CONSUMER CREDIT ACT 2025

Consumer Credit LAWS OF MALAYSIA Act 873 CONSUMER CREDIT ACT 2025 1 2 Laws of Malaysia Act 873 Date of Royal Assent ... ... 22 December 2025 Date of publication in the Gazette ... ... 31 December 2025 Publisher’s Copyright C PERCETAKAN NASIONAL MALAYSIA BERHAD All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording and/or otherwise without the prior permission of Percetakan Nasional Malaysia Berhad (Appointed Printer to the Government of Malaysia). Consumer Credit LAWS OF MALAYSIA Act 873 CONSUMER CREDIT ACT 2025 ARRANGEMENT OF SECTIONS Part I PRELIMINARY Section 1. 2. 3. 4. 5. Short title and commencement Application No contracting out and ouster of choice of law Interpretation Credit consumer and credit Part II CONSUMER CREDIT COMMISSION Division 1 Establishment, functions and powers of Commission 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. Establishment of Commission Functions of Commission Powers of Commission Board Appointment of members of Board Term of office Revocation of appointment and resignation Remuneration and allowances Meetings of Board Actions and proceedings of Board not affected by vacancy, etc. Delegation of functions and powers, etc. Power to engage persons to render assistance Board Committees Disqualification of members of Board and Board Committee 3 4 Laws of Malaysia Act 873 Section 20. Disclosure of interest 21. Returns, reports, accounts and information Division 2 Executive Chairman and Deputy Executive Chairman 22. Executive Chairman 23. Absence or inability of Executive Chairman and Deputy Executive Chairman Division 3 Officers of Commission 24. Appointment of officers of Commission, etc. 25. Power to provide grants, loans, financing and advances to its officers, etc. Division 4 Finance 26. Fund of Commission 27. Funding to Commission 28. Financial year 29. Annual report 30. Accounts 31. Power to borrow 32. Investment 33. Commission may establish or participate in body corporate Part III FUNCTIONS AND POWERS OF REGULATORY AND SUPERVISORY AUTHORITY 34. 35. Regulatory and Supervisory Authority Appointment of officers or other persons Consumer Credit 5 Part IV ADVISORY COMMITTEE Section 36. Establishment of Advisory Committee 38. Functions of Advisory Committee 37. 39. Membership Meetings of Advisory Committee Part V LICENSING AND REGISTRATION Division 1 Licensing 40. Requirement for licence 41. Application for licence 42. Grant of licence 43. Grounds for refusal of licence 44. Minimum financial requirements for licensing 45. Fit and proper requirements of licensed credit provider 46. Directors and senior management of licensed credit provider 47. Controller of licensed credit provider 48. Acquisition of interest in shares of licensed credit provider 49. Appointment of auditor by licensed credit provider 50. Revocation or suspension of licence 51. Voluntary surrender of licence 52. Effect of revocation, suspension and surrender of licence 53. Fees payable by licensed credit provider 54. Establishment, relocation or closure of branch, etc., of licensed credit provider 55. Transfer or assignment of licence 56. Sale, disposal, leasing, etc., of credit business 6 Laws of Malaysia Act 873 Division 2 Registration Section 57. Requirement for registration 58. Application for registration 59. Registration 60. Grounds for refusal of registration 61. Minimum financial requirements for registration 62. Fit and proper requirements of registered credit service provider 63. Directors and senior management of registered credit service provider 64. Controller of registered credit service provider 65. Acquisition of interest in shares of registered credit service provider 66. Appointment of auditor by registered credit service provider 67. Deregistration or suspension of registration 68. Voluntary deregistration 69. Effect of deregistration, suspension and voluntary deregistration 70. Fees payable by registered credit service provider 71. Establishment, relocation or closure of branch, etc., of registered credit service provider 72. Transfer or assignment of registration 73. Sale, disposal, leasing, etc., of credit service business Division 3 General matters 74. Application by aggrieved person for review on decision under this Part 75. Appeal to Minister of Housing and Local Government on decision under this Part 76. Publication of names of licensed credit providers and registered credit service providers 77. Agreements with unlicensed credit provider not enforceable 78. Presumption as to business of providing credit or credit service 79. Non-application of Part V Consumer Credit 7 Part VI ISLAMIC CREDIT BUSINESS Section 80. Application 81. Duty to ensure compliance with Shariah 82. Internal policies and procedures on Islamic credit business 83. Reference to Shariah Advisory Council from court or arbitrator Part VII BUSINESS CONDUCT FOR CREDIT CONSUMER PROTECTION Division 1 Conduct requirements 84. Duty to ensure fair, responsible and professional business conduct 85. Compliance with regulations and standards or guidelines on business conduct 86. Financial hardship Division 2 Prohibited business conduct 87. Prohibited business conduct Part VIII EXAMINATION AND INVESTIGATION Division 1 Examination powers 88. Examination by Regulatory and Supervisory Authority 89. Duty to provide access to, and produce documents, information, etc. 8 Laws of Malaysia Act 873 Division 2 Investigation powers Section 90. Investigation by Regulatory and Supervisory Authority 92. Powers of entry, search and seizure with warrant 91. 93. 94. 95. 96. 97. 98. 99. 100. 101. 102. 103. 104. 