A credit reporting agency owes a duty of care to ensure the accuracy of credit information, and failure to do so can result in liability for negligence, but not for defamation if the information is accurate.

JUDGMENT

Azmi Ariffin JCA:

The Suit

[1] On 29 January 2020, the Respondent/Plaintiff instituted a claim for negligence and defamation against the Appellant/Defendant in the High Court Kuala Lumpur.

[2] The Respondent's suit was founded on the Appellant's inaccurate credit information about Respondent concerning a debt due to a company known as Webe Digital Sdn Bhd (Webe) (formerly known as Packet One Network Sdn Bhd) leading to a loss of reputation, personal losses as well as business losses.

[3] The Respondent also alleged that the Appellant had breached its duty of care to her in the course of collating, reporting and publishing credit information concerning her to the Appellant's subscribers including financial institutions. Her creditworthiness amongst financial information had been affected by reason of the Appellant giving her a low credit score resulting in her inability to obtain financing from financial institutions

[4] The Respondent further alleged that Appellant defamed her in the course of publishing inaccurate incomplete, misleading and/or outdated credit information concerning the Respondent to third parties.

[5] The claim proceeded to a full trial with the Respondent calling three (3) witnesses and the Appellant one (1) witness.

[6] At the end of the trial, on 7 February 2024, the learned High Court Judge allowed the Respondent claim against the Appellant and awarded the Respondent general damages in the sum of RM200,000.00, interest at the rate of 5% and costs of RM50,000.00.

[7] Dissatisfied, on 8 February 2024, the Appellant appealed to the Court of Appeal via encl 1.

[8] On 1 April 2024, the Respondent filed a cross appeal in encl 18 seeking that the decision of the High Court be varied to the extent that the following reliefs should be granted:

(1) An injunction that the Appellant should obtain accurate and up- to-date credit information of the Respondent from Bank Negara, Companies Commission of Malaysia, agencies and/or other sources of credit reporting;

(2) An injunction that the Appellant should correct the Respondent's credit report to reflect her true financial standing and credit worthiness;

(3) A declaration that the Appellant had infringed the rights of the Respondent as a subject of credit reporting when it failed to collect, report and disseminate accurate and up-to-date credit information of the Respondent to third parties;

(4) General damages as the credit report of the Respondent prepared by the Appellant:

(i) was defamatory;

(ii) had been published in the Appellant's credit report; and

(iii) had affected the financial reputation, dignity, goodwill and standing of the Respondent and her business.

(5) General damages as the negligent misreporting and misrepresentation of the Appellant had resulted in financial loss to the Respondent and loss of opportunity to advance the Respondent's business;

(6) General damages as the Appellant's breach of duty of care had resulted in financial loss to the Respondent that are foreseeable and not too remote; and

(7) Aggravated and exemplary damages.

[9] For ease of reference, parties will be referred to as Plaintiff and Defendant as they were in the High Court.

The Parties

[10] The Plaintiff was at the material time the director and shareholder of Keranji Beach Resort Sdn Bhd situated in Pulau Perhentian, Terengganu Darul Iman and sole proprietor of Keranji Management which managed Keranji Beach Resort Sdn Bhd.

[11] The Defendant is a company incorporated under the Credit Reporting Agencies Act 2010 ("2010 Act") tasked with collating credit reports from various sources including the Central Bank and other agencies for purposes of dissemination to subscribers.

The Plaintiff's Case

[12] On 16 April 2009, the Plaintiff signed-up for a P1 WIMAX Home Plus Plan Service with Webe for a period of 24-months. The Pl WIMAX Service is to be provided to the Plaintiff's address at 24-2-3, Desa Villa Condo, Jalan Bukit Desa 3, Taman Desa, Off Jalan Klang Lama, 58100 Kuala Lumpur.

[13] The P1 WIMAX