PETALING JAYA: A slew of new laws that will better protect consumers are set to come into effect next year.
According to the Federal Gazette, the Online Safety Act will come into effect on Jan 1.
The amendments to the Hire Purchase Act 1967, which abolishes Rule 78 in personal financing, is also expected to come into effect next year.
With the amendments, the long-criticised flat rate and Rule 78 interest methods will be replaced with the reducing balance system and effective interest rate calculation.
Under the old rule, borrowers effectively paid more interest at the start of the loan, leaving them with little benefit even if they settled it early.
The new reducing balance method, however, calculates interest only on the outstanding loan amount, making repayment fairer and more transparent.
Consumer groups ar
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