CREDIT INTEREST RATE SET AT 15PC
Move will help low-income families buy household items, says minister
THE government has set the maximum interest rate for credit sales transactions at 15 per cent annually, effective Jan 1 next year, the Domestic Trade, Cooperatives and Consumerism Ministry said.
Its minister, Datuk Seri Hamzah Zainudin, told the Dewan Rakyat yesterday that the ministry had amended the Consumer Protection Act 1999 and enacted the Consumer Protec- tion (Credit Sales) Regulations 2017 to address high interest rates in credit transactions.
“Based on consultation sessions with the industry, we have found that current interest rates could go as high as 35 per cent per year.
“Through the amendment, credit service providers may no longer impose interest rates above 15 per cent per year.
“We hope the decrease in interest rates will help people, es- pecially the underprivileged, buy household items for their families,” he said in a reply to a question from Datuk Hasbullah Osman (BN-Gerik).
Hasbullah had asked about the ministry’s efforts in tackling high interest rates affecting low-income consumers.
Hazmah said any credit service provider that violated the new regulations would face penalties.
“Corporate bodies would face a fine of not more than RM100,000, while repeat offenders would face a fine of not more than RM200,000.
“Individuals, or those who are not corporate bodies, would face a fine of not more than RM50,000, or jail time of not more than three years, or both, while repeat offenders would face a fine of not more than RM100,000, or imprisonment of not more than five years, or both.”