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.

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

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

This is actually very very very good news to all. CTOS has been very naughty to my clients and if this move by MOF puts a leash on them, all the better.

When you cut it, you need to get a letter of cancellation by the bank that issued your credit card, before the bank you are applying your mortgage to would agree to disregard your total outstanding that adds up to your total commitment, thus increasing your DSR... it is best that you settle your CC O/S and cancel the cards before applying for a loan though first

Once you cancel the cards, and the CCRIS is updated on the 15th, the whole loan item would be removed from your CCRIS. this is best done if you are a bad paymaster and still need to buy a house, so what you do is you settle and cancel the loans (cc, hp, pl, anything), wait until the CCRIS clears, and then you apply for the loan.

However, if you have a bad CCRIS repayment records, and you applied for a loan, gets it rejected because of being a bad pay master, and then you settle off those loans that you have a bad record with... the bank already remembers of you bad credit history and would most likely reject your appeal even if you settle and cancel those loans off.

Hello, thanks for the summon. Can't keep up with the postings and replies in this forum. Very exciting!!

Well yes, and no. For credit cards, all you need to do is to start paying the minimum 5% each month, that way the bank will not MARK your CCRIS. So your outstanding can even be RM100k, but as long as you pay RM5k a month (and subsequently lower as your outstanding reduces as you pay them), the bank would consider that a payment for that month has been done.

For housing loans, car loans, and personal loan, or any other TERM LOANs, you are expected to pay the installment in full every month, otherwise they would mark you as having a late payment in one of those months.

Now going back to your question, let's say you start being a good paymaster starting this month (December 2014)... your late payment records in January 2014 till this month would stay with you for a year on a rolling basis. Next month (January 2015), the January 2014 record would be erased... The month after that (February 2015), the record for February 2014 would be erased. And so on. So if you are a bad pay master till November 2014, that record will stay with you until Novermber 2015

To erase this, you need to make a full settlement AND cancel the account, wait a while for the bank to update that info in CCRIS. Once the record of THAT PARTICULAR LOAN ACCOUNT is gone from the CCRIS, no banks would know how lame you were as a paymaster until you start acting up again haha

pay your dues people.

This post has been edited by wild_card_my: Dec 23 2014, 08:30 PM

Nope. Only commitments to the banks are tracked in CCRIS: Mortgage, HP, CC, PL, ASBLoans... Shares margins, things like that.

Insurance, Gym memberships, telco, astro, etc are NOT tracked in CCRIS. However, if you lambat bayar all these bills, they can be forwarded to CTOS and you will find it difficult to get loans in the future.

Self check usually means you go there to generate a report. Does this mean that you need to pay them RM10 for you to check the CTOS? It's a private entity that collects our information, i disagree with CTOS since they can be so irresponsible to my clients' accounts. I should write a letter to the Star about this.

Most of my clients still find their cancelled credit cards still available on their CCRIS reports after a few days of cancellation. Cancellation happened before the 15th or even 10th, and the reports printed a few days later still show the credit cards

http://www.thestar.com.my/Opinion/Letters/...ccess-to-CCRIS/

CTOS and CCRIS, the evil twins

CTOS and CCRIS are alike, but not the same. While both collect individuals credit records, CTOS extends further by by collecting information from multiple sources, namely utility and servicing companies, as well legal actions taken against the individuals. CCRIS on the other hand is limited to collecting credit related records gathered from financial institutions.

CTOS

CTOS is one of the many credit reporting agencies in Malaysia and operates as a private company. It is regulated under the CRA Act 2010. It operates as a go-to agency for some banks to analyze loan applicants’ credit history. It also allows organizations such as banks, public utility companies (TNB, SYABAS, PUAS), communication companies (Digi, TMNet, Celcom), local city councils and other government statutory bodies to report individuals as well as other companies unpaid debts.

For example, after requesting for a termination of service with TMNet, you will need to pay for the services rendered between the last statement to the day you requested for the termination. Many find it easy to shriek from paying this final bill since they are no longer requiring the service from the company. After multiple failed attempts by the company to extract payments from you, your name will be reported from the said company to CTOS. Having your name flagged in your CTOS will be cause to have your loan application denied.

In another example, when you default from paying your bank loan commitments such as hire-purchase, credit cards, and mortgages, legal action will be taken against you. CTOS will be notified of this and it will severely affect your credit score.

