Kowamas claimed, however, that they were blacklisted as the banks had imposed additional charges without the knowledge of the borrowers or the cooperative.

“Kowamas has contacted the banks on the allegations and the borrowers’ Central Credit Reference Information System (CCRIS) status, and both parties (the banks and borrowers) are in talks to immediately resolve the matter,” it said in a statement.

Kowamas, which provides loans of up to RM200,000 to civil servants, had previously come under fire by a group of more than 20 borrowers who claimed they were blacklisted by banks despite having settled their debts.

The three borrowers had previously told FMT they were blacklisted under CCRIS despite having settled their loans.

This caused them to be unable to obtain loans to buy houses or get access to medical treatment.

They also claimed that it was difficult to get the cooperation of Kowamas’s management on the matter, causing them to take the issue to the media.

Entrepreneur and cooperatives development minister Ewon Benedick had previously said his ministry was investigating the case and would take appropriate action.

Malaysia Cooperative Societies Commission chairman Ahmad Norihan Jalal said the commission had been in touch with Kowamas to identify the cause of the issue, and that it had been cooperating.