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
In 2003, the then Minister in the Prime Minister’s Department , Datuk Seri Dr. Rais Yatim had also called for greater protection for consumers from CRAs like Credit Tip-off Services Sdn Bhd (CTOS) because of complaints of incorrect information held on borrowers.
It is regrettable that in all these years, no action was taken to protect consumers. How many consumers have suffered because of inaction by the authorities?
Only now has Bank Negara instructed financial institutions not to use the services of CTOS (a company which is reported not to be even registered with the Companies Commission of Malaysia.)
Operations of CRAs should be stopped immediately. CRAs can only resume their activities once there are laws in place to protect consumers.