Scrutinising the Borrowers’ Protection Under the Moneylenders Act 1951

  • Ibtisam @ Ilyana Ilias Faculty of Law, Universiti Teknologi MARA, Selangor, Malaysia
  • Mastika Nasrun Faculty of Law, Universiti Teknologi MARA, Selangor, Malaysia
  • Nurul Aini Muhamed Faculty of Economics & Muamalat, Universiti Sains Islam Malaysia, Malaysia.
Keywords: Moneylenders, Borrowing, Community credit companies, Consumer credit


One of the significant contributors to credit access in Malaysia is the moneylenders, currently known as community credit companies. The governing law, the Moneylenders Act 1951 (MLA), has undergone a series of amendments with the objective of improving the regulation of the moneylending business as well as enhancing borrowers’ protection. However, rigorous analysis needs to be carried out to evaluate the extent of borrowers’ protection under this law after these amendments. Thus, this research aims to explore and discuss the protection afforded to borrowers under the current Moneylenders Act 1951 (MLA) based on the international framework of financial consumer protection. This research adopted the doctrinal research approach as a systematic means of legal reasoning, analysing the legal propositions and instrumentalisations from both primary and secondary sources. The research employed content analysis approach whereby the relevant laws and regulations were rigorously scrutinised. The results of the study revealed that the legislation has provided various protections to borrowers, which have been classified into three primary categories: licensing regime, fair treatment, and transparency and disclosure. Findings from this study will assist in identifying the loopholes and weaknesses in providing comprehensive legal protection to the borrowers in Malaysia.


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How to Cite
Ilias, I. @ I., Nasrun, M. and Muhamed, N. A. (2022) “Scrutinising the Borrowers’ Protection Under the Moneylenders Act 1951”, Malaysian Journal of Social Sciences and Humanities (MJSSH), 7(7), p. e001621. doi: 10.47405/mjssh.v7i7.1621.