BNPL providers must assess affordability under new Consumer Credit Act
Finance Minister II Datuk Seri Amir Hamzah Azizan said the requirement is part of responsible lending practices under the upcoming Consumer Credit Act 2025 (CCA), which will establish a comprehensive regulatory framework to oversee credit providers and non-bank credit service providers.
This includes conducting affordability assessments before extending credit, ensuring fair contract terms, imposing transparent and reasonable fees, and adhering to professional debt collection standards.
"In this regard, assessing the ability to take on debt is an important requirement that BNPL companies must comply with before offering credit.
"This is necessary to ensure that borrowers, including the younger generation, can repay the money borrowed without experiencing serious financial stress and eventually falling into a debt trap," he told the Dewan Rakyat today.
He was responding to the queries by Young Syefura Othman (PH–Bentong), who asked about the measures taken by the government to regulate the BNPL system, which has now reached transactions worth RM7.1 billion, to prevent the younger generation from falling into uncontrollable debt.
Amir also said the Consumer Credit Commission (CCC) will monitor BNPL providers' compliance to ensure they uphold responsible lending practices.
"If there is any non-compliance that harms credit consumers, the CCC will have the authority to take appropriate regulatory and enforcement action," he said.
He added that the commission's supervisory approach prioritises consumer protection, focusing on fair treatment, transparency, and the development of a responsible credit market.
"In cases of non-compliance, enforcement may include administrative action, civil or criminal proceedings, or compound offers."
The CCC will also issue regulatory standards that BNPL companies must comply with, including licensing requirements, conduct rules, and governance criteria.
"This includes ensuring that board members and senior management are fit and proper, and that companies meet minimum financial thresholds," he said.
He added that the government also emphasised the importance of financial literacy to help Malaysians make informed decisions and avoid excessive reliance on BNPL schemes, which could lead to unsustainable debt.
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