Credit Term
CCA 2025
Consumer Credit Act 2025
A 2025 law that brings previously unregulated credit businesses — such as Buy Now Pay Later, leasing, factoring, debt collection and impaired-loan buyers — under formal oversight, through a new Consumer Credit Commission. It aims to protect borrowers with clearer rules on disclosure, affordability and fair conduct.
For years, some credit-related businesses in Malaysia fell outside the reach of Bank Negara or the Securities Commission. The Consumer Credit Act 2025 closes that gap by establishing a Consumer Credit Commission (SPPK) to license and supervise these 'non-bank' credit providers, and by setting standards on how they disclose costs, assess whether you can afford a product, and collect debts. It is being introduced in phases.
For consumers, the practical effect over time is stronger protection: clearer information before you commit to things like BNPL, fairer treatment if you fall behind, and a body to complain to. It does not replace the existing regulators for banks and licensed lenders; it extends similar consumer safeguards to parts of the credit market that previously had few. As the rules roll out, more of these providers will operate under formal supervision.
Useful guides & tools
This definition is drafted against primary sources (Bank Negara Malaysia, AKPK and the relevant Acts) and is pending editorial fact-check. If you find an error, tell us and we will correct it with a dated note.