The Agency would provide individuals assistance in restructuring debts relating to household loans, hire purchase, credit card and personal loans from institutions functioning under the purview of the Bank Negara. The arrangement is expected to be a prompt and cost-effective means of debt settlement based on the repayment plan between creditors and the debtor without intervention of courts.
The agency will also provide credit counselling and advice on financial management to individual consumers. In the USA, recent initiatives reportedly imply that, since October last year, debt-trapped consumers seeking bankruptcy protection have been forced to undergo credit counseling and financial training.