What Will Happen to Existing Credit Providers Under the Consumer Credit Bill 2005

Introduction

With the enactment of the Consumer Credit Bill 2025 (CCB), Malaysia’s consumer credit landscape is entering a new chapter. While much attention has focused on how this protects borrowers, it’s equally important to understand what this means for existing non-bank credit providers — including licensed moneylenders, BNPL operators, leasing companies, and others.

If you’re currently operating in this space, this guide outlines how the Bill affects you, what you’ll need to do, and how to transition smoothly into the new regulatory environment.

Why This Bill Changes Everything

Before the CCB, regulation of non-bank credit providers was fragmented, with oversight coming from different ministries like KPKT or state authorities. This led to:

• Inconsistent compliance standards

• Varying consumer experiences

• Loopholes exploited by bad actors

The Consumer Credit Commission (CCC), to be established under the Act, will become the central authority for all non-bank credit oversight, replacing multiple regulatory regimes with a single framework.

Who Is Affected?

The following businesses will now fall under CCC licensing and supervision:

• Licensed moneylenders (currently under KPKT)

• Buy-Now-Pay-Later (BNPL) providers

• E-wallet credit services

• Credit leasing / factoring / hire-purchase companies

• Credit service providers, including:

  • Loan brokers

  • Debt collectors

  • Credit repair services

  • Repossession agents

Even digital-first or app-based services will need to register and comply.

Transition Timeline and Process

✅ Phase 1: Temporary Registration

• Existing providers can register with the Consumer Credit Oversight Board (CCOB) Task Force

• This ensures legal continuity while full CCC licensing is rolled out

✅ Phase 2: Licensing Under the CCC

• All providers must submit formal license applications

• Licensing conditions will depend on business type, scale, and compliance readiness

✅ Phase 3: Compliance Enforcement

Once licensed, providers must:

• Use standardised, transparent loan agreements

• Clearly disclose all fees and interest rates

• Treat borrowers fairly (no excessive charges or harassment)

• Comply with data protection and reporting duties

Challenges for Existing Providers

While legitimate providers will be supported during the transition, challenges may include:

• ❌ Unlicensed operators will not be allowed to continue

• ⚠️ Smaller firms may face hurdles meeting operational or documentation standards

• 🔧 Business models may need restructuring (e.g. BNPL platforms requiring credit checks)

Those unwilling or unable to comply risk being phased out of the market entirely.

Opportunities for Compliant Lenders

For licensed and transparent providers, this new regulatory environment offers:

• ✅ Greater public trust and borrower confidence

• ✅ Eligibility to join digital aggregators like MoneyMart Asia

• ✅ Enforcement against unethical or illegal competitors

• ✅ Streamlined compliance aligned with modern fintech standards

The CCB levels the playing field for ethical players and opens the door to sustainable growth.

How MoneyMart Asia Will Support This Shift

At MoneyMart Asia, we welcome this reform and are preparing our systems to support:

• Only licensed, CCC-compliant lenders

• Partners in transition from temporary registration to full CCC status

• Borrowers looking to compare offers from regulated providers only

• Full alignment with CCC’s disclosure, transparency, and data protection expectations

We believe this change benefits everyone — lenders, borrowers, and the financial ecosystem.

Final Thoughts

The Consumer Credit Bill 2025 doesn’t just change how Malaysians borrow — it transforms who can lend, how they must operate, and what standards they must meet.

If you're a provider, now is the time to embrace this transition. It’s a chance to build your credibility, expand safely, and become part of a trusted ecosystem that puts consumers first.

Call-to-Action

📣 Are you a credit provider ready to operate under CCC standards?
Reach new borrowers through a trusted, transparent platform.

📩 Email info@moneymart.asia to learn how to list your offerings.
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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).