eh since when pulak car need guarantor??? never heard about this before
anyway vw is a good car to buy but with the current salary better opt for cheaper car
also don't simply become someone guarantor coz if that person don't pay, you going to get it lo...
just my 2 sen

when bank request guarantor for loan, usually is bcoz either the amount is big, or the person credit score is somewhat questionable.

but really just for a car woh..need a gurantor???!!!!
that's person really have big head then to get car beyond his affordability lo...
but to become a guarantor is a big risk coz if the owner don't pay..the bank is coming after you lo..

Sometimes the bank ask for a guarantor even if the income vs commitment levels are sufficient, especially due to the lack of any other loan repayment records in the CCRIS, which can be an issue even for those applying for a mortgage

If I were a father and trust my child, I wouldnt mind guaranteeing his car purchase as long as the price suits his incomes (ie. installment that is a maximum of 20% of his nett salary). Between siblings though, I do not recommend.

Just get ur parents or wife/husband be ur gurantor . or put more down payment

Hi Azmi, wanted to ask you whether from your experience, say your clients with good credit history, no CCRIS record, DSR is still healthy but say they have dispute with one stupid Telco or stupid Gym and their name in CTOS

Will the Bank really turn away a customer like this?

Can you share your experience in this situation or perhaps you can post in the Mortgage tread.

Just to seek for advice..

Sometimes we receive sms from 3rd parties that they claimed can help the client to reduce the monthly repayment from 50% to 70% with repayment period
up yo 10 years. Interest rate 6% to 8%. WOW..!! it help alot to ease down the burden for the monthly repayment debt.
They claimed that specialise in this debt consolidation matter. Option solution: FFP or AKPK.

If that is the case, will it affect our CTOS/CCRIS?
Are they legal?

Any advice?

This is a good question, ill try and keep it short. And keep in mind that each bank has it's own terms and policies, I can only speak on behalf of the few (5 banks) that my firm is empanneled to.

There are many types of CTOS disputes, but for the purpose of explaining, Ill limit it to just 2 types of disputes:

1. Dispute with general companies like: telcos (used to be that telcos report to CTOS, but now they have their own system in place), personal lenders like AEON/Singer/CourtsMmoth, gyms, majlis perbandara, TNB, Syabas, etc.

So when it comes to disputes with these general companies, all you need to do is to settle the disputed amount, and get the settlement letter from those companies to show that you have settled the account. During the application, print out the CTOS record, along with the settlement letter for your banker/broker to include with the application.

2. Dispute with banks (!!!): Late interest payments, credit card outstanding that you have not settled, for amount below RM30k, hire-purchase balance, etc.

CTOS dispute with banks carry a lot more weight. Each bank would have different policies, but with OCBC/AlAmin for example, any CTOS dispute (with another bank) below RM2k is ok; as long as you settle the amount and prove it with a letter of settlement, they may (!!!) consider the matter closed, and proceed with processing your loan applications.

But if the amount is higher than RM2k, OCBC/AlAmin would only consider processing your loan application if the settlement has been done after more than 1 year ago. So if you are planning to buy a property, and have CTOS dispute with banks, you better settle it today because the longer you wait, the more time you need for the cool-down period to end.

Keep note that each bank has different policies when it comes to CTOS disputes, including the cool-down period and minimum limit for the dispute to be seriously affecting your application. In short, to answer your question, CTOS disputes with general companies don't affect you application as much as CTOS disputes with banks.

Also, everyone can call me Faiz Azmi, or Faiz if you consider me a personal friend. Azmi is my father's name

I have never received such messages, but I can imagine that what they would be doing is to consolidate all your loans into 1 mortgage account, with the house as collateral. Essentially they are asking you to let them help you refinance your house. They would also probably extend the tenure of the mortgage to the maximum possible tenure of 35 years or until you reach the age of 70.

If that is the case, then "I also specialize in this debt consolidation matter". Refinancing is a valid financial maneuver, but you should only do it if you know what you are doing. Start asking questions if you need to know more - should you do it? In what ways will it benefit you? Will it affect my future borrowing power?

Are they legal? They are probably bankers or brokers such as myself. Offering prospects to refinance their house is legal, but the method they used to market their services may actually breach the Personal Data Protection Act (PDPA). You won't see me messaging the public about these "offers". It's just not my style...

