What the Consumer Credit Bill 2025 Means for Borrowers in Malaysia

Introduction

The Malaysian government is introducing the Consumer Credit Bill 2025 (CCB 2025) to create a safer and more transparent borrowing environment for consumers. With digital lending and non-bank credit providers becoming more common, this bill aims to regulate the industry, improve borrower protection, and eliminate unethical practices.

Whether you're applying for a personal loan, using a Buy-Now-Pay-Later (BNPL) service, or borrowing from a licensed moneylender — this law affects you.

What Is the Consumer Credit Bill 2025?

The Consumer Credit Bill 2025 is designed to:

• Centralise oversight of all non-bank credit providers

• Introduce a new regulator: the Consumer Credit Commission (CCC)

• Protect Malaysian borrowers from unethical lending

• Ensure fair treatment, transparency, and access to redress

The bill will be implemented in phases, starting with registration and licensing, followed by full enforcement of lending conduct and consumer protections.

Key Benefits for Borrowers

✅ 1. Licensing for All Non-Bank Credit Providers

Every lender outside the traditional banking system — including:

• Buy-Now-Pay-Later (BNPL) providers

• Licensed moneylenders (under KPKT)

• Peer-to-peer lenders

• Credit leasing and digital credit platforms

...must be licensed and regulated. This ensures greater safety and accountability for borrowers.

✅ 2. Regulation of Credit Services (Debt Collection, Advisory, etc.)

Entities offering:

• Credit repair

• Debt restructuring

• Repossession services

• Loan advisory

...will also be regulated to prevent harassment or abuse and must follow ethical guidelines.

✅ 3. Mandatory Transparency

Lenders must clearly disclose:

• Interest rates

• Total repayment cost

• Late payment fees

• Tenure and repayment terms

This allows you to compare offers more confidently — and avoid hidden costs.

✅ 4. Stronger Consumer Protection

• Misleading ads, unfair contract terms, and aggressive debt collection will be banned

• Clear procedures for handling disputes and complaints

• Borrowers have access to a proper redress mechanism under the CCC

How It Will Be Rolled Out

The implementation will happen in three phases:

• Phase 1 (2025): Licensing of non-bank credit providers

• Phase 2: Conduct requirements and borrower protections come into force

• Phase 3: Expansion to other forms of credit and service providers (including digital platforms)

What It Means for Borrowers Like You

If you’ve ever:

• Worried whether a lender is legit

• Been asked to pay fees upfront

• Been confused by loan terms

• Been rejected for being self-employed

• Received scammy WhatsApp messages

...then this bill is designed to protect you.

Borrowers can expect:

• More transparent and safer credit options

• Better complaint-handling mechanisms

• Stricter action against unlicensed lenders and scammers

How MoneyMart Asia Is Supporting This Move

At MoneyMart Asia, we’ve always believed in responsible, transparent borrowing. This bill supports what we already do:

• Only list licensed lenders on our platform

• Help users compare offers without making multiple applications

• Show full cost of borrowing — no hidden fees

• Never charge borrowers upfront fees

• Communicate clearly via official channels only

As the Consumer Credit Commission (CCC) takes shape, we’ll continue aligning with all upcoming standards.

FAQs

Q: What is the Consumer Credit Bill 2025 in Malaysia?
It is a law introduced to regulate non-bank credit providers, improve transparency, and protect consumers from unethical lending practices.

Q: Will it affect BNPL (Buy-Now-Pay-Later) services?
Yes — BNPL providers will be subject to licensing and regulation under the Bill.

Q: Who will regulate non-bank lenders under this Bill?
The new Consumer Credit Commission (CCC) will oversee licensing, enforcement, and dispute resolution.

Q: What happens if a lender is not licensed?
They cannot legally operate under the new law and may be subject to enforcement or shut down.

Q: Does this apply to digital platforms like MoneyMart Asia?
Yes — platforms that match borrowers and lenders will need to comply with CCC standards.

Conclusion

The Consumer Credit Bill 2025 is a long-awaited reform that puts the needs of borrowers first. As more Malaysians turn to personal loans and digital credit, this law ensures the industry is safer, fairer, and more transparent.

At MoneyMart Asia, we’re proud to be ahead of the curve — connecting users only to vetted, licensed lenders and helping Malaysians borrow smarter.

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This article was published by MoneyMart Asia (www.moneymart.asia). MoneyMart Asia (MMA) is a Loan platform which connects Borrowers to Licensed Lenders in a safe, simple and secure manner. We are registered as MMA FINTECH SDN BHD (1613722-W).