105. Powers of investigating officer Admissibility of warrant Powers of entry, search and seizure without warrant List of seized property, etc. Release, disposal or forfeiture of seized goods, etc. Search of person Obstruction to exercise of powers by investigating officer Requirement to provide translation Power to examine persons for investigation Service of notices generally, etc. Surrender of travel documents Agent provocateur Admissibility of documentary evidence, etc. Assistance to police officer or public officer Part IX ENFORCEMENT Division 1 Administrative actions 106. Power of Regulatory and Supervisory Authority to take action 108. Lodgment of amount not distributed with Registrar of Unclaimed Moneys 107. Application for review or appeal of decision under paragraph 106(3)(b) Division 2 Civil enforcement actions 109. Civil enforcement action by Regulatory and Supervisory Authority 111. Evidence obtained in investigations may be used in civil proceedings 110. Orders by court Consumer Credit 9 Division 3 Criminal offences Section 112. Offences in relation to entries in documents 113. Offence by any person acting in official capacity, etc. 114. Offence by employee, officer, agent, etc. 115. Attempts, abetments and conspiracies 116. Joinder of offences 117. Seizable offence 118. Power to compound 119. Institution of prosecution Division 4 General matters 120. Protection in relation to disclosure of information Part X GENERAL PROVISIONS 121. Additional powers of Minister 122. Power to make regulations 123. Power to specify standards or guidelines 124. Provisions relating to approvals, consent, standards or guidelines, specifications, notices, requirements or directions 125. Power of Regulatory and Supervisory Authority to issue guidance 126. Power of Regulatory and Supervisory Authority to publish information 127. Power to exempt 128. Power to amend Schedules 129. Power to require submission of document or information 130. Protection against suit and legal proceedings 131. Opportunity to make written representations 132. Obligation of secrecy 10 Laws of Malaysia Act 873 Section 133. Confidential information 134. Things done in anticipation of the enactment of this Act, etc. 135. Transitional Schedule 1 Schedule 2 Schedule 3 Schedule 4 Schedule 5 Schedule 6 Schedule 7 11 Consumer Credit LAWS OF MALAYSIA Act 873 CONSUMER CREDIT ACT 2025 An Act to provide for, the establishment of the Consumer Credit Commission, protection of the interests of credit consumers, regulation and supervision of conventional or Islamic credit business and credit service business, proper conduct and responsible lending practices in the credit industry and promotion of a fair, efficient and transparent credit industry, and to provide for related matters. [ ] ENACTED by the Parliament of Malaysia as follows: Part I PRELIMINARY Short title and commencement 1. (1) This Act may be cited as the Consumer Credit Act 2025. (2) This Act comes into operation on a date to be appointed by the Minister by notification in the Gazette and the Minister may appoint different dates for the coming into operation of different parts or different provisions of this Act. 12 Laws of Malaysia Act 873 Application 2. (1) This Act shall apply to any person carrying on a credit business or credit service business involving a credit consumer except for the credit provided by a person as set out in Schedule 1. (2) Notwithstanding subsection (1), subsections 79(2) and (3) shall apply to any person carrying on a credit business as set out in paragraph 1 or paragraph 3 of Schedule 4 that does not involve a credit consumer. (3) Subject to subsection (5), this Act shall be read together with the relevant written laws and the provisions of this Act shall be in addition to, and not in derogation of, the provisions of such written laws, including the following: (a) the Financial Services Act 2013 [Act 758]; (b) the Islamic Financial Services Act 2013 [Act 759]; (c) the Development Financial Institutions Act 2002 [Act 618]; (d) the Capital Markets and Services Act 2007 [Act 671]; (e) the Securities Commission Malaysia Act 1993 [Act 498]; (f) the Hire-Purchase Act 1967 [Act 212]; (g) the Consumer Protection Act 1999 [Act 599]; (h) the Moneylenders Act 1951 [Act 400]; (i) the Pawnbrokers Act 1972 [Act 81]; (j) the Co-operative Societies Act 1993 [Act 502]; and (k) the Malaysia Co-operative Societies Commission Act 2007 [Act 665]. (4) Nothing in this Act shall remove or restrict the effect of, or prevent the reliance on— (a) any written law which imposes on a credit provider or credit service provider a duty stricter than that imposed under this Act; Consumer Credit 13 (b) any written law by which any term consistent with this Act is to be implied in a credit agreement; or (c) any term in any agreement in writing between a credit consumer with a credit provider or credit service provider, as the case may be, to the extent that the term— (i) imposes a stricter duty on the credit provider or credit service provider than that imposed under this Act; or (ii) provides a remedy more advantageous to the credit consumer than the remedies provided under this Act. (5) Where there is any conflict or inconsistency in the application of the provisions of this Act in cases involving credit providers or credit service providers regulated by the Securities Commission Malaysia, such cases shall be dealt with in accordance with the securities laws and guidelines issued by the Securities Commission Malaysia and the rules of exchange as approved by the Securities Commission Malaysia. No contracting out and ouster of choice of law 3. (1) The provisions of this Act shall have effect notwithstanding anything to the contrary in any agreement. (2) This Act shall have effect notwithstanding any contract term which applies or purports to apply the law of another country where the term appears to the court to have been imposed wholly or mainly for the purpose