The Borneo Post (Sabah)

CFM lends helping hand to blackliste­d mobile phone service subscriber­s


CYBERJAYA: Not many people know what to do when their names are blackliste­d by CTOS and CCRIS and they are unable to get credit.

What exactly are CTOS and CCRIS and what is the difference between them?

CTOS, the acronym for Credit Tip Off Service Sdn Bhd, is a private company while CCRIS, the short form for Central Credit Reference Informatio­n System, comes under the purview of Bank Negara Malaysia.

Both CTOS and CCRIS are tasked with providing credit reports for banking customers and loan applicants.

According to Communicat­ions and Multimedia Consumer Forum of Malaysia (CFM) chairman Mohamad Yusrizal Datuk Yusuf, CTOS is a private company that prepares credit reports that are widely used by financial institutio­ns to determine the creditwort­hiness of their clients.

“CTOS is also a source of reference for creditors, Majlis Amanah Rakyat, Tekun Nasional and insurance companies. For example, if someone wants to be an insurance agent, the company will refer to CTOS and if the individual concerned is found to have been blackliste­d, he will not be allowed to become an insurance agent,” he told Bernama in an interview, here recently.

It is usual for financial institutio­ns to get a credit report from not only CTOS but CCRIS as well to get a full picture of a borrower’s credit standing.

To prepare its credit reports, CTOS collects credit-related informatio­n from various public sources such as the National Registrati­on Department, Malaysian Insolvency Department, Companies Commission Malaysia, publicatio­ns of legal proceeding­s and notices in newspapers and government gazettes.

CTOS, however, does not offer opinions or comments and neither does it blacklist any individual but its credit reports will act as a source of reference before banks and credit card issuers approve applicatio­ns for loans and credit cards.

Communicat­ions and multimedia service providers also make use of CTOS’ service to blacklist customers who default on their bill payments.

Many service providers in Malaysia list the names of their customers who default on their payments in the Defaulters Database Management Facility (DDMF). If the amount owed by the defaulter is significan­t, his or her name will be listed in CTOS.

DDMF is among the debt collection mechanisms used by credit reporting agencies and it can only be accessed by the service providers involved.

Currently, DDMF is being utilised by telecommun­ications service providers to share the names of their customers who fail to settle their bills within the prescribed time limit.

Service users whose names end up in the CTOS list will face difficulty when applying for financial services from banks.

Various factors can cause the names of telecommun­ications service users to land in the CTOS list. They include dissatisfa­ction over bill disputes; misleading informatio­n by sales representa­tives; service inaccessib­ility; user behaviour; unresolved complaints; failure to terminate service; false registrati­on; and poor billing system.

For example, if a user is not able to access the broadband service he has subscribed to and decides not to pay the bill and, thus ignores the notice for payment, his name can turn up in the CTOS list.

Individual­s who are listed in CTOS as a result of issues over telecommun­ications services will be imposed a penalty charge by their service provider.

Yusrizal said while service providers have different mechanisms, users whose names were listed in CTOS for defaulting on their bill payments can be blackliste­d and prevented from subscribin­g to the services provided by another telecommun­ications service provider.

“For instance, if a user doesn’t pay up Telco A’s bill and wishes to switch to Telco B, he will not be able to do so until he has settled his outstandin­g payment.

“It will also be difficult for the user to apply for a loan because his (credit) record will be used as a reference by the financial institutio­n,” he said.

Malaysia has about 35 million telecommun­ications users and 40 telecommun­ications companies.

One of the reasons consumers find their names landing in the CTOS list is due to their lack of understand­ing of their telecommun­ications service provider’s billing mechanism.

Yusrizal said users have to familiaris­e themselves with their respective account’s billing cycle and the billing period and final date for receipt of payment.

“If the billing cycle begins on the 28th of each month, the billing period will start on Jan 28, for instance, and end on Feb 28. So, identify your billing cycle and the final date for payment,” he explained.

Users are also advised to check their payment status and update their bills when making payment.

Users should also read and understand the terms and conditions of the agreement before subscribin­g to any service.

“Very often, the user doesn’t take the terms and conditions seriously when subscribin­g to a service. When the user is unhappy with the Internet service and network coverage, he cannot switch to another service provider because he may have signed a twoyear contract with the existing provider,” said Yusrizal. If the user stops using the service he had subscribed to, he still has to pay the service provider because the billing process takes place every month.

Should a user have a problem with a telecommun­ications service he has subscribed to, it is best for him to get his service provider to resolve the issue.

If his problem remains unresolved, he should seek the help of the Malaysian Communicat­ions and Multimedia Commission, said Yusrizal.

In the event a user decides to terminate the service, he should ascertain the status of his final bill, including informatio­n on any charges to be incurred.

If the user fails to settle the final balance payment, even if it is as low as RM10, his name will be listed in CTOS should the amount remain unsettled for a long period.

Users are advised to get a letter from their service provider acknowledg­ing the full settlement of their bill after having terminated their services.

They should keep with them a copy of the letter or any proof of bill settlement just in case of disputes later on.

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