Everything You Should Know About CTOS
Many people only have a rough idea of what CCRIS and CTOS is. Most do not know how it works. In
this second of a 2-part series, everything that you need to know about CTOS is explained. This
includes how to make it work in your favour when making a loan application. CCRIS was explained in
What is CTOS?
CTOS is a lead information system widely used by the majority of the country’s Financial Institutions,
Commercial Companies & Businesses, Legal Firms and other institutions. Unlike CCRIS, which is
under Bank Negara Malaysia (BNM), CTOS is owned and managed by a Malaysian company, in
business for over 20 years, collating information on Individuals and Companies from various sources
found in the public domain.
The information is formatted into an electronic database which provides for an easy, quick and
efficient checking process for loan applications, trade and business credits and for decision making
by credit grantors and lenders.
The sources of CTOS information include amongst others:
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Legal notices in Newspapers
Searches at the Companies Commission of Malaysia (CCM) or Suruhanjaya Syarikat
Malaysia (SSM)
Government Gazettes & Publications
Searches at the Malaysia Department of Insolvency (MDI) or Jabatan Insolvensi Malaysia
National Registration Department (NRD) or Jabatan Pendaftaran Negara (JPN)
Searches at the Registrar of Societies (ROS)
Contact information provided by creditors / litigators / trade referees
Information voluntarily provided by subjects themselves
Only CTOS subscribers can access the CTOS Information Database.
What CTOS is Not?
CTOS is not a blacklist. It does not provide opinions, ratings, rankings or recommendations on an
Individual’s or Company’s credit worthiness. All lending policies, loan approvals and decision making
are determined by the lenders or credit grantors themselves, not CTOS.
Another misconception about CTOS is that it does not update its records. It is important to note,
CTOS is like an electronic library of historical information captured from publicly available sources
and archive as such. Updates are carried out by CTOS whenever it captures case settlements from
parties involved namely the plaintiff, defendants, their lawyers or new information from related
source documents.
What categories of information does a CTOS Report contain?
A CTOS report is split into 5 sections containing different categories of information:
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Section A – Identity Verification
Helps to identify and verify the subject’s by Identity Number, Full Name, Company or Business
Registration Number. This section helps to detect and prevent fraud and identity theft.
Section B – Internal List / Group Exposure
This is for the subscriber’s own information and reference. It relates to their own business
experiences with their customers. Information here is only open to the subscriber’s own personnel.
No other subscribers have access to this information
Section C – Directorships and Business Interests
Record a subject’s directorships and shareholdings in Malaysian incorporated companies and
businesses.
Banks use this section to help verify the true nature of a subject’s ostensible income, especially for
company shareholders and business owners.
Section D – Legal Actions Against
Record the legal information. It helps one to have a better insight and understanding on a subject’s
background, history and business experience.
Banks use this section to look out for bankruptcy information, legal actions, and case statuses.
Section E – Trade Referees and Subject Comments
Trade Referees – Listed here is the name of Trade Referees. They are CTOS subscribers who may
want to share their business experiences known as “Trade References” on subjects and their
companies or businesses that they have dealt with. The trade references are the subscribers’ own
information not CTOS. Therefore, communication of the trade reference is done directly via email
between the trade referee and the inquirer.
Subject’s Comments – This is a facility provided by CTOS to allow parties involved in a case to
present their “side of the story”. Comments should be objective and confined only to the case.
How long are the records kept?
Unlike CCRIS where records are kept only for 12 months, CTOS records are kept indefinitely as an
historical archive of one’s history and experiences.
Will CTOS update the information in their database?
Yes, the CTOS database is updated with new information collated from the various sources on a daily
basis. Information contained in Section C is periodically updated to reflect the latest directorship and
shareholdings of the subject at that point in time.
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Information in Section D – As a rule, in this section, information is never deleted except in cases of (1)
Fraud OR (2) Mistake. The relevant supporting documents must be provided to CTOS for their checks
and verification before a deletion can take place.
I have settled a legal action against me / been discharged of Bankruptcy. But banks still
reject my loan applications, citing “CTOS issue”. What can I do?
Because of how CTOS operates, if you have had legal actions taken against you, it becomes your
responsibility to provide updates to them, especially if the outcomes are in your favour. This can be
done by contacting CTOS service centre.
I have been a victim of identity theft, which has resulted in many unjustified lawsuits
against me. The cases have not been resolved. What can I do?
If you are able to provide proof of fraud (eg. police reports, letters of support from relevant
banks/lawyers/litigators), CTOS will remove the relevant records from their system after verification.
You may also provide subjective comments in defence of yourself to be added to your CTOS file. This
ensures that all enquirers to your CTOS file will see your explanations. These will appear in Section E
of your file.
I was discharged as a bankrupt / paid off my creditors 6 months ago and have updated
CTOS regarding my case? Why do banks still reject my loan applications, citing “CTOS
issue”?
Most likely, the issue is not with CTOS not updating your records, but with the bank’s internal credit
approval policies.
Most banks have internal policies that are not friendly to past delinquents. The more time that has
passed between your last delinquency versus your loan application, the higher the chance of
approval. A general rule is to have at least 1-2 years in between.
I do not owe any banks any money. And to my knowledge, I have never been sued. How
can it be that I have “CTOS issues”?
Subscribers to CTOS are able to provide their contact details as “Trade Referees” for a subject. This
appears in Section E of the CTOS report. As explained above, trade referees may want to share their
business experiences known as “trade references”. It is likely the trade referee could have dealings
with you and/or your company or business.
Telco and utility companies have been known to put themselves as trade referees for subjects who
have long-standing uncollectible debts with them, even for small amounts.
In such instances, it’s advisable for you to contact the CTOS Service Centre to conduct a CTOS Self
Check Report. From the report, you will know whether such is the case.
Ctos.com.my