CTOS chief executive officer Erick Hamburger called the latest court decision “very encouraging” as the agency continues enhancing its products and service offerings.
PETALING JAYA: CTOS Digital Bhd
’s share price rose 5% after the Court of Appeal ruled that credit reporting agencies like CTOS Data Systems Sdn Bhd (CDS) may “formulate and publish’’ credit scores.
CDS, a subsidiary of CTOS, yesterday won in its appeal against the High Court’s earlier decision that required the former to pay resort owner Suriati Mohd Yusof RM200,000 over inaccurate credit rating.
In March, the High Court said that CDS is only allowed to be a repository of the credit information for its subscribers.
By formulating a credit score, the agency has gone beyond its statutory functions, the court ruled.
Following this, CDS appealed in the Court of Appeal, which was heard on July 9 along with the cross appeal.
“After hearing the submissions from both parties, the Court of Appeal had allowed the appeal by CDS with costs of RM65,000,” CTOS said in a filing with Bursa Malaysia.
The three-member bench chaired by Justice Lee Swee Seng unanimously ruled that credit reporting agencies do not owe a duty of care in common law.
Credit reporting agencies also may formulate and publish credit scores as part of their business of credit reporting pursuant to the provisions of the Credit Reporting Agencies Act.
In addition, the Court of Appeal ruled that the plaintiff, Suriati, had not made out a case in defamation, negligence or breach of statutory duties against CDS.
“The Court of Appeal had further dismissed the plaintiff’s cross appeal,” CTOS said in a statement.
For context, Suriati initiated the litigation against CDS after she discovered in 2019 that her application for a car loan was rejected as a result of a negative credit report issued by the defendant, CDS.
Suriati contended that the data collated and kept by CDS was inaccurate and false, thus resulting in her negative credit rating.
Suriati further said that CDS’ information disclosing that she was indebted to a company called WEBE was inaccurate as she had denied owing them any money.
CTOS chief executive officer Erick Hamburger called the latest court decision “very encouraging” as the agency continues enhancing its products and service offerings.
“This decision is a significant step in CTOS’ journey to offer Malaysians a comprehensive system for credit reporting.
“CTOS will continue empowering consumers and businesses with the tools and information needed to make informed financial decisions confidently.
“Looking to the future, CTOS remains steadfast in upholding its core pillars of Credibility, Transparency, Opportunity and Stability,” said Hamburger.
Established in 1990, CTOS is Malaysia’s largest private credit reporting agency.
CTOS collects information from various sources, including banks, financial institutions and other sources such as legal firms to create a credit report.
The report is then used by financial institutions to gauge an individual or a company’s creditworthiness and repayment capabilities for loans and other financial products.
CTOS’ share price closed 5% or seven sen higher at RM1.45 yesterday, with 12.97 million shares changing hands.
