CTOS Digital Appeals Straight Without Losing Money to Businesswomen Due to Low Credit Scores

The third division of the Court of Appeals ruled today that CTOS Digital (CTOS, 5301, Main Board Technology Co., Ltd.) appealed directly to overturn the High Court's ruling, which is to pay compensation to customers for losses suffered due to poor credit scores.

CTOS Digital said it will issue a statement later today to explain the latest developments in this matter.

On March 11 of this year, a 43-year-old businesswoman sued CTOS Digital Systems for negligence and breach of fiduciary obligations, alleging that CTOS digital's inaccurate credit ratings caused damage to her personal reputation, finances, and company business.

The businesswoman said that when she applied for a car loan in May 2019, she was rejected by the bank due to negative reports provided by CTOS. She later discovered that the report contained inaccurate data, which in turn led to an erroneous negative rating.

The businesswoman also alleges that the credit score given to her by CTOS Digital was too low, causing financial institutions to lose confidence in her. As a result, the High Court ordered CTOS Digital to pay RM0.2 million in damages and RM0.05 million in court fees to the businesswoman.

Meanwhile, the High Court ruled that CTOS Digital did not have the right to create credit scores.

The judge stated that the main function of CTOS is to collect, record, preserve, and share information. However, he believes that CTOS is beyond its statutory function to establish credit scores.

After the High Court handed down the above ruling on March 11, the CTOS digital stock price fell in response the next day (March 12). The management urgently convened a briefing with analysts and media on the same day to defend the company's functions and deny that the female owner had received an unfair rating.