Johari: Private credit reporting agencies cannot blacklist defaulters

KUALA LUMPUR: Private Credit Reporting Agencies (APK), including CTOS Data Systems Sdn Bhd (CTOS), does not have the right to blacklist any individual who does not comply with the obligations of credit financing.
Deputy Finance Minister Datuk Johari Abdul Ghani (pix) said the perception of some people that these agencies have the right to blacklist defaulters was incorrect.
"The preparation of credit reports of individuals or companies conducted by the Central Credit Reference Information System (CCRIS), CTOS and other APKs does not involve any opinion regarding information in a credit facility report.
"A credit report is made available upon request of financial institutions to assess the reliability of customers who were to be given credit facility," he said in reply to questions by V.Sivakumar (DAP-Batu Gajah) on the issue at the Dewan Rakyat sitting today.
Johari said the credit assessment carried out not only focused on the credit facility report but would also take into account the internal guidelines and internal credit scoring.
The deputy minister said credit information collection and disclosure by CCRIS and CTOS was permissible under Section 47 of Central Bank of Malaysia Act 2009 and Section 11 of the Credit Reporting Agencies Act 2010 (Act 710).
He added that so far there were seven registered APK in Malaysia, namely CTOS, Credit Bureau Malaysia Sdn Bhd, RAM Credit Information Sdn Bhd, Dun & Bradstreet (D&B) Malaysia Sdn Bhd, FIS Data Reference Sdn Bhd, BASIS Corporation and MCDS Network and Services Sdn Bhd.
To a supplementary question by Sivakumar on allegation that there were credit facility collection agents appointed by financial institutions who intimidated borrowers to make payments, Johari said borrowers could lodge a report to the police or Bank Negara on the matter.
"Those appointed agents are only allowed to negotiate and collect the credit from the borrowers, and not to intimidate or being rude to them," he said. — Bernama