As for CTOS/CRIS, if what they do is to refinance and consolidate all your debts to one mortgage account, then the effect of CCRIS/CTOS is just like if you were to apply from the banks/(or myself) for a refinancing. in fact, it may actually be better to consolidate your account (such as CC, HP, PL) into one mortgage account due to the lower interest.

This post has been edited by wild_card_my: Dec 15 2014, 02:24 PM

Tks Faiz. Apologies cos I had a friend that has similar name as yours. He had 3 names so I thought the second name was his name and last was his dad. But he told me to call him by his last name.

Hmm, so must still settle with the Telco / Gym before Bank will approve Loan. Not so good news for those people who was conned persuaded by the Telco / Gym to sign-up for promotions only to find out that what was promised was not delivered and unable to break contract.

Yes, there are many companies offering such services to lower your monthly commitments and also interest rate.

But as the Borrower, you must also do your own calculations to see if you are really saving money.

Just lets say for arguement sake, you have RM10K in CC that you have problem paying.

By paying just the min, you will carry an interest rate of about 17.5% p.a. or 1.25% per mth.

A firm offers you a P-Loan of between 6% to 8% for 10-years to lower your monthly payments.

But what is the true cost.

Refer tables below.

Yes, P-Loan for 10-yrs lowers your monthly commitments but you end up paying more

Also, P-Loans calculation of interest is Flat whereas CC is based on reducing balance.

Even if I use a P-Loan for 7-yrs @ 6% to try to match the tenure of the CC @ 88 mths, the interest paid for the P-Loan is still higher.

So, please calculate wisely







This post has been edited by cfa28: Dec 15 2014, 02:33 PM

"A firm offers you a P-Loan of between 6% to 8% for 10-years to lower your monthly payments."

Is this type of "firm" called credit company when they offer you a loan but when you default your repayment with them, the are also known as 'ah-long'??

now a day, even bank collector also offers p-loan for ppl to clear bank debt, earned % from bank. then deal it the 'ah-long' way on the p-loan taken.

This post has been edited by vincentwmh: Dec 15 2014, 03:25 PM

Bank is licensed "ah long"..

No problem bro.

And yes, you still need to pay, otherwise the record in CTOS would remain "under dispute" and some banks still insist on you settling the unpaid dues. If you have a problem with the services (not rendered properly, or not rendered at all!!!) the bank expects you to take it to a different body. All the bank wants to see is a clean record.

In that sense, it's our "HAK PENGGUNA" laws that is rather weak. But I see it improving, as per all other aspects of life in this country. Recently they have been going against cartel-like pricing policies by the shop owners, which is a good step forward.

This post has been edited by wild_card_my: Dec 16 2014, 12:35 AM

Well you are half-right. Banks are licensed. But they are not Ah Long, they are banks. I know you are just speaking with a tonge in your cheek, but this is an interesting topic that I need to chime in:

You see, banks are licensed, that means they have to go through numerous regulatory bodies from the top that is BNM, all the way to those little regulations, aktas, and laws imposed upon financial companies in Malaysia (which include investment firms as well as insurance companies)

The big banks cannot be owned by just a single person, they have to be opened up and have multiple share holders; there is also a shareholding limit, and most of the banks are public companies anyway. Their books are open for the various regulators as well as public to audit, their deposits have to be tallied every day, they have limits in place for their own leverage with BNM (they borrow from BNM based on the amount of deposit they hold) and if there are any discrepancies in their books or operations, they can be stopped for an audit to be conducted. About a year ago a unit trust company owned by a bank was suspended from trading due to their illegal agent activities. And of course, they have to audit and present their accounts every year.

Not to mention that banks do not come to your house to smash your mother's face when you are behind on your repayments or even refuse to pay, and choose to default on your personal loans. All the banks could do is to bankrupt you, or... (hahaha) report you to CTOS and submit your delinquency to CCRIS. They cannot touch your family members unless the banks could prove that you have transferred assets to them within the past number of years. Finally, they could show you in detail the exact date and even time of your repayments, your outstanding balance, and the calculations that go along with that.

None of this can be said about Ah Long. So... are banks licensed Ah Longs? Not really, they are companies licensed to operate in the financial industry with its main profit deriving from lending, borrowing, and investing.

Maybe I should consider writing a book.

This post has been edited by wild_card_my: Dec 16 2014, 12:52 AM

good sharing bro..

