CTOS appeals RM200,000 judgment for inaccurate rating
Published on: Tuesday, March 12, 2024
By: FMT
The High Court in Kuala Lumpur yesterday ruled that CTOS Data Systems is a repository of credit information with no power under the Credit Reporting Agencies Act 2010 to formulate its own credit score.
PETALING JAYA: CTOS Data Systems Sdn Bhd (CTOS) has filed an appeal against a High Court verdict ordering the firm to pay a businesswoman RM200,000 for an inaccurate credit rating.
In a Bursa filing yesterday, CTOS said its board of directors was advised that there was basis for an appeal.
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“(The company) consequently lodged a notice of appeal to the Court of Appeal.
“No material losses (are) anticipated as a result of this matter and no provisions shall be required,” it said.
Justice Akhtar Tahir yesterday said the credit rating agency was a repository of credit information and had no power under the Credit Reporting Agencies Act 2010 (CRAA) to formulate its own credit score, New Straits Times reported.
“CTOS’s main role is to collect, record, hold and store the information received. The company is also empowered to disseminate the information to its subscribers, and this includes financial institutions.
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“However, by formulating a credit score, CTOS has gone beyond its statutory functions,” he said.
He ordered CTOS to pay RM200,000 in general damages to Suriati Yusof, 43, who owns a resort in Pulau Perhentian, for providing an inaccurate credit rating resulting in her subsequent rejection for a car loan. She was also awarded RM50,000 in costs.
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Suriati had sued CTOS for negligence and breach of fiduciary duty in misrepresenting her credit rating, which she claimed led to personal and business losses, as well as damage to her reputation.
Akhtar said the CRAA existed so that credit agencies could provide accurate information to financial agencies.
He said it was CTOS’s duty to do so, but that it chose to ignore communication that it was not providing accurate information on the plaintiff.
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