KUALA LUMPUR (March 2): Buy now, pay later (BNPL) and other credit providers will have six months to comply with licensing requirements under the Consumer Credit Act 2025 once the rules take effect, according to the Ministry of Finance. The licensing rules take effect on June 1, 2026.

The Consumer Credit Act 2025 was gazetted Dec 31, 2025, taking effect on March 1, 2026.

Under the law, credit providers such as BNPL companies, leasing firms and factoring companies must obtain a licence from the Consumer Credit Commission (CCC), while credit service providers including debt collection agencies, impaired loan or financing acquisition firms, and debt counselling and management agencies must register with the commission.

The CCC will regulate the consumer credit industry through clearer rules, authorisation standards, codes of conduct, and systems for monitoring and enforcement.

Minister of Finance II Datuk Seri Amir Hamzah Azizan in a statement said the move aims to create a more transparent and responsible credit system, while strengthening consumer protection against unfair or unethical practices.

The Act is intended to enhance governance in the credit industry and ensure credit practices are transparent, fair and professional.

Under the Consumer Credit Act 2025, BNPL and other non-bank credit providers must follow responsible lending rules: assess creditworthiness and affordability, ensure fair contracts and transparent fees, and adopt ethical debt collection practices.