03-Feb-2017 written by : FSI-Team
Recently we met Rajesh Kumar. His was a clear cut case of misreporting in CIBIL. This is what he had to say, "My personal loan application was denied as my CIBIL report showed that I had settled a Standard Chartered Bank loan in 2005. Till date I have never had any relationship with Standard Chartered Bank. It is completely false and baseless. What can I do to correct it?"
Indian people are slowly opening up to the idea of credit reporting. Yet, there is still a long way to go before everyone can read and understand their CIBIL reports accurately. On top of that, an average Indian would find it incredibly taxing to spot incorrect details recorded in credit report. It can make them jumpy and restless. The good news is there is an easy DIY process to get it corrected. Here is a simple three part guide on the way forward should you be stuck in a similar situation.
By now you must have checked your credit report and matched all details on the report with the actual number of open credit accounts, as per your knowledge. So you have spotted that there are one or more credit accounts that do not belong to you. Initiate a remedial action by raising a CIBIL dispute through their website. The turnaround time for CIBIL to resolve any dispute is not more than 30 days. To make matters a bit sunny one must note that CIBIL does not charge a penny for this service.
1: To effectively manage the inaccuracies on your report, firstly, thoroughly identify all the errors. Then fill out the online dispute resolution form given on CIBIL's website. Upon receiving the request, CIBIL gets in touch with the lender in question directly and asks it to confirm whether the query raised is true or false as per lender's records. The lender sends a written reply to CIBIL.
Incase the lender accepts fault then the record is set straight immediately. However, if the lender states that the record sent by them is true as per their records then CIBIL will not make any change in the report. They will send an email to the customer with respect to the status of the dispute. This entire process takes about 30 days.
2: While you have raised the dispute with CIBIL, simultaneously send an email or letter to the credit institution in question that is any form of written communication to hold record of your communication with the lender. Like, we asked Rajesh to contact Standard Chartered Bank through email and let them know of the blunder they have done. Most times it helps expedite the entire process.
Oftentimes it happens that the lender ignores emails of non-customers. Like StanC did not reply to emails as Rajesh is not a customer of the bank. But the key is stay focussed and determined.
3: This is perhaps the most important thing to do. Constantly monitor the progress of the dispute. Regularly follow up with the lending institution to seek a proper clarification in writing. For example in Rajesh's case, StanC did not respond to his query initially. We asked him to send reminders to the bank continuously. After a couple of emails exchanged between the bank and Rajesh, the bank finally acknowledged their mistake and agreed to send a valid update to CIBIL.
Before month end, Rajesh's score had improved considerably. Just one bad remark was removed and it was enough to thrust his score several points upwards. This time he applied for an Axis Bank Personal Loan and he was approved for it without a hiccup.
Here are a couple of quick reasons on why you should attempt to have an error free credit report:
CIBIL is only a custodian of customer data. It cannot add or delete rows of records from the report sheerly because a customer has requested it to so. It can only act as per the information sent to it by its member credit institutions.
Correct data is the customer's responsibility. With accurate information, the credit score also remains steady and is a fair reflection of one's credit history. Customer can make use of a high credit score to access credit at any time, should a financial emergency befall.
Remember: don't always aim for a high credit score. Rather, aim for clean and good remarks in credit report. A good score will simply follow.