With regards to the recent High Court matter between Suriati Binti Mohd Yusof and CTOS Data Systems Sdn. Bhd where judgement was made in favour of Suriati, parent company CTOS says it has basis for an appeal and has lodged a Notice of Appeal to the Court of Appeal.
The company said there was no material losses anticipated as a result of this matter and seeks to clarify on points that the CDS is allowed to do Credit Scoring and it is an approved product by the Registrar of Credit Reporting Agencies, under Ministry of Finance.
This comes after it was fined for giving a wrong credit rating which led to a ruling issued by the High Court in Kuala Lumpur today against for it to pay a businesswoman RM200,000 in damages. In passing judgment, Justice Akhtar Tahir said the credit rating agency was purely a repository of credit information and has no powers under the Credit Reporting Agencies Act 2010 (CRAA) to formulate its own credit score.
The company in a statement said all CDS products & solutions are approved by the regulator (Registrar Office) before they are launched to the market. And that Credit scoring is standard practice in the industry and is offered by the vast majority of Credit Reporting Agencies and around the world and including Malaysia.
It added that CDS is in a highly regulated industry and has been operating and working closely under the supervision of multiple Regulatory authorities. The regulatory authorities audit CDS on an annual basis and the CDS license is renewed every year.
CDS said it has submitted an appeal to the Court of Appeal because based on legal advice and believes there are strong grounds for appeal.
