: The Ministry of Domestic Trade, Cooperatives and Consumerism will introduce a formula for calculating uniform and fair late payment charges for borrowers of credit facility provider companies.
Minister Datuk Seri Hamzah Zainudin said the charges would be subject to inflation rates and current financial policies.
"At present, borrowers are imposed late payment charges, regardless of whether they are late by one day, one month or two months. These charges range from RM10 to RM40," he said during the Ministers' Question Time in the Dewan Rakyat today.
He was replying to a question from Datuk Noor Ehsanuddin Mohd Harun Narrashid (BN-Kota Tinggi) on the measures taken by the ministry to protect borrowers who have to pay late payment charges imposed by credit facility provider companies when they fail to make payments within the stipulated time.
Hamzah said the ministry had met with several industry players to discuss a formula for calculating the late payment charges which would benefit both parties.
Replying to a supplementary question, from Datuk Dr Nik Mazian Nik Mohamad (PAS-Pasir Puteh), on the usury imposed on borrowers for late payment to these companies, Hamzah said the ministry was in the process of working out other ways of resolving the matter.
He said this included adopting the Syariah-compliant financial system practised by banking institutions.