Akta Kredit Pengguna 2025
Applies to: Federal Act — see s 2 (Application) · Official text ↗
- Defines who qualifies as a credit consumer, including individuals for personal use and micro-enterprises (s 5(1)).
- Establishes the Consumer Credit Commission to advise the government and promote proper conduct in the industry (s 7).
- Requires credit providers to manage their business in a fair, responsible, and professional manner (s 84).
- Allows credit consumers to apply for financial hardship assistance and suspends legal proceedings during assessment (s 86).
- Prohibits specific business conduct listed in Schedule 6, with penalties for contravention (s 87).
- States that agreements with unlicensed credit providers are not enforceable (s 77).
- Provides mechanisms for reviewing Commission decisions and appealing Registrar decisions (ss 74–75).
- Empowers the Regulatory and Supervisory Authority to impose monetary penalties and other actions for breaches (s 106).
- Comes into operation on dates appointed by the Minister by notification in the Gazette — different dates for different provisions — so check which parts are in force (s 1)
What this law is
The Consumer Credit Act 2025 (Akta Kredit Pengguna 2025) is numbered Act 873 in the Laws of Malaysia. Where it applies is set out in section 2 (Application).
Its long title, as printed in the official text: 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.
Read every section, the amendment history and the official copy on our law library page for this Act.
How the Act is arranged
- Part I — Preliminary (ss 1–5)
- Part II — Consumer credit commission (ss 6–33)
- Part III — Functions and powers of regulatory and supervisory authority (ss 34–35)
- Part IV — Advisory committee (ss 36–39)
- Part V — Licensing and registration (ss 40–79)
- Part VI — Islamic credit business (ss 80–83)
- Part VII — Business conduct for credit consumer protection (ss 84–87)
- Part VIII — Examination and investigation (ss 88–105)
- Part IX — Enforcement (ss 106–120)
- Part X — General provisions (ss 121–135)
Part titles are from the official arrangement of sections.
Time limits in this Act
| What | Limit | Section |
|---|---|---|
| Application for review of a Commission decision | within fourteen days after the aggrieved person is notified of such decision | s 74(2) |
| Application for appeal against a Registrar's decision | within fourteen days after having been notified of the decision | s 75(1) |
Offences and penalties
| Offence | Penalty (as written in the Act) | Section |
|---|---|---|
| Engaging in prohibited business conduct as set out in Schedule 6 | liable to a fine not exceeding five million ringgit or to imprisonment for a term not exceeding five years or to both | s 87(2) |
| Breach of the Act, regulations, or orders (excluding Schedule 7 breaches) | monetary penalty in such amount as the Regulatory and Supervisory Authority considers appropriate, but in any event not exceeding five hundred thousand ringgit | s 106(3)(b) |
Laws cited on this page
| Act 873 | Consumer Credit Act 2025 Akta Kredit Pengguna 2025 | PDF · PDF (BM) · Official ↗ |
Each law links to our mirror page: a copy of the official text captured on a known date, its version history, and the official source. Law library →
Key sections
| Provision | What it says, in plain words |
|---|---|
| s 1 | The Act is titled the Consumer Credit Act 2025 and comes into operation on a date appointed by the Minister, which may differ for different parts of the Act. |
| s 2 | The Act applies to persons carrying on credit or credit service businesses involving credit consumers, excluding specific credits listed in Schedule 1, and works alongside other existing laws without removing stricter duties. |
| s 4 | This section defines key terms such as 'credit', 'credit provider', 'credit service provider', and 'property' to clarify the scope of the legislation. |
| s 5 | A credit consumer includes individuals obtaining credit for personal, domestic, or household purposes, micro or small enterprises within prescribed limits, and social guarantors acting without profit. |
| s 7 | The Commission's functions include advising the Minister and Government on consumer credit matters, promoting proper conduct among providers, and developing the consumer credit industry. |
| s 74 | An aggrieved person may apply in writing within fourteen days for the Commission to review its own decision, during which the decision does not take effect unless the Commission specifies otherwise for public interest. |
