CCOB invites public feedback on Consumer Credit Act

The Act provides a comprehensive framework for regulating the conduct of entities providing credit or credit services to consumers

by AUFA MARDHIAH / pic TMR FILE

THE Consumer Credit Oversight Board (CCOB) Task Force is inviting feedback on the proposed regulatory and authorisation framework of the Consumer Credit Act (CCA).

Introduced on the government’s recommendation, the Act provides a comprehensive framework for regulating the conduct of entities providing credit or credit services to consumers which focus on those who are currently not subjected to direct regulations, including new forms of credit regulation like “Buy Now Pay Later”.

Through CCA, CCOB as an independent authority is free to supervise consumer credit providers and credit service providers.

The first of two public consultations provide an overview of the current landscape of the consumer credit industry in Malaysia. 

It also points out the challenges and proposed reforms to better protect individuals and small businesses in their dealings with credit providers and credit service providers.

The reforms will take place in phases over several years to deliver consistent protection standards for credit consumers and support the orderly development of Malaysia’s credit industry.

“CCOB is seeking feedback on the proposed regulatory and authorisation framework, as well as areas to be addressed in the legislation to promote high standards of professionalism and fair conduct of credit providers and credit service providers.

“This will be followed by Part 2 of the consultation paper, which is targeted for release in the fourth quarter of this year, and provide further details on the authorisation, governance and conduct requirements that will apply to credit providers and credit service providers,” CCOB said in a statement today.

The public consultation paper is available for download from CCOB’s website — www.ccob.my.

Those interested can provide feedback and comments on the consultation paper to CCOB by Sept 5 via email at [email protected].