Yes, but unfortunately Banks do 'outsource' their collection to certain agencies who are also using questionable tactics to recover their monies. When the Repo Man comes to take your Car, he does not care if you already just paid the installment yesterday, even if u have proof. But that is a different argument for another day.

i understand BNM only permits banks to 'out-source' credit card debt collection with an exception to AMBank for HP.

any other loans default, they cannot out-source to debt collector. no?

CC - yes, very common to outsource to agencies to collect

HP - when you default and its time to repossess your car, it is given to their so-called panel right? Can't be the Bank Officer himself right. Whetehr you call that panel or outsource, the people will still use rough tactics

HL - this can be sold to SPV / Special Funds who specialise in recovery of such NPL

Dear All
CTOS now is under governing of Ministry Of Finance. CTOS can't disclose your report unless you are agree to disclose.


Important Notice –
Additional Requirements for the Delivery of Malaysian Credit Reports

In view of the full enforcement of the Credit Reporting Agencies (CRA) Act on 15 October 2014, the CRA Act has set forth important obligations for all Credit Reporting Agencies relating to the provision of credit information of Malaysian companies and individuals.

Please note the additional requirements for the delivery of Malaysian Credit Reports from 15 October 2014 (date inclusive)s follows:

1. Subject Company has rights under the Act including disclosure of the Subscriber Identity for whom the report is prepared for.
2. Consent must be obtained from the Subject Company before generating the credit information

Kindly note that the aforementioned requirements only apply to Malaysian Business Information Report and Comprehensive Reports. The delivery process for overseas reports shall remain unchanged.
===========================================================================

SUMMARY OF RIGHTS CREDIT REPORTING AGENCIES ACT 2010 [ACT 710]

The Credit Reporting Act 2010 promotes fairness, accuracy and privacy in the practice of credit reporting. Credit reporting agencies collect and disclose information about you, such as a failure to pay your bills or if you have been made bankrupt. The Act, gives you specific rights, most of which are summarized as below.

Warning: This is only a generalized summary. If there is a difference, conflict or contradiction between this summary and any provision of the Act, the provision of the Act shall prevail.

You must be informed by the credit reporting agency by way of a notice which States:
i. that credit information is being processed by or on behalf of the credit reporting agency together with its description;
ii. the purpose for which the information is being processed;
iii. the source of such information;
iv. of how you can contact the credit reporting agency in case you have any inquiries or
complaints;
v. you have the right to access to such information and also have the right to request the credit reporting agency to correct your credit information; and
vi. to whom the credit information will be disclosed.


Your credit information cannot be collected and used for any purpose other than what is provided under the Act.
This means that a credit reporting agency, may only collect and use your credit information to prepare a credit report to assess your credit worthiness, which includes but not limited, to any history of failure or diligence regarding payment of your bills (reputational collateral). Your credit information cannot be used or disclosed by any credit reporting agency for purposes other then what is permitted under the Act. An example of such activity includes but not limited to, is disclosing your credit information for direct marketing purposes. In the event that you have information regarding the occurrence of such practice then a complaint may be forwarded to the Registrar.

Your consent must be obtained before a credit reporting agency can disclose/reveal your credit information.
This means that a credit reporting agency must get your consent before they can submit your credit report to their subscribers.
Your credit report can only contain information according to the Act.


This means that a credit reporting agency cannot include such credit information in their report regardless whether you have given consent or not;

i. if the source of such credit information is not included in the report;
ii.if such credit information is regarding any pending proceedings in court more than two years after the proceedings began that has yet to be settled;
iii. if such credit information is regarding any default in repayment of credit two years after the date of final settlement of the amount in default.

Your right to request from a credit provider information regarding reasons of unfavorable credit action
This means that if a credit provider has taken an unfavorable credit action against you for example; rejects your application for a loan, and that rejection was based on a credit report provided by a credit reporting agency, then you have the right to be informed of the identity of the credit reporting agency. You have the right to access the said credit report.
Your right to access credit information or credit report
This means that you have the right to have access to your credit information or credit report from a credit reporting agency which holds or have processed your credit report.
However the credit reporting agency must verify your identity and confirm that such information is indeed in their database before complying. Upon your request and upon payment of any fee which may be prescribed by the agency in custody of your credit information.
Your right to dispute incorrect credit information
This means that if your credit report which was disclosed to the credit provider in response to the application for credit made by you, and such credit report contain incorrect information, you then have the right to challenge such credit report according to the procedures provided under the Act.
Contact information:


Office of the Registrar for Credit Reporting Agency:
Enquiries Line:
603 8890 6560/6561
Fax:
603 8890 6423
Email Address:
warga_ppapk@treasury.gov.my
Web Address:
www.treasury.gov.my
Business Address:

Level 1. Treasury 2, Ministry of Finance Complex No.7, Persiaran Perdana, Precinct 2, 62590, Putrajaya thumbup.gif

Dear All
CTOS now is under governing of Ministry Of Finance. CTOS can't disclose your report unless you are agree to disclose.


