Every financial institution is required to submit their customer's credit conduct to this centralised system. Telco is excluded but they are plans to include all those government loans, korperasi, IPTA loans etc...but all these while just talks and rumours.
What is meant by credit conduct is mainly split into 3 major categories:
- How many applications is being applied for the past 1 year.
- How much "line" is being applied.
Thus banks or underwriters would know how "desperate" this person is seeking for credit facilities. And out of these apps, how many is approved and rejected.
- It would show how many credit facilities one had i.e. housing loans, credit cards, OD, hire purchase etc...
- Each line would show each facilities with it's outstanding, limits and payment behavior, legal status if any.
- Under the payment behavior string, 1 would meant miss 1 payment, 2 would meant miss 2 payment.
- If it's a card with outstanding close to limit granted might not give a good impression.
- If it's like Hybz mentioned, he's always late by 2 days...the payment string might shows all 1. But since it's a consistent pattern, there's nothing to worry about. But word of advise, phone the bank up and change the billing cycle.
- Legal status would shows what legal action had been taken.
This portion is mainly for officers to judge how good is your repayment, how much "burden" once has, etc...the main evaluation criteria lies in reviewing this section.
Special Attention Status
- This would show mainly accounts that had been written off.
- Or under AKPK management.
Meaning to say if one appears under this section, sorry to say that it really leaves a bad impression.
So it's advisable to visit BNM twice or at least once a year to view your own CCRIS report.
This is to detect whether someone had misused your identity to fraud for apps also.
CTOS is an independent company which collects all legal notices published.
So happy4ever is right that they are collecting from newspaper.
Note the word "published". So they either took it from newspaper or notice board outside the court.
They never approach "first hand" to credit companies like you mentioned!
CTOS is different from CCRIS as it only reports what was published. Even inclusive of normal civil suits which doesn't really involve financial institution.
That is why CTOS is still widely used besides CCRIS as CCRIS like I mentioned above only store reports from "financial institution". Whereas if one company or one person decided to sue you for defamation, or other legal matters and are being brought up to court, it would be captured under CTOS after the legal preceding is done and legal notice is issued. CCRIS would never capture those instances.
There's another company out there quite similar to CTOS, which is known as BRIS. Just that it's more focused on corporate side.
BTW, there's no such thing as black list.
Banks or financial institution based on all the above reports to make their judgment.
One can be listed in CTOS but if it's not related or the severity is not major, there would still be no problem.
CCRIS, however everyone with credit facilities would be listed. As long as the payment behavior is consistently good than there's no problem!
To sum up, the CCRIS reports are made available by Bank Negara Malaysia to basically assist banks :-
(a) To assess a person's credit worthiness by highlighting how prompt are payments made and/or whether there are overdue payments and by how many months - 0,1,2,3 or beyond. It is a 12 months running report meaning a CCRIS report dated 18 July 2008 will show number of overdue payments from July 2007 to June 2008. Overdue payments in earlier period which have been subsequently rectified would not be shown anymore ;
(b) In highlighting the total current financial commitments of a person, ie quantum of housing loans, car hire purchases, personal loans, number of credit cards and limits of each ; and
© Whether the person is at the same time applying for similar type of loans from numerous banks at one go.
CTOS reports are to show whether any legal proceedings have been initiated against the person before and in cases where there is/are such cases and although payments in full have been made and the legal suits subsequently struck off, these facts are usually ignored by CTOS and the onus is on the person concerned to obtain release letters from the banks/financial institutions concerned.
The BRIS reports will show the number of and name of companies (Sdn Bhd entities) of which a person acts as its director and/or secretary. Similar to CTOS, subsequent resignations are usually not reflected in such reports. If a company which the persons acts as director cum shareholder has been liquidated by third party companies or persons, this fact would adversely affect the person's creditability in the eyes of banks/financial institutions.
In applying for a car hire purchase loan or housing loan, banks would normally scrutinise all 3 reports, namely CCRIS, CTOS and BRIS.