action:

1. File a complaint with the Consumer Credit Tribunal

This independent body has been established specifically to handle credit-related disputes. The process is designed to be accessible — no lawyer is required, filing fees are minimal, and resolutions are faster than civil court proceedings.

2. Report the matter to the Consumer Credit Commission (CCC)

For serious breaches, such as operating without a licence, report directly to the CCC. The Commission can investigate and penalise unlicensed operators.

3. Existing complaint channels

You may also file a complaint through the National Consumer Complaints Centre or the Ministry of Domestic Trade and Cost of Living.

When filing a complaint, prepare the following documentation:

• Credit agreement
• Payment records
• Correspondence with the provider
• Advertising or promotional materials you relied on