Govt to table act to protect those who borrow on credit

KUALA LUMPUR: Plans are afoot by the government to table a Consumer Credit Protection Act by next year to protect those who borrow on credit.
Domestic Trade Co-operatives and Consumerism Minister Datuk Seri Hamzah Zainudin said his ministry was holding talks with Bank Negara Malaysia and other related government agencies to discuss the form the bill should take.
"It will be tabled next year once we have dealt with all the necessary issues," he said.
He said this will also include the amount a person must pay once he decides to buy goods via credit, adding that the purchaser will know by the end of the payment period how much he has paid and this will allow him to decide if wants to buy the item.
Hamzah said the interest rate will be fixed by the ministry to ensure that consumers will not be taken advantage off.
"Those who are given the licence to sell their goods via credit will have to follow the rules and regulations that will be set by the Act," he said at a press conference after presenting excellent service awards to 107 employees of the Cooperative Commission of Malaysia (SKM).
Hamzah said the price of oil at local petrol stations may go up if the world oil prices go up but this will depend on what is the prevailing rate based on the Automatic Pricing Mechanism (APM) when the price is set every Wednesday.
He pointed out that locally based oil companies sell their oil based on the world price therefore any increase will have an affect on local petrol prices.
On whether any petrol dealers have applied to sell their fuel at a discounted rate, Hamzah said his ministry had not received any application yet.
"If a dealer wishes to sell his fuel at a discounted rate there is a criteria that they must fulfill because the ministry does not want consumers to feel cheated or feel that it was just a gimmick to attract them to the dealer," he said.
He said no dealer or company can say that they are planning to provide discounted petrol, they must clearly set out what their plans are before the ministry approves it.
He said for example they must state what type of oil will be discounted, will it be for two hours or only for a set amount or for the first 100 or 1,000 customers.
Hamzah said only after meeting this criteria will they be allowed to carry out their promotional activity.