Credit service providers, including Buy Now, Pay Later (BNPL) operators, are required to obtain licences and register with the Consumer Credit Commission (SKP) by June 1, 2026 under the Consumer Credit Act 2025 (Act 873).
The Act was gazetted on Dec 31, 2025 and will take effect on March 1, 2026, with a six-month transition period granted for compliance.
The licensing requirement applies to credit providers such as BNPL firms, leasing companies and factoring firms, as well as credit service providers including debt collection agencies, impaired loan acquisition companies and debt counselling and management agencies.
The Finance Ministry said the framework is aimed at strengthening consumer protection, enhancing industry governance and ensuring lending practices are transparent, fair and responsible.
The SKP will oversee the consumer credit industry through a unified regulatory framework, including authorisation standards, conduct requirements and an integrated monitoring and enforcement system.
