BNM Aims To Pass Consumer Credit Act In 2022
Author Avatar
(Image: New Straits Times)

Bank Negara Malaysia (BNM) has revealed that it is looking to pass the Consumer Credit Act in 2022, with the intention to bolster regulatory arrangements for all consumer credit activities. This includes buy-now-pay-later (BNPL) schemes.

To clarify, the Consumer Credit Act was earlier brought up by BNM as one of the strategic outcomes of its Business Plan 2018-2020. It sought to “impose consistent consumer protection requirements on banks and non-bank credit providers”, and was strongly advocated by the Federation of Malaysian Consumers Associations (FOMCA). The government subsequently pushed for the formulation of the Consumer Credit Act during the tabling of Budget 2021.

In working to enact this Act, the governor of BNM, Datuk Nor Shamsiah Mohd Yunus said that the central bank will be working closely with the Ministry of Finance (MoF) and the Securities Commission Malaysia (SC). At the same time, it also called for support from relevant authorities to monitor the development of BNPL schemes within the country, as well as to educate the public on such schemes.

(Image: Bernama)

Datuk Shamsiah commented that although the proportion of BNPL schemes within total household loans is still low, such programmes are quickly growing in popularity and need to be monitored.

“For the first nine months of this year, the total value of the [BNPL] transaction is estimated to be around 0.05% of total household borrowing. These schemes have been on the rise, not just in Malaysia, but also in other countries and there are legitimate concerns that such schemes may encourage consumers to spend beyond their means, with expensive debt that they may not be able to repay, and most BNPL schemes in Malaysia are offered by non-banks,” said Datuk Shamsiah during a joint conference by the central bank and the Department of Statistics Malaysia (DOSM).

Accordingly, Datuk Shamsiah urged Malaysians to always be thorough in reading the terms and conditions of BNPL schemes when applying for them, especially in terms of the fees charged. She also advised them to always repay their obligations in full on time to avoid penalties, as well as monitor their BNPL obligations to properly manage their debts.

(Source: The Star)

0 0 votes
Article Rating


Comments (0)

Notify of

Inline Feedbacks
View all comments
Top Debt Management Articles
Post Image
Things You Didn’t Know Can Help Reduce Your Credit Card Payment
Desiree Nair
- 14th March 2017
We’ve got a few ideas up our sleeves to help you bring down that bill and possibly even make future payments much more affordable!
Post Image
Tips to Help You Pay Off Your PTPTN Student Loan
Heeral Bhatt
- 25th January 2019
Graduated but piled up with PTPTN debt? Here are a few tips to manage the repayment of your student loan effectively.
Post Image
Cash Advance on Your Credit Card? Here’s What You Need to Know.
Diana Chai
- 5th July 2019
There are days when you need cash on the double and most (if not all) credit cards have this option. But before you run to your ATM; here are some things to think about.
Post Image
Best Balance Transfer Plans In Malaysia (July 2023)
Alex Cheong Pui Yin
- 13th July 2023
(Article updated on 13 July 2023.) Even during regular days, credit card balance transfer programmes are a good […]

Related articles

Related Posts Image
Related Posts Image
Related Posts Image

When Should You Get A Personal Loan?

Jacie Tan -
2nd February 2021
Related Posts Image