In Malaysia, whenever you apply for any type of loan from a bank, they will conduct a mandatory check on your credit history, not only within their own bank but in all the financial institutions, Commercial companies and businesses within the CTOS database.
Another common database that is used in credit history investigations is CCRIS, which is managed and run by Bank Negara. CTOS, however, is very different from CCRIS because it is run by a private company. They spend lots of time and resources gathering publicly available credit data and enter them into their system. In order to access all the information, you have to register for a paid account on their website. Among their source of information are.
• Companies Commission of Malaysia (CCM)
• Notices in Newspapers by lawyers
• Data from the Malaysia Department of Insolvency (MDI)
• Creditors / litigators / trade referees who provide thorough information
• Government Gazettes & Publications
• National Registration Department (NRD)
• The Registrar of Societies (ROS)
• Voluntary information provided by lenders themselves
CTOS not only contains credit information, but also information on your summonses and legal charges, meaning it will record any of yours or your business run-ins with the law.
CTOS provides a 5 section report to loan officers on the individual being investigated.
Section 1 – Personal information, IC numbers, company name and business registration number to verify that there is no fraudulent identity theft.
Section 2 – Internal Group Associations, which are only visible as the financial interactions the subscriber has with person investigated.
Section 3 – Record or all company directorships and business holdings the subject has.
Section 4 – Records of any legal action the subject is taking against another party, or any legal actions the subject has been involved in, including bankruptcy and ongoing cases.
Section 5 – Defence by the subjects under investigation against any allegations are posted here as well as certain special information they may want to share about themselves or others.
If in any case the bank cites ‘CTOS’ issues when your loan is disapproved but you have settled your bankruptcy or high debt status, you have to contact CTOS to update your information and provide the relevant proof.
In conclusion, it is highly advisable to ensure you have a clean CTOS profile before attempting to borrow any more from the banks.