Credit Reporting Agencies in Malaysia

The Credit Reporting Agencies Bill 2009 introduced and tabled at The Dewan Rakyat recently by Deputy Finance Minister Datuk Dr. Awang Adek Hussin is scheduled to be debated and passed during the current meeting of Parliament.

According to a report by New Straits Times, when it becomes law, private credit reference agencies such as Credit Tip Off Service Sdn Bhd (CTOS) will be controlled through registration and supervised by a registrar.

The bill will complement the Personal Data Protection Bill, which aims to protect and regulate the use of private data. The bill also seeks to ensure the credit reporting agencies and their officers will be responsible for compiling data and updating them. Often, this failure had resulted in many people, who had settled their debts or loans, remaining on the blacklist of banks.

However, credit agencies have to get written permission from customers when they require such information from the customer concerned for the first time through a notice. The notice should inform the customer to whom the information would be given to and if it is obligatory or voluntary for any of the information to be disclosed by the customer.

The agencies also cannot disclose information unless it has obtained permission from the customer. However, there is an exemption and information can be disclosed to prevent crime or when it is provided for under the law.