07 August 2007

Insolvency dept will compete with CTOS


PUTRAJAYA: The Insolvency Department of Malaysia (JIM) is set to compete with credit information service provider Credit Tip-Off Service (CTOS).

On the cards are links between the courts, National Registration Department (JPN), Immigration Department, JIM and Bank Negara’s Central Credit Reference Information System (C-CRIS).

Deputy Minister in the Prime Minister’s Department Datuk M. Kayveas said JIM was improving its systems to quicken a credit search process and provide updated information.

"Once this is ready, I think people will revert to it and will not use CTOS any more.

"We will actively promote JIM and get people and banks to learn more about it," said Kayveas, whose portfolio includes handling insolvency matters.
C-CRIS does not provide information on bankruptcy, but only on people’s loan obligations, to banks.

Kayveas said the online link with JPN would allow search-ers to verify a person’s name, MyKad number and whether he was alive.

"There have been situations in CTOS where the person’s name and MyKad number are available, but the person is dead," he said yesterday.

"The link with the courts will make information available within the same day on whether a person has been declared a bankrupt or has been discharged from bank-ruptcy."

He said the government would promote JIM among banks and the public as an alternative to services provided by private companies like CTOS.

Also in the pipeline are computer-generated statements from JIM which can be downloaded, printed and used as valid documents.

Kayveas added that JIM’s services at RM10 per search were cheaper than that offered by CTOS.

While JIM may not have such a wide database on debtors, he said this was because the department did not record "small" debts.

Kayveas said CTOS had "bought" information on debtors from companies to record in its database, making a cut when debtors settled their bills.

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