6 July 2007�

KUALA LUMPUR: Banks must now obtain a borrower�s permission before they can acquire information on the person�s financial history from companies which supply credit information

The Finance Ministry said this was one of the interim measures applied by the ministry following a Cabinet directive on Wednesday.�

Another move is to allow individuals to check and update, without charge, the information provided by such companies, according to a statement issued by the ministry yesterday.�

�The Government is very concerned about the individual�s right over his or her personal particulars and the importance of providing accurate and up-to-date information to the clients,� the ministry said. �

A committee chaired by the ministry will be set up to look into amending the law to control these firms, such as the Credit Tip Off Service Sdn Bhd (CTOS).�

Association of Banks in Malaysia chairman Datuk Seri Hamidy Hafiz said he would respond to the ministry's directive today.�

Meanwhile, CTOS chief executive officer Chung Tze Keong said he supported the ministry�s move.�

�I think it is a commendable procedure which would give more transparency to the borrower. At least they will be notified that their records are being checked,� he said.�

On the recommendation to waive the fee for information checks and updates, he said CTOS currently charged a nominal RM3.�

�If the Government wants the charge waived, we shall comply,� said Chung.�

CTOS, which has been operating since 1988, provides information on bankruptcies, civil suits, winding-up of companies, proclamations of sale and directorships. �

Its services are employed by banks and financial institutions.�

�We do not blacklist, deny or approve an individual�s loan. We are merely a source of reference � nothing more,� Chung reiterated.�

In Kota Baru, Deputy Minister in the Prime Minister�s Department Datuk M. Kayveas said 1,200 e-mail complaints on CTOS had been sent to the National Insolvency Department since an online portal was set up last week.�

Among the complaints were that CTOS included in its credit listing summonses from the police or local authorities, delayed instalment payments on household appliances and unsettled hospital bills.�

He also claimed that Hamidy was not being �transparent� on the CTOS controversy.�

�It is a lie that banks in Malaysia do not rely on CTOS,� he said.