what wodenus said is, once your record is there, even if you had clear all your debts and your debt status in CCRIS is "clear", you still have a record there mentioning your pass debt history.

similar to a criminal, for criminals, their "debt" is their jail serving time, once they clear up their "debt" which is their jail term, they were release from the jail (settle their debt - clear status in CCRIS), but still, they have a record as "used to be" a criminal. and it will be very hard for them to get a job.

now change the concept to bank black list/bankruptcy, (crime - taking up a loan), (jail term -your debt) (jail - CCRIS) (job- bank loan) (criminal - YOU! the bad borrower)

and you get the idea.

CRISS, CTOS or whatever, there's 3 of them last time. One was listed as illegal but still operating as our banks are very very 'kiasu' kind of banks. The moment they smell a risk factor, all loans are off! If you have another car instalments or your house instalments is outstanding, whatever loan you are applying now if off. In Malaysia, our financial credit is FOREVER. Once a theif always a theif, that's our banks policy. No such thing as turning over a new leaf or not. GOD forgives but our banks NEVER.

In 1997 during the financial crisis, my business was in trouble. My car was reposses twice and by the third time, I gave up the car. The car was kept 18 months before it was auctioned off. They auctioned if off for 23K when the outstanding loan was 45K. This is done without my knowledge. A year after the repossesion, I went to the finance company to negotiate for the car's release. I said to let me continue paying for the car and skip the duration of the time the car was in holding. What I meant was, I will pay the 4 months outstanding when it was reposses and all the interest accrued during the holding period. The manager was adamant that I pay all outstanding plus interest plus storage charges. So, I failed to renegotiate because the manager was not interested in helping out. 6 months later, I saw the car on the road again. I checked with the finance and found that it has been auctioned and I was left responsible with the balance!

Two years later, I was summoned to the magistrate and I admitted I owed them and willing to pay RM200 a month. Those days there were no AKPK to start with, it was after too many like me was turning out that they started AKPK. The lawyer was not even authorised to accept or decline my offer. The matter is left standing as it is. Then the amount balloned to almost 100K now. I was waiting for them to declare me a bankrupt but it never came. I have this agencies calling now and then threatening to seal my house and auction off everything in the house. Either that or try paying again. Not to a bank but to an office! I told them to go ahead. I am probably a bankrupt now, who cares anyway, I tried my best.

In the US, the statute of limitations is 5 years, meaning all records unsolved will be erased after 5 years and you are a new man, a second chance. In Australia, 7 years and I am sure in other countries, there's a limit. Malaysia forever.

So, you should be careful dealing with banks, they are shrewd and without mercy. Our banks are the most unprofessional banks compared to normal banking and it is all santioned by our Central Bank that do not stay neutral. They support the local banks more rather than holding them in line. Look at our insurance companies, they are the same. Look at also our private hospitals. Spend wisely and think hard before defaulting. Better still don't take the loan! My life is turned upside down for the past decade but going along well. People just need to adapt. You know, it's ironic that people who loaned millions are never taken to task but those who owes 20K or 30K  are always left in the gutters.