‘Govt cannot prevent CTOS from gathering credit data’

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KUALA LUMPUR: The government has no authority to prevent CTOS Data System Sdn Bhd from running its business of gathering credit data as the company is properly registered under the Companies Commission of Malaysia (CCM).

Deputy Finance Minister Datuk Ahmad Maslan said the setting up of the private credit reference agency was aimed at providing comprehensive coverage and content based on information gained from public sources such as newspapers, government and CCM gazettes.

He said the sharing of data through CTOS also assisted and speeded up loan applications, improved borrowers access to loans and reduced the cost of borrowing.

“There is no issue on the invasion of individual privacy through the use of CTOS as all information are gathered from public sources,” he said in reply to Mohamed Hanipa Maidin (PAS-Sepang) during the question and answer session at the Dewan Rakyat here yesterday.  Mohamed Hanipa had queried as to whether the government was aware that CTOS’ activities involved the invasion of privacy of individuals.

Ahmad added that CTOS and other credit reference companies were not allowed to charge individuals for rectifying or updating their credit data.

He said the company must also remove an individual’s data within two years of their status being cleared.

“The company must further obtain prior permission from an individual before providing any data to a bank.

“If the individual refuses such permission, they must respect it and refrain from doing so as stated in the law,” he said. — Bernama