Inaccurate credit rating: CTOS ordered to pay RM200,000 to resort director
March 11, 2024 23:15 MYT
Inaccurate credit rating: CTOS ordered to pay RM200,000 to resort director
The High Court has ordered CTOS Data Systems Sdn Bhd (CTOS) to pay compensation of RM200,000 to the director of a resort following an inaccurate credit rating.
KUALA LUMPUR: The High Court here has ordered CTOS Data Systems Sdn Bhd (CTOS) to pay compensation of RM200,000 to the director of a resort following an inaccurate credit rating.
Judge Datuk Akhtar Tahir in his recent judgment said the court found that the CTOS had breached its duty to look after Suriati Mohd Yusof, 43, and went beyond the functions it was registered for.
"This has resulted in the plaintiff suffering a loss. The court has limited the compensation awarded for the personal loss she has suffered. The plaintiff's reputation as well as her relationship with her husband has been damaged due to the defendant's negligence and breach of fiduciary duty.
"Therefore the court allowed the plaintiff's claim and awarded damages of RM200,000. The court also awarded costs of RM50,000 to the plaintiff," he said.
He also said there is no provision in the Credit Issuing Agency Act (CRAA) 2010 that gives CTOS the authority to formulate credit scores or create its own criteria or percentages to formulate credit scores because the defendant is only authorized as a custodian of credit information that can be accessed by its customers.
The judge said the main role of CTOS is to collect, record and store the information received and is empowered to disseminate the information to its customers including financial institutions.
The plaintiff, who was a director and shareholder of Keranji Beach Resort Sdn Bhd in Pulau Perhentian, Terengganu at the time of the incident, has sued CTOS for alleged negligence and breach of fiduciary duty by giving an inaccurate credit rating which caused the woman to suffer personal and business losses, besides having damaged his reputation.
According to the plaintiff, in May 2019 following the defendant's negative report, herss car loan application was rejected and after investigation, she found that the defendant had given her a negative credit rating.
Akhtar also said that although the CTOS could have done so, it had chosen to ignore the plaintiff's claim that it had not provided accurate information about the woman.
"By choosing to be indifferent even after being informed by the plaintiff, the defendant has clearly breached the duty of care towards the plaintiff," he said.
-- BERNAMA
