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CCOB Task Force

About Us

The Consumer Credit Oversight Board Task Force (CCOB Task Force) was set up in July 2021 and is led by the Ministry of Finance (MOF), Bank Negara Malaysia (BNM) and the Securities Commission Malaysia (SC) to drive the enactment of the CCA. This effort is undertaken in close collaboration with the Ministry of Domestic Trade and Cost of Living (KPDN), the Ministry of Housing and Local Government (KPKT), the Ministry of Entrepreneur and Cooperatives Development (KUSKOP) and Malaysia Co-operative Societies Commission (SKM).

What are the functions of CCOB?

The establishment of the CCOB is intended to regulate non-bank credit providers and credit service providers.

Enactment of the CCA

The enactment of the Consumer Credit law is to ensure fair treatment of borrowers. Currently, there are multiple laws governing consumer credit activities and there are fragmented regulatory and supervisory frameworks and varying level of protection accorded to consumers.


Fair lending practices
Impose minimum standards of conduct on all consumer credit providers
Policy coherence & coordination
Setting up of a Council for Consumer Credit, an inter-agency platform in Phase I & II
Phased Approach

The transformation of the consumer credit regulatory landscape will be completed in phases. This approach was taken to facilitate a smooth transition and minimise any unintended disruptions in the consumer credit industry while enabling the CCOB to enhance its capability and capacity to assume greater responsibilities over time. The phased approach is further explained below:

Phase 1 (upon enactment of CCA; 2025-2027)
  • Existing ministries and agencies i.e., BNM, SC, SKM, KPDNHEP, and KPKT will continue to serve as the RSAs for their respective sectors under Phase 1;
  • The CCOB will be the competent authority overseeing credit providers and credit service providers that are currently unregulated by any authority;
  • The CCA will have enabling provisions for the CCOB to issue guidelines which could be similarly adopted and enforced by the relevant RSAs on its regulated entities;
  • The Hire-Purchase Act (HPA) will be amended or repealed with the relevant provisions to be included into the CCA. KPDNHEP, as a RSA, will continue to oversee the activities of non-bank hire-purchase companies, repossession agents and credit sales providers;
  • The CCA will facilitate Islamic credit business by non-bank credit providers by including provisions to ensure that such credit providers and its product offerings comply with Shariah principles. KPKT’s regulatory ambit will be expanded to include Islamic financing activities and Islamic pawnbroking activities which are not governed under the Islamic Financial Services Act (Act 759) and the Cooperative Societies Act 1993 (Act 502), while KPDNHEP will oversee non-bank Islamic hire-purchase business.
  • The existing moneylenders’ and pawnbrokers’ licences obtained under the Moneylenders Act and Pawnbrokers Act respectively, as well as permits issued to individuals for repossession of goods under Hire-Purchase Act, will remain valid with the enactment of the CCA in Phase 1; and
  • Consumer credit activities by banks will remain under the oversight of BNM.

Phase 2 (2028-2030)
The regulatory functions in respect of consumer credit activities under KPDNHEP and KPKT will be transferred to CCOB, while BNM, SC and SKM will continue to act as the RSAs for the entities under their respective purview. The Moneylenders Act, Pawnbrokers Act as well as provisions relating to credit sales transactions under the Consumer Protection Act will be repealed and all relevant provisions will be retained and subsumed under the amended CCA.

Phase 3 (2031 onwards)
It is envisioned that in the next 5 to 10 years, the financial industry’s regulatory architecture in Malaysia will evolve towards the Twin Peaks model of financial regulation; whereby it separates financial regulation into two broad functions: market conduct regulation (which includes credit consumer protection) and prudential regulation.

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