| s 75 | A person aggrieved by a Registrar's decision may appeal in writing to the Minister of Housing and Local Government within fourteen days, and the decision does not take effect until the appeal is disposed of unless specified otherwise. |
| s 77 | Any credit agreement entered into between a credit consumer and an unlicensed credit provider is not enforceable. |
| s 84 | Credit providers and credit service providers must manage and ensure their business is carried on in a fair, responsible, and professional manner when dealing with credit consumers. |
| s 86 | Credit consumers may apply for financial hardship assistance, and the credit provider must assess the application, during which time legal proceedings against the consumer are suspended. |
| s 87 | No person shall engage in prohibited business conduct as set out in Schedule 6, and contravention is an offence punishable by a fine, imprisonment, or both. |
| s 106 | The Regulatory and Supervisory Authority may take actions such as issuing orders, imposing monetary penalties up to five hundred thousand ringgit, reprimanding, or barring individuals from management roles for breaches of the Act. |
Worked examples
Facts. Ahmad buys a phone on instalments from a business that carries on a credit business but holds no licence under the Act.
The law. No agreement under which credit is given and purporting to be a credit agreement between a credit consumer and an unlicensed credit provider is enforceable (s 77). Allowing goods to be paid for in instalments is "credit" (s 5(2)(b)), and an individual obtaining credit for personal purposes is a credit consumer (s 5(1)(a)).
Outcome. Once the relevant provisions are in force, the agreement is not enforceable against Ahmad (s 77).
Facts. Siti, a credit consumer, loses her job and cannot pay her credit provider. She applies for financial hardship assistance as per the Commission's guidelines.
The law. Section 86(3) allows a credit consumer to apply for assistance if financial hardship applies. Section 86(5) states that during the assessment, the credit provider's rights to commence legal proceedings are suspended.
Outcome. The credit provider must assess Siti's application, and they cannot start legal proceedings against her while this assessment is ongoing (s 86(3), s 86(5)).
Facts. The Commission makes a decision regarding a credit provider, and the provider is aggrieved by it. They wish to challenge the decision.
The law. Section 74(1) allows the Commission to review its own decision upon application by an aggrieved person. Section 74(2) requires the application to be made in writing within fourteen days of notification.
Outcome. The provider must submit a written application for review within fourteen days of being notified, and the original decision will not take effect until the review is disposed of (s 74(1), s 74(2), s 74(4)).
Examples are simplified illustrations with invented names; real cases turn on their own facts.
Questions & answers
Who is considered a credit consumer under this Act?
A credit consumer includes an individual obtaining credit for personal, domestic, or household purposes, a micro or small enterprise obtaining credit within prescribed limits, and an individual acting as a social guarantor without profit (s 5(1)).
What happens if I sign a loan agreement with someone who is not licensed?
If you enter into a credit agreement with an unlicensed credit provider, that agreement is not enforceable by law (s 77).
Can I ask for help if I am facing financial difficulties?
Yes, you may apply for financial hardship assistance from your credit provider if the circumstances qualify as financial hardship under Commission guidelines (s 86(3)).
What happens to legal proceedings if I apply for financial hardship assistance?
During the assessment of your financial hardship application, the credit provider's rights to commence any proceedings, execution, or other legal process against you are suspended (s 86(5)).
How long do I have to apply for a review if I disagree with a Commission decision?
You must make the application in writing within fourteen days after you are notified of the decision (s 74(2)).
What penalties can be imposed for prohibited business conduct?
A person who contravenes the prohibition on business conduct set out in Schedule 6 is liable to a fine not exceeding five million ringgit, imprisonment for a term not exceeding five years, or both (s 87(2)).
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Sources
Related
Consumer rightsMoneylenders Act 1951Hire-Purchase Act 1967Consumer Protection Act 1999