Inadequacy of consumer protections from unfair contract terms in Musharakah Mutanaqisah home financing in Malaysia

Musharakah Mutanaqisah is one of the Islamic home financing products which has gained popular demand from the public in Malaysia. However, the terms and conditions of legal documentation of Musharakah Mutanaqisah Home Financing which were usually prepared by solicitors for Islamic financing institut...

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Main Authors:	Mat Ali, Syuhaeda, Hassan, Rusni, Othman, Ahmad Azam
Format:	Article
Language:	English
Published:	IIUM Press 2017
Subjects:	HG3368 Islamic Banking and Finance
Online Access:	http://irep.iium.edu.my/61327/ http://irep.iium.edu.my/61327/ http://irep.iium.edu.my/61327/1/61327_Inadequacy%20of%20consumer%20protections.pdf

id	iium-61327
recordtype	eprints
spelling	iium-613272018-01-12T07:33:23Z http://irep.iium.edu.my/61327/ Inadequacy of consumer protections from unfair contract terms in Musharakah Mutanaqisah home financing in Malaysia Mat Ali, Syuhaeda Hassan, Rusni Othman, Ahmad Azam HG3368 Islamic Banking and Finance Musharakah Mutanaqisah is one of the Islamic home financing products which has gained popular demand from the public in Malaysia. However, the terms and conditions of legal documentation of Musharakah Mutanaqisah Home Financing which were usually prepared by solicitors for Islamic financing institutions (“IFIs”) may have affected the welfare of consumers especially when most of the terms and conditions of legal documentations favoured the IFIs. In these circumstances, the consumers have no choice but to abide by the terms stipulated by the IFIs.This paper examines the adequacy of present legislation in Malaysia namely Islamic Financial Services Act 2013, Financial Services Act 2013, Shariah Standard and Guidelines: Prohibited Business Conduct policy, Consumer Protection Act 1999, Consumer Protection (Amendment) Act 2010 and the Contracts Act 1950 relating to unfair terms of contract in Musharakah Mutanaqisah Home Financing. The methodology adopted in this paper is statutory analysis whereby the relevant legislation are analysed. The analysis reveals that the legislation are not sufficient to regulate unfair terms of contract in Musharakah Mutanaqisah Home Financing in Malaysia. To ensure the protection of the consumers in Musharakah Mutanaqisah Home Financing, this paper recommends the present legislation, particularly Consumer Protection Act 1999 and Contracts Act 1950 be reformed. Musharakah Mutanaqisah Home Financing, reform, legislation, standard form of contract. IIUM Press 2017-12-31 Article PeerReviewed application/pdf en http://irep.iium.edu.my/61327/1/61327_Inadequacy%20of%20consumer%20protections.pdf Mat Ali, Syuhaeda and Hassan, Rusni and Othman, Ahmad Azam (2017) Inadequacy of consumer protections from unfair contract terms in Musharakah Mutanaqisah home financing in Malaysia. Journal of Islamic Finance, 6 (Special Issue). pp. 231-241. ISSN 2289-2109 E-ISSN 2289-2117 http://journals.iium.edu.my/iiibf-journal/index.php/jif/article/view/268
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG3368 Islamic Banking and Finance
spellingShingle	HG3368 Islamic Banking and Finance Mat Ali, Syuhaeda Hassan, Rusni Othman, Ahmad Azam Inadequacy of consumer protections from unfair contract terms in Musharakah Mutanaqisah home financing in Malaysia
description	Musharakah Mutanaqisah is one of the Islamic home financing products which has gained popular demand from the public in Malaysia. However, the terms and conditions of legal documentation of Musharakah Mutanaqisah Home Financing which were usually prepared by solicitors for Islamic financing institutions (“IFIs”) may have affected the welfare of consumers especially when most of the terms and conditions of legal documentations favoured the IFIs. In these circumstances, the consumers have no choice but to abide by the terms stipulated by the IFIs.This paper examines the adequacy of present legislation in Malaysia namely Islamic Financial Services Act 2013, Financial Services Act 2013, Shariah Standard and Guidelines: Prohibited Business Conduct policy, Consumer Protection Act 1999, Consumer Protection (Amendment) Act 2010 and the Contracts Act 1950 relating to unfair terms of contract in Musharakah Mutanaqisah Home Financing. The methodology adopted in this paper is statutory analysis whereby the relevant legislation are analysed. The analysis reveals that the legislation are not sufficient to regulate unfair terms of contract in Musharakah Mutanaqisah Home Financing in Malaysia. To ensure the protection of the consumers in Musharakah Mutanaqisah Home Financing, this paper recommends the present legislation, particularly Consumer Protection Act 1999 and Contracts Act 1950 be reformed. Musharakah Mutanaqisah Home Financing, reform, legislation, standard form of contract.
format	Article
author	Mat Ali, Syuhaeda Hassan, Rusni Othman, Ahmad Azam
author_facet	Mat Ali, Syuhaeda Hassan, Rusni Othman, Ahmad Azam
author_sort	Mat Ali, Syuhaeda
title	Inadequacy of consumer protections from unfair contract terms in Musharakah Mutanaqisah home financing in Malaysia
title_short	Inadequacy of consumer protections from unfair contract terms in Musharakah Mutanaqisah home financing in Malaysia
title_full	Inadequacy of consumer protections from unfair contract terms in Musharakah Mutanaqisah home financing in Malaysia
title_fullStr	Inadequacy of consumer protections from unfair contract terms in Musharakah Mutanaqisah home financing in Malaysia
title_full_unstemmed	Inadequacy of consumer protections from unfair contract terms in Musharakah Mutanaqisah home financing in Malaysia
title_sort	inadequacy of consumer protections from unfair contract terms in musharakah mutanaqisah home financing in malaysia
publisher	IIUM Press
publishDate	2017
url	http://irep.iium.edu.my/61327/ http://irep.iium.edu.my/61327/ http://irep.iium.edu.my/61327/1/61327_Inadequacy%20of%20consumer%20protections.pdf
first_indexed	2023-09-18T21:26:59Z
last_indexed	2023-09-18T21:26:59Z
_version_	1777412257058127872

Inadequacy of consumer protections from unfair contract terms in Musharakah Mutanaqisah home financing in Malaysia

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