There have been a lot of hullabaloo about Ctos, an abbreviation for Credit Tip Off Service.

A search in their website , one can find that Ctos is essentially an electronic archive of information collated from gazettes, newspapers, court notices, and searches at the relevant statutory bodies or a 'credit lead' information system. Ctos also lists customer training; removal of records resulting from fraud or mistake; and recording case settlement as their company's main objectives.

As the saying goes, one is innocent until proven guilty. Is Ctos as evil and despicable as what the government and the media has made them to be? One cannot deny that the existence of Ctos has greatly impeded economic activities as banks are slow to give loans to people with a Ctos record, even though banks claimed that they do not rely solely on Ctos.

Ctos is merely an archive or a 'historical account'. The reasons for the loan fiascos are manifold. Firstly, the banks are relying blindly on Ctos information without doing further checking and verification on their own. It makes things worse when the banks still rely on Ctos' information when the subject has furnished the relevant proof of settlement.

Secondly, the 'victims' are crying wolf even though there is a recourse for them. As already explained by Ctos, one merely needs to show evidence of settlement. Most of all, there is a lack of understanding as to the actual function of Ctos.

One senior lawyer argued that it is socially irresponsible of Ctos to cause so much hardship to the borrower and that it is Ctos' duty to update their records. Ctos always insisted on the onus or burden to be placed on the borrowers to show proof of their settlements.

Deputy Minister in the Prime Minister's Department M Kayveas is relentless in his attacks and the cabinet seems to be intent on displacing Ctos by commissioning Bank Negara to provide the necessary credit ratings.

The golden question is why did the government wait for so long? Credit rating agencies like Ctos are not something new. With the whole cabinet against them and a flurry of legal suits, is Ctos ready for the onslaught?