The good news is that that if you have a record in CTOS, you can clear your name by settling the amount you are due and proving the settlement to CTOS. The bad news is that any bank that have generated your CTOS record when you applied for a loan from them previously will remember every default and legal action taken against you. The ugly news is that for most legal actions taken against the borrower, only a full settlement would fully remove the note from the borrower’s CTORS record.

While financial institutions such as banks are not allowed to contribute information on delinquent payers to CTOS, there is nothing stopping them from using the service to assess the risk profile of loan applicants. For a number of banks, your loan application will be rejected if your record is tainted in CTOS.

CCRIS

CCRIS is maintained by the BNM. Every registered financial institution in Malaysia is required to report their customers’ credit-related activities to the BNM, and consequently recorded into CCRIS. Every single loan applications, approvals and rejections, as well as loan accounts that are still active are sent by the financial institutions to the BNM each month.

The key points in reading a CCRIS report lies in each loan entries that you have. Each loan entry spans a whole row and has a few columns. The main columns are Approval Date, Capacity, Lender, Facility, Account Number, Last Update, Outstanding, Limit, and Installment Arrears for the Last 12 Months. While most of the items are self-explanatory, I will expand on the rest of them. It is important to note that when applying for a loan from financial institutions, the CCRIS information that they can view is limited; for example they are not able to see the name of the Lender and the Account Number of the loans facilities.

HOW THEY AFFECT LOAN APPLICATIONS

When applying for a loan from any financial institution in Malaysia, it is important to keep in mind of a few things before sending in the application. Upon submission, the financial institution will extract your CCRIS and in some cases, your CTOS reports as well. This information will be kept by the bank for years, even after you have purged the records from your CCRIS and CTOS by reconciling your debts. So if you have horrible credit scoring, it may be prudent to defer from applying for any loans at the moment.

Keep an eye of your current commitments and its repayment schedule. Current as well as future (based on the loan amount that you applied for) commitments will be used to calculate your debt-service-ratio (DSR). The DSR determined if the applicant has enough income to pay all his commitments. If it is determined that the DSR burst over the limit imposed by the particular financial institution, the loan application will be rejected under normal circumstances.

An applicant’s loan repayment pattern of the past 12-months will also be used to calculate his credit worthiness. A good repayment pattern will give the applicant in a positive light; on the other hand, the financial institution will be hesitant to approve loans for those who display errant repayment behavior. I will discuss loan applications and DSR in greater details in future articles.

This post has been edited by wild_card_my: Apr 20 2017, 07:33 PM

Anytime after you have paid off the outstanding is fine. After making even just half the outstanding payment (that is number of months you defaulted x amount you should have paid each month) to PTPTN, you will be issued a letter by them, with this letter, the bank will accept that you have made enough payment to "clear" your name off based on their SOP. Of course, they would still see this PTPTN outstanding payments, months upon months that you havent repaid your PTPTN, thus this will still affect the credit controllers' judgement.

So the BEST method would be to make the full repayment, that is to clear off your PTPTN debt in full, and wait for it to clear off your CCRIS. Usually you need to do before the 15 of the month, for it to clear from your CCRIS by the 15 of next month. By doing this, the bank wouldn't even know that you had defaulted on your PTPTN, which is a good thing.

yeap, but you need the letter from PTPTN to say that you have paid some or all of your dues. This letter is acceptable by bank for this loan commitment ONLY.

Other loans such as PL, CC, all got no such letter, if you dont pay for a few months and it is reflected in your CCRIS, you will need to wait 12 months for it to clear off your CCRIS or you can pay the loans all back.

This case passed.

All you need to do is to pay at least half of the amount arrears and they will issue the letter. They understand that they are making people's life difficult (by listing the PTPTN financing into the borrowers' CCRIS) but there is an escape - by paying a portion of your defaulted amount.

Yeap, GYMs, Courts Mammoth, Majlis Perbandaran (summons), Astro, any companies can report to CTOS. this way they will get back the money owed to them. Personally I think it is a fair system - you have to pay back what you owe.

I dont mean to plug my services, but I can do CCRIS check on behalf of my client for RM20. I do it to filter clients from the get go since I get to see everything there, with their consent of course.

But as a whole, the process is very manual