KUALA LUMPUR: Credit reporting agencies (CRAs) are only permitted to access loan information in the Central Credit Reference Information System (CCRIS) with approval from Bank Negara Malaysia.

According to the central bank, CRAs need to meet several conditions in order to get access.

"These conditions include maintaining consistent compliance with the Credit Reporting Agencies Act 2010 and establishing strong policies and procedures to safeguard customer information confidentiality, along with ensuring diligent handling of such data.

"It is important to highlight that customer consent is required prior to the disclosure of any information pertaining to their loan accounts.

"For example, customers' consent for the disclosure of their credit information must be obtained at the point of loan applications and/or when they directly engage the services of credit reporting agencies, by purchasing credit reports," it said.

Bank Negara said CRAs must consistently exhibit adherence to rigorous measures ensuring the confidentiality and security of the CCRIS data.

CRAs granted access to CCRIS information must conduct an annual audit to verify their compliance with confidentiality and security controls for data.

"Continued access to CCRIS data is subject to a satisfactory audit report along with an attestation by their board of directors that they are complying with these stringent requirements on an ongoing basis.

"It is important to keep in mind that credit scores can serve a useful purpose in the economy. First, by combining relevant credit information from various sources into a useful metric on creditworthiness, credit scores can help lenders, especially smaller non-bank lenders, make informed and faster credit decisions." 

Moreover, it stated that credit scores aided individuals in comprehending their creditworthiness and enabled them to take steps to enhance their scores.

"This can foster a stronger credit culture and help improve financial inclusion. Finally, credit scores can also facilitate non-bank financial transactions such as business transactions with suppliers, and rental transactions between tenants and landlords," said the central bank.

https://www.nst.com.my/business/corporate/2024/03/1031799/ccris-access-credit-reporting-agencies-only-bank-negara-approval