Operations of credit reference agencies (CRAs) should be suspended until there are laws to protect the rights and privacy of consumers. We had in 1999 written to Bank Negara, the Ministry of Finance and the Ministry of Domestic Trade and Consumer Affairs proposing the introduction of laws to protect consumers. We had also asked Bank Negara to direct the financial intuitions not to use the services of CRAs until such protection is available to consumers
Once again we urge the government to legislate credit reference agencies (CRAs) - companies that provide credit information on individual borrowers. We had in December 1999 asked that CRAs be licensed, controlled and regulated.
One of the disadvantage of non-regulation is that non-financial institutions are using CRAs as a means to collect their payments and in the process jeopardize the individual’s loan application.
It is confusing to have different laws dealing with different types of consumer credit. Depending on the type of credit facility, it could be under the Pawnbrokers Act, or the Money Lending Act or the Banking and Financial Institutions Act or even the Hire-Purchase Act.
Cardholders have the right to know that whenever their lost or stolen credit cards are used by others they should (in most cases) not have to pay more than RM250. Yet oftentimes they end up paying much more.
This is because Bank Negara has not informed cardholders that they do not have to pay more than RM250 for fraudulent transactions carried out using their lost or stolen cards, when they had not acted fraudulently and had informed the banks about the lost or stolen cards as soon as possible.
This Guideline limits the liability of a cardholder to RM250 for unauthorised use of lost or stolen cards under certain conditions.