I am a victim of CTOS!

Salam...

MALAYSIA, Tolooooong! Nama aku sudah kena "blacklist" dan tercatat di dalam database CTOS!.

Am I really a victim of CTOS or just a victim of my own stupidity?

In 1994, I had become a guarantor for a personal loan amounting to RM10,000 made by a woman who is also my friend’s wife. She was a UMBC bank’s staff with a steady income. They had a problem with their marriage and divorced a year later. She had taken the VSS and since then the loan account was not updated. Bank Rakyat had filed claim and court order but the culprit refused to pay.

The impact

Since, I was her guarantor, the blame of not paying the loan is on me. As a result, my name was submitted (by Bank Rakyat) to CTOS and updated as bad pay master! I could not apply for any personal loans, car loans (hire purchase), housing loans and even credit cards with any banks and Credit companies.

Now, it’s also jeopardizing my job! Under my company’s policy it’s called “pecuniary harassment” and I could be dismissed immediately.

A bit about CTOS

It’s a company that gathers and collates credit information data on person’s through various channels and stored the information in it’s database for retrieval by the credit grantors (banks and Credit companies that have subscribed for its service). The credit grantors shall use the information to make decisions prior to giving approval for any credit facility applied.

Some statements in the CTOS FAQs:

* The information presented in CTOS are only meant to be information leads. Credit grantors examine and decide if these leads are of such material nature as to have such a significant impact that a further probe is warranted.

* When further probes are necessary, credit grantors check with the relevant parties like the plaintiff, the solicitors or even the subject themselves of the case’s current status, the nature and origin and cause of such actions etc.

* Credit grantors then make their own decisions accordingly in compliance to their own business strategies and policies.

Well, how many of the credit grantors will check/ask the relevant parties (like the plaintiff, the solicitors or even the subject) before making the decision to reject the credit applications? Some of them just decline the requests without giving any reasons whatsoever!

Here are another statements from CTOS for those who had settled their credit issues:

* First and foremost, one should remember that the CTOS system is only a lead information system an archive. It has never been an objective to confirm or convey the current “status” of cases.

* This limitation has been clearly made known to CTOS users. Case status determination is determined on a when needed basis by credit grantors. They will make verification with the relevant parties including the subject concerned.

* CTOS has however received many request from debtors and defendants to reflect the settlement of the cases in the databases. CTOS has acceded to these requests. In each instance, however, the debtors or defendants must provide such documentary proof evidencing the case settlement or conclusion. On receipt of these documents, CTOS will verify these documents and insert the relevant remark to the case.

CTOS has made people’s life miserable but reiterated that the information archived in its database shall not be deleted! Some people had even commented and published in newspapers that in order to delete their records in the CTOS database they need to pay circa RM1,000!

Another statements that make me sick:

The question:

"I am in the database, does it mean that I shall never be able to get any credit facilities?"

The answers:

* Not at all. In fact, there are numerous individuals and companies who have records in the database that continue to enjoy credit facilities. For that matter, consider this, many large corporations including banks and multinational and listed companies have records in the CTOS database.

* Does it mean that they are not credit worthy or unstable? Certainly not.

* The CTOS database is nothing more than factual historical information. It provides a starting point for a credit grantor’s probe, if they so desire, to find out more about their potential or existing customer, evaluate the situation and assess if the risks is still acceptable to them.

* The approval of any credit facilities is not based on a single criterion but on a set of lending/credit criteria set out by the credit grantors.

Wow! Excellent explanations! However, is there anybody in CTOS who compiles all records on rejected credit facility applications as a result of the applicants names are in its database. What it provided recently are the names of some top politicians and high ranked government officers that have their names archived and their credit facilities had been approved.

There was no name reflecting a personnel like me who is a guarantor of an irresponsible borrower that has his/her personal loan or credit card application been approved. Is it fair?

I was stupid agreed to sign as the guarantor but I am just a human being who care about other people’s financial problem.

I do hope that the person who took the loan where I was the guarantor to contact Bank Rakyat immediately after reading this post, and start re-servicing the non performing loan. I will publish her name and some contact information in my later post if I have no other choice.

In the mean time, I need to reassure my employer of my credit worthiness and hope I could secure my job.

Sekian.