Important Notice –
Additional Requirements for the Delivery of Malaysian Credit Reports

In view of the full enforcement of the Credit Reporting Agencies (CRA) Act on 15 October 2014, the CRA Act has set forth important obligations for all Credit Reporting Agencies relating to the provision of credit information of Malaysian companies and individuals.

Please note the additional requirements for the delivery of Malaysian Credit Reports from 15 October 2014 (date inclusive)s follows:

1. Subject Company has rights under the Act including disclosure of the Subscriber Identity for whom the report is prepared for.
2. Consent must be obtained from the Subject Company before generating the credit information

Kindly note that the aforementioned requirements only apply to Malaysian Business Information Report and Comprehensive Reports. The delivery process for overseas reports shall remain unchanged.
===========================================================================

SUMMARY OF RIGHTS CREDIT REPORTING AGENCIES ACT 2010 [ACT 710]

The Credit Reporting Act 2010 promotes fairness, accuracy and privacy in the practice of credit reporting. Credit reporting agencies collect and disclose information about you, such as a failure to pay your bills or if you have been made bankrupt. The Act, gives you specific rights, most of which are summarized as below.

Warning: This is only a generalized summary. If there is a difference, conflict or contradiction between this summary and any provision of the Act, the provision of the Act shall prevail.

You must be informed by the credit reporting agency by way of a notice which States:
i. that credit information is being processed by or on behalf of the credit reporting agency together with its description;
ii. the purpose for which the information is being processed;
iii. the source of such information;
iv. of how you can contact the credit reporting agency in case you have any inquiries or
complaints;
v. you have the right to access to such information and also have the right to request the credit reporting agency to correct your credit information; and
vi. to whom the credit information will be disclosed.


Your credit information cannot be collected and used for any purpose other than what is provided under the Act.
This means that a credit reporting agency, may only collect and use your credit information to prepare a credit report to assess your credit worthiness, which includes but not limited, to any history of failure or diligence regarding payment of your bills (reputational collateral). Your credit information cannot be used or disclosed by any credit reporting agency for purposes other then what is permitted under the Act. An example of such activity includes but not limited to, is disclosing your credit information for direct marketing purposes. In the event that you have information regarding the occurrence of such practice then a complaint may be forwarded to the Registrar.

Your consent must be obtained before a credit reporting agency can disclose/reveal your credit information.
This means that a credit reporting agency must get your consent before they can submit your credit report to their subscribers.
Your credit report can only contain information according to the Act.


This means that a credit reporting agency cannot include such credit information in their report regardless whether you have given consent or not;

i. if the source of such credit information is not included in the report;
ii.if such credit information is regarding any pending proceedings in court more than two years after the proceedings began that has yet to be settled;
iii. if such credit information is regarding any default in repayment of credit two years after the date of final settlement of the amount in default.

Your right to request from a credit provider information regarding reasons of unfavorable credit action
This means that if a credit provider has taken an unfavorable credit action against you for example; rejects your application for a loan, and that rejection was based on a credit report provided by a credit reporting agency, then you have the right to be informed of the identity of the credit reporting agency. You have the right to access the said credit report.
Your right to access credit information or credit report
This means that you have the right to have access to your credit information or credit report from a credit reporting agency which holds or have processed your credit report.
However the credit reporting agency must verify your identity and confirm that such information is indeed in their database before complying. Upon your request and upon payment of any fee which may be prescribed by the agency in custody of your credit information.
Your right to dispute incorrect credit information
This means that if your credit report which was disclosed to the credit provider in response to the application for credit made by you, and such credit report contain incorrect information, you then have the right to challenge such credit report according to the procedures provided under the Act.
Contact information:


Office of the Registrar for Credit Reporting Agency:
Enquiries Line:
603 8890 6560/6561
Fax:
603 8890 6423
Email Address:
warga_ppapk@treasury.gov.my
Web Address:
www.treasury.gov.my
Business Address:

Level 1. Treasury 2, Ministry of Finance Complex No.7, Persiaran Perdana, Precinct 2, 62590, Putrajaya

Dear All
CTOS now is under governing of Ministry Of Finance. CTOS can't disclose your report unless you are agree to disclose.


