Hisbah as a consumer protection institution in Malaysia: A special reference to Islamic consumer credit industry

Hisbah is one of the distinguished institutions that had emerged since the early days of the Islamic empire. Based on its cardinal duty to enjoin good and prohibit evil, over time, its functions gradually expanded, and its responsibilities increasingly grew. In light of the contemporary trend in est...

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Bibliographic Details
Published in:Emerging Issues in Islamic Finance Law and Practice in Malaysia
Main Author: Hassan R.; Ilias I.I.
Format: Book chapter
Language:English
Published: Emerald Group Publishing Ltd. 2019
Online Access:https://www.scopus.com/inward/record.uri?eid=2-s2.0-85143320426&partnerID=40&md5=fba3985e432d0c130bf4cc9822c76060
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Summary:Hisbah is one of the distinguished institutions that had emerged since the early days of the Islamic empire. Based on its cardinal duty to enjoin good and prohibit evil, over time, its functions gradually expanded, and its responsibilities increasingly grew. In light of the contemporary trend in establishing institutional framework for consumer protection, entrusting an agency with multifarious tasks may not be the best and effective way in handling consumer protection issues. Thus, this chapter attempts to explore the new paradigm of hisbah as a consumer protection institution in Malaysia with a special reference to the Islamic consumer credit industry. While utilising the doctrinal legal research methodology, relevant sources of law have been examined and analysed. This research finds that the classical hisbah institution provides a good reference point in establishing regulatory agency and dispute management body. Nevertheless, some modifications are required to remain relevant especially in terms of specialisation of role and function. Likewise, it is viewed that adjustment of the hisbah institution is also necessary regarding the characteristic of the muhtasib (ombudsman). © 2019 by Emerald Publishing Limited. All rights reserved.
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