Yes, its unfair but banks trust the CCRIS and CTOS more than our talking.
The banks dont know u and only way to understand the customer is through the systems.
I think u should look into the telco fraud issue and get the telco either waive the amount or find a way to settle it.
Once u have the settlement letter then it will much better to apply for loans.

I work at credit risk assessment industry which involved everything mentioned here daily.