By Danial Dzulkifly
KUALA LUMPUR, July 21 — The Dewan Rakyat today passed the Consumer Credit Bill 2025, paving the way for a unified regulatory framework to oversee non-bank lenders, including buy now, pay later (BNPL) service providers and debt collection agencies.
In her wind-up, Deputy Finance Minister Lim Hui Ying said while there is no maximum interest rate for BNPL schemes under the first phase of the law’s implementation, the government will consider it based on collected industry data.
“We are not capping BNPL interest rates at this stage. We will collect data first, and the aim in Phase 2 is to establish a suitable cap,” she said in Parliament today.
Lim was responding to a supplementary question by Putrajaya MP Datuk Radzi Jidin, who raised concerns over borrower affordability and the need for a cap on interest rates.
She explained that current BNPL rates are determined through commercial agreements between providers and merchants. While some platforms such as Lazada and TikTok Shop allow multiple BNPL options, others operate within their own ecosystems.
Lim said the government does not intend to interfere in these commercial decisions right now, but stressed that the new law is balanced and encourages innovation while enhancing consumer protection.
Under the new framework, BNPL providers will be required to carry out creditworthiness and affordability assessments before offering financing, to prevent consumers from accumulating unsustainable debt.
“This ensures loans are not issued arbitrarily, but matched to the borrower’s financial capacity,” she said.
The bill will also empower the Consumer Credit Commission to regulate fair lending practices, set late fee guidelines, and enforce ethical conduct among debt collection agencies.
This includes banning aggressive recovery tactics such as threats, harassment, or impersonation of enforcement officers.
Lim said the commission will monitor licensed debt collection agencies and take firm action against any misconduct, including imposing fines, revoking registration, or pursuing criminal charges.
The legislation will also formalise professional standards in the debt collection sector, complementing the establishment of the Association of Professional Debt Collection Agency Malaysia as an industry body last June.
The Consumer Credit Bill 2025 will now move to the Dewan Negara for further deliberation.
