Kuala lumpur: The Consumer Credit Act 2025 (RUUKP) is set to be gazetted by the end of the year, offering enhanced protection for consumers by regulating excessive charges and enforcing ethical debt collection practices. This move aims to establish a consistent regulatory framework for credit industry players, thereby boosting confidence in the nation’s financial system, according to a statement from the Ministry of Finance (MoF).

According to BERNAMA News Agency, the RUUKP was passed in the Dewan Negara yesterday, marking a significant step in regulating the consumer credit industry and protecting the public from unfair, non-transparent, and oppressive practices. Currently, six consumer credit services, including buy-now, pay-later (BNPL) schemes, factoring, leasing, debt collection services, and debt management, remain unregulated. With the enactment of RUUKP, these services will fall under the supervision of the Consumer Credit Commission (SKP) in Phase 1, once the Act comes into force.

The SKP, to be established under the Act, will be an independent body overseeing previously unregulated credit providers. It will perform four main functions: advising the Finance Minister on consumer credit matters, guiding the government in national policy formulation, promoting fair and responsible conduct among credit providers, and supporting the growth of an efficient and transparent consumer credit industry.

Deputy Finance Minister Lim Hui Ying highlighted that the RUUKP will serve as the principal legislation for all Regulatory and Supervisory Authorities (RSAs) in monitoring consumer credit activities within their respective agencies. She emphasized that RUUKP represents a significant reform aimed at strengthening consumer protection and reshaping the country’s credit landscape. The MADANI government is committed to principles of justice and inclusiveness to ensure the welfare of the people, with an expectation that confidence in institutions will be restored under the MADANI Economy framework.