Consumer Credit Act 2025
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When was the Consumer Credit Act 2025 gazetted and when did it come into force?
The Consumer Credit Act 2025 was gazetted on 31 December 2025. All parts of the Act (except Part V) came into force on 1 March 2026. Part V, which relates to licensing and registration, came into force on 1 June 2026.
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What is the Consumer Credit Act 2025 and who does it protect?
The Consumer Credit Act 2025 is legislation that regulates credit providers in Malaysia, including moneylending, leasing/hire purchase, and credit sales. Its purpose is to protect the rights and interests of credit consumers who use these services.
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How does the Consumer Credit Act 2025 affect my existing credit agreements?
Under the Consumer Credit Act 2025, credit agreements must comply with the principle that terms between credit providers and credit consumers are fair.
Existing agreements will be reviewed and assessed by SKP. -
What are my rights as a credit consumer under the Consumer Credit Act 2025?
As a credit consumer, you have the right to clear and transparent information on credit terms and conditions, including interest rates and charges. You are also entitled to fair treatment and access to mechanisms for lodging complaints in the event of a dispute.
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How does the Act protect me from excessive interest rates or hidden charges?
The Consumer Credit Act 2025 ensures full transparency in credit terms and conditions. Credit providers are required to clearly disclose all interest rates, fees, and charges in a comprehensive and transparent manner.
Suruhanjaya Kredit Pengguna (SKP)
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What is the role of Suruhanjaya Kredit Pengguna (SKP) once the Consumer Credit Act 2025 comes into force?
Suruhanjaya Kredit Pengguna (SKP) serves as the main regulatory body for non-bank credit. Its roles include licensing and registering industry participants, setting guidelines, supervising the activities of credit providers, managing complaints, and enforcing the provisions of the Consumer Credit Act 2025.
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How does SKP implement regulation and supervision?
A phased approach is adopted: Phase 1: SKP regulates previously unregulated entities, including credit providers (buy now, pay later schemes, factoring and leasing) and credit service providers (impaired loan buyers, debt collection, and debt counselling and management).
Phase 2: Regulatory responsibilities for certain credit activities will be transferred to SKP. This includes moneylending and pawnbroking activities (including Shariah-compliant) from KPKT, as well as hire purchase and credit sales businesses from KPDN.
Licensing and Registration
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Who needs to apply for licensing and registration with Suruhanjaya Kredit Pengguna (SKP)?
Businesses offering buy now, pay later (BNPL) schemes, leasing and factoring, which are categorised as credit businesses, are required to apply for licensing.
Credit service businesses, including debt collection, impaired loan buyers, and debt counselling and management, are required to apply for registration. -
How can credit business and credit service business entities apply for licensing and registration?
Applications for licensing and registration will open from 1 June 2026. Further information on application procedures, requirements, documentation, and application channels will be provided ahead of 1 June 2026.
Enquiries and Complaints
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How should credit providers and credit service providers handle complaints from credit consumers?
All credit providers and credit service providers are required to establish and implement transparent and fair complaints handling processes, including providing a one‑stop complaints centre that is easily accessible to credit consumers.
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How can I lodge a complaint with SKP against a credit provider or credit service provider?
Credit consumers are encouraged to first lodge a complaint with the relevant credit provider or credit service provider. If no response is received, or if the consumer is not satisfied with the proposed resolution, a complaint may be submitted to SKP via SKP CARE portal.
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Can I lodge a complaint with SKP against moneylenders or pawnbrokers?
The Ministry of Housing and Local Government (KPKT) remains the Registrar responsible for regulating conventional moneylenders and pawnbrokers. Therefore, any complaints against these entities should be directed to KPKT.
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What should I do if I encounter technical issues when using SKP’s enquiry and complaints system?
If you experience technical issues, please email the details of the problem—such as system errors, form submission failures, or other technical issues—to Contact SKP support. We are committed to continuously improving our service quality.