KUALA LUMPUR: CTOS Digital Bhd today said it has further filed a stay of execution along with its appeal of the whole decision of the KL High Court on March 8, 2024.
On Feb 7, 2024, the Kuala Lumpur High Court Judge Akhtar Tahir awarded general damages in the sum of RM200,000; interest on the judgement sum at 5 per cent; and costs of RM50,000 to businesswoman Suriati Mohd Yusuf for inaccurate credit rating.
CTOS Digital in a filing with Bursa Malaysia Securities Bhd said it has been informed that its appeal stands a strong chance of success.
The company said that there is no obligation to safeguard reputation, as any harm to reputation should be addressed through defamation claims.
"The High Court did not find that CTOS Data Systems Sdn Bhd (CDS) had defamed the plaintiff. It found, instead, that CDS had breached its duty of care to the plaintiff," it added.
Furthermore, it noted that the judge's remark on the lack of a provision in the Credit Reporting Agencies Act 2010 (CRA Act) empowering CDS to develop a credit score was a conclusion reached without affording CDS the opportunity to present its case fully, as it was not originally part of the plaintiff's claim.
"In this regard, it was not in evidence that the plaintiff had lodged a complaint with the Registrar under the CRA Act against CDS for having acted in contravention of the said statute," the company added.
Additionally, CTOS Digital stated that the Credit Score is included in MyCTOS Reports, and there is no indication presented to the High Court that these reports were disseminated to third parties in a manner that could be construed as publication for defamation claims.
"As noted above, the High Court did not find in favour of the plaintiff in this regard," it added.
Furthermore, CTOS Digital highlighted that the Judge did not issue any injunction against CTOS Data Systems (CDS) regarding its credit reporting activities, specifically concerning the inclusion of a Credit Score in credit reports.
"The Judge, however, did make an incidental observation that the CRA Act did not have any provision empowering CDS to formulate a credit score or to create its own criteria or percentage to formulate the same. "This was not an issue raised by the plaintiff in her Statement of Claim, which was more concerned with whether CDS had exercised due care in reporting her credit information and that the Credit Report published by CDS was defamatory," it added.
CTOS Digital mentioned that as the issue was not raised, CDS was not given the chance to clarify the regulatory framework's requirements and its complete adherence to them.
CTOS Digital's share price closed unchanged at RM1.28 as at market close.