Tuesday, September 8, 2009

The Power Of CTOS

On last Friday, a customer (Mr Bad Debt) who owed us about RM2K since 2005 suddenly called in an said that he would like to settle the outstanding. I was quite surprised as I never encounter before, where a customer who owed us for quite some time suddenly would call in and wish to settle all outstanding. For most bad debt cases, our Credit Control Department had to engage external collector and demand those payment from the bad paymasters. It's really not easy to get back those long outstanding amount.

3 days after that, a guy from a local financial institution called and said that he wished to know whether Mr Bad Debt had settled his long outstanding or not. After a short conversation, I learned that Mr Bad Debt wish to engage with financial services provided by the financial institution, but later his application was pending due to his company name and his name is in CTOS system. In case you have no idea what is CTOS, it is short form for Credit Tip Off Service Sdn Bhd. It is a lead information system in Malaysia where clients can gather information about their customers or potential customers. Usually financial institution would very much in need of this services before they decide whether they should or should not provide credit facilities to their customers. In most cases, if the applicant or customer name appears in CTOS and still has unsettled debt, they will not get the credit facilities. Who would take the risk, right?

Personally I think CTOS is a useful system where clients can check the financial status and other financial information of a potential customer before they decide whether they should provide credit facilities to the potential customer. It is hard to prevent bad debts from happening in an organization. So, if the potential customer had a sign of bad debts, it is better to check in details before let him sign on the dotted lines.

No wonder Mr Bad Debt so keen to settle his long outstanding.

9 comments:

  1. I read at news that the Govt don't allow bank to use CTOS anymore, true?

    There is a hoo ha abt CTOS last time

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  2. Hi Alan, yes, there was hooha about CTOS some time ago, but still a lot of organization prefer CTOS as it's more complete. Including my current company also using CTOS to check potential customer background before proceed with registration.

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  3. I don't think they can afford to take away the system without a replacement, imagine ppl with bad credit getting loan approved and subsequently defaulting the payment. Even an advance country like US with advance credit rating system in place can run into such havoc today because bank/finance institutions abuse the credit requirement in place.

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  4. Absolutely! Zen... there's another system, but somehow, corporates still prefer CTOS. I see that locally, in some cases, bank/financial institutions is abusing the credit facilities as well. No proper checking before approving the loan...

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  5. Hi Raymond, thanks for dropping by. Yes, I am aware of CCRIS :)

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  6. there is a way how to improve CTOS rating.

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  7. How about BASISNET? do u all heard before? it is a credit reporting agency right? i found the website at www.basisnet.com.my

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  8. Thank you so much for writing a lot of this good information! I am looking forward to reading more.
    Debt Recovery Singapore

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