Kuala Lumpur, July 2024: In a landmark decision, CTOS Data Systems Sdn. Bhd. (CTOS) has successfully overturned the High Court’s previous ruling, which questioned the company’s legal authority to formulate credit scores. The Court of Appeal’s ruling not only reaffirms CTOS’s commitment to transparency and integrity but also marks a significant milestone in its mission to deliver reliable and comprehensive credit reporting services to Malaysians.
The Court of Appeal, after hearing the submissions from both parties on 9th July 2024, decided in favor of CTOS, awarding costs of RM65,000.00. The court unanimously concluded that:
- The Plaintiff did not establish a case of defamation, negligence, or breach of statutory duties against CTOS.
- Credit Reporting Agencies are not subject to a duty of care under common law.
- Credit Reporting Agencies can formulate and publish credit scores as part of their credit reporting activities under the Credit Reporting Agencies Act.
This ruling nullifies the Kuala Lumpur High Court’s judgment dated 7th February 2024 and dismisses the Plaintiff’s Cross Appeal.
Erick Hamburger, CTOS Digital Group Chief Executive Officer, expressed his satisfaction with the outcome, stating, “This positive decision is very encouraging as we continue enhancing our products and services offering that improves credit risk management, facilitates financial inclusion, and promotes responsible lending and borrowing to prevent over-indebtedness among Malaysians.”
Also Read: Insights from Matt Tindale, Head of Enterprise, APAC at LinkedIn Marketing Solutions
Looking forward, CTOS remains dedicated to its core pillars of Credibility, Transparency, Opportunity, and Stability. By ensuring the highest standards of accuracy and integrity, fostering transparency and accountability, and empowering individuals and businesses, CTOS continues to build trust and promote financial health. Hamburger emphasized, “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.”
With this significant legal victory, CTOS is poised to further enhance its role in the financial ecosystem, providing essential tools for credit risk management and fostering an environment of responsible lending and borrowing across Malaysia.
About CTOS Data System SDN BHD
CTOS, Malaysia’s largest private credit reporting agency, is a registered Credit Reporting Agency under the Credit Reporting Agencies Act 2010. Established in 1990, CTOS has over 30 years of experience in aiding credit grantors make better credit decisions. CTOS utilises information from its users and the public domain to support informed decisions and facilitate fact-based risk management when providing credit extension. CTOS delivers a complete portfolio of credit reports and value-added services and is widely used by the country’s banking and financial institutions, insurance companies, large corporations, legal firms, businesses and state and statutory bodies.
Legal Disclaimer: The Editor provides this news content "as is," without any warranty of any kind. We disclaim all responsibility and liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. For any complaints or copyright concerns regarding this article, please contact the author mentioned above.