Important Notice –
Additional Requirements for the Delivery of Malaysian Credit Reports

In view of the full enforcement of the Credit Reporting Agencies (CRA) Act on 15 October 2014, the CRA Act has set forth important obligations for all Credit Reporting Agencies relating to the provision of credit information of Malaysian companies and individuals.

Please note the additional requirements for the delivery of Malaysian Credit Reports from 15 October 2014 (date inclusive)s follows:

1. Subject Company has rights under the Act including disclosure of the Subscriber Identity for whom the report is prepared for.
2. Consent must be obtained from the Subject Company before generating the credit information

Kindly note that the aforementioned requirements only apply to Malaysian Business Information Report and Comprehensive Reports. The delivery process for overseas reports shall remain unchanged.
===========================================================================

SUMMARY OF RIGHTS CREDIT REPORTING AGENCIES ACT 2010 [ACT 710]

The Credit Reporting Act 2010 promotes fairness, accuracy and privacy in the practice of credit reporting. Credit reporting agencies collect and disclose information about you, such as a failure to pay your bills or if you have been made bankrupt. The Act, gives you specific rights, most of which are summarized as below.

Warning: This is only a generalized summary. If there is a difference, conflict or contradiction between this summary and any provision of the Act, the provision of the Act shall prevail.

You must be informed by the credit reporting agency by way of a notice which States:
i. that credit information is being processed by or on behalf of the credit reporting agency together with its description;
ii. the purpose for which the information is being processed;
iii. the source of such information;
iv. of how you can contact the credit reporting agency in case you have any inquiries or
complaints;
v. you have the right to access to such information and also have the right to request the credit reporting agency to correct your credit information; and
vi. to whom the credit information will be disclosed.


Your credit information cannot be collected and used for any purpose other than what is provided under the Act.
This means that a credit reporting agency, may only collect and use your credit information to prepare a credit report to assess your credit worthiness, which includes but not limited, to any history of failure or diligence regarding payment of your bills (reputational collateral). Your credit information cannot be used or disclosed by any credit reporting agency for purposes other then what is permitted under the Act. An example of such activity includes but not limited to, is disclosing your credit information for direct marketing purposes. In the event that you have information regarding the occurrence of such practice then a complaint may be forwarded to the Registrar.

Your consent must be obtained before a credit reporting agency can disclose/reveal your credit information.
This means that a credit reporting agency must get your consent before they can submit your credit report to their subscribers.
Your credit report can only contain information according to the Act.


This means that a credit reporting agency cannot include such credit information in their report regardless whether you have given consent or not;

i. if the source of such credit information is not included in the report;
ii.if such credit information is regarding any pending proceedings in court more than two years after the proceedings began that has yet to be settled;
iii. if such credit information is regarding any default in repayment of credit two years after the date of final settlement of the amount in default.

Your right to request from a credit provider information regarding reasons of unfavorable credit action
This means that if a credit provider has taken an unfavorable credit action against you for example; rejects your application for a loan, and that rejection was based on a credit report provided by a credit reporting agency, then you have the right to be informed of the identity of the credit reporting agency. You have the right to access the said credit report.
Your right to access credit information or credit report
This means that you have the right to have access to your credit information or credit report from a credit reporting agency which holds or have processed your credit report.
However the credit reporting agency must verify your identity and confirm that such information is indeed in their database before complying. Upon your request and upon payment of any fee which may be prescribed by the agency in custody of your credit information.
Your right to dispute incorrect credit information
This means that if your credit report which was disclosed to the credit provider in response to the application for credit made by you, and such credit report contain incorrect information, you then have the right to challenge such credit report according to the procedures provided under the Act.
Contact information:


Office of the Registrar for Credit Reporting Agency:
Enquiries Line:
603 8890 6560/6561
Fax:
603 8890 6423
Email Address:
warga_ppapk@treasury.gov.my
Web Address:
www.treasury.gov.my
Business Address:

Level 1. Treasury 2, Ministry of Finance Complex No.7, Persiaran Perdana, Precinct 2, 62590, Putrajaya