Budget 2023: Consumer Credit Act to monitor Buy Now, Pay Later services

KUALA LUMPUR, Feb 24 — Putrajaya will set up an oversight board and enact the Consumer Credit Act (CCA) to monitor Buy Now, Pay Later credit services, said Prime Minister Datuk Seri Anwar Ibrahim today.

Anwar, who is also finance minister, said in his Budget 2023 speech that the new regulations seek to protect the rights of users.

“To ensure fair services that protect the rights of the individuals and businesses, the government will enact the Consumer Credit Act and set up a Consumer Credit Oversight Board (CCOB) to regulate businesses that provide credit services this year,” said Anwar when tabling Budget 2023 today.

The Buy Now, Pay Later (BNPL) scheme provides users with the convenience of instalment payments at a zero-interest rate over a fixed period.

Bank Negara Malaysia (BNM) however cautioned users about other charges such as processing fees and late payment fees and overspending.

In July 2022, BNM said the Ministry of Finance and the Securities Commission are currently driving inter-agency efforts to enact the CCA which will also entail the establishment of the CCOB.