The Credit Reporting Agency Bill
The government is planning to table the credit reporting bill for debate and if they get the approval of parliament both lower and upper house; it will be enacted into a law. Below are some facts about this bill. Dear readers, if you have reservation or if you want add anything regarding this bill, please email to firstname.lastname@example.org.
Purpose of this bill – Seeks to provide for registration and regulations of persons carrying on a credit reporting business that involves the processing of credit information.
(i.e) currently, 1 of the credit reporting agency in Malaysia – Credit Tip Off Services Sdn. Bhd – accused as giving wrong and inaccurate information about a customer which subsequently cause the customer to go bankruptcy.
This bill was adopted in New Zealand as the New Zealand credit reporting privacy code 2004 which is established under the Privacy Act 1993.
Clause 22 – defines some basic principles on the collection of credit information,however Clause 22(3) has a far reaching implication on the customers in Malaysia. This sub-clause provides “the collection and use of credit information by a credit reporting agency under subsection (1) shall not require the consent of the customer concerned”
(in contrast with New Zealand Code à the consent of the concerned customer is required – ‘where a credit reporter collects the information directly from the individual concerned’)
Clause 23 – requires the credit reference agency to provide a notice to the customer on the processing of credit information.
The issue here is the clause 22(3) – which provides that credit reporting agency do not require the consent of the customer when they are collecting the information of the customer – and consent is a fundamental right for every living person. Since under the clause 22(3) provides that the agency don’t need consent from the customer then what’s the point the agency need to send notice to the customer when they are already start to processing the particular customers information as provided under the clause 23? Therefore, the clause 22(3) should be amended, where the consent of the customer is compulsory before the agency starts to collect the information.
This Credit Reporting Agencies Bill has adopts the New Zealand Code concepts of Summary of Rights. In New Zealand, the written notice to be sent to a customer must contain a summary of the consumer’s right. These rights are established by the Summary of Rights.
In New Zealand, this summary of rights is established and derived from the code. However, in Malaysia, the summary of rights, as provided under clause 2 is to be determined by the Registrar (the executive/ government). The question arise here is can rights be created by executive? Therefore, this clause should be amended and the government must list down the rights same as the New Zealand Code.