16-Dec-2017 written by : FSI-Team
Rohan wanted to apply for a personal loan; he was advised to check his credit score before doing so in order to maximize his chances of getting his loan application approved. He applied for a free CIBIL Report and was surprised to find a mistake in his report which lowered his credit rating. There were a few delayed payments reported in the report but as per Rohan he had always paid on time. He decided to get in touch with the credit agency to get the same rectified. He was shocked when instead of the mistake being rectified his dispute was denied by the credit rating agency.
When an individual accesses his or her credit report and spots an error in it he/she needs to follow a laid out procedure for getting the mistake rectified. There are dispute resolutions forms available online which need to be filled; most agencies also have the option of sending them the complaint physically or through an email. These forms ask the complainant to fill in the basic details that help the bