HOW TO HELP CTOS BLACKLIST APPLICANT TO GET LOAN

What is CTOS

While CCRIS is managed and owed by BNM, CTOS on the other hand is a privately owned organisation that has been in existence for the past twenty years. Credit Tip-Off Service is but one of a slew of Credit Reporting Agencies (CRA) regulated under the Ministry of Finance that collects credit information on Malaysian companies and citizens.

Their source of information varies from events reported in newspapers, information from the Companies Commission of Malaysia (CCM), government gazettes and publications, Malaysia Department of Insolvency (MDI), National Registration Department (NRD), Registrar of Societies (ROS) as well as point contacts from creditors, litigators and trade referees. Being a private entity, a CTOS report offers somewhat a second opinion from the information provided by the government linked and controlled CCRIS.

CTOS only gives access to its paying members, whereby for subscribed members, they can check on the applicant’s  trade references repayment records as well as if there are any litigation affecting the applicant. It also allows its members to list their customers who default in payment, with the relevant supporting documents such as invoices and goods delivery note which proves that the goods are received by the customers, but they did not make payment.

CTOS Delinquent

Most of people that encounter CTOS issues are mainly due to blacklist by vendor of service provider such as P1 Wimax, Maxis, Astro, Digi, Celcom or any trade service provider. These are the service provider that subscribes to the CTOS services, to check on the repayment habits of new prospect customers and to decide whether to grant them higher credit limit for their account.

CTOS has made it a requirement that they will only blacklist these customers if the service provider is able to show relevant proof that the customers have been delinquent. Hence, this will avoid conflicts where customers complaint that they have been wrongly blacklisted without solid proof.

Besides that, CTOS points that it is necessary to maintain a good credit history, especially there were issues in the past. Sweeping these issues under the carpet only puts more skeletons in the closet and devalues a CTOS report. Take practical steps like closing unnecessary and unused credit cards as well as accounts and seek good credit counsellors or financial service advisors for advice on how to manage one’s finances.

Alternative key feature of CTOS

In addition to being an avenue to blacklist customers by service provider, one of the key features of CTOS is also that it contains a function to list all open and recently closed litigation cases. It becomes a central depository for all the on-going and litigation cases, whether if the claim is against the individual or against the company. Hence, if the person is a director or a shareholder of the company, if the company is being involved in litigation, it might also be implicated in CTOS.

For this reason, the bank is reluctant to provide financing to these people, as there may be reputation or history of bad record in repayment or claims. Thus, it is always useful to settle all claims as soon as possible, and make sure your name is not used unnecessarily whether in being a guarantor as well as becoming a key person in any company.

CTOS may also contains information on people who has bankruptcy case against them. For these cases, similarly with litigation cases, your loan application most probably will not be approve. Even if you settle the case, if your CTOS case is of the amount more than RM10,000, for most banks, you will need to wait for at least 2 years after settlement, to be able to attempt to apply for any housing loan.

Conclusion

If you have any concerns in terms of your own CTOS scoring, it is best to consult us, and we will try to assist you on how and where to get your scoring report. If you already have the report, but needs assistance on how to get your loan approve, feel free to contact us, and we will advise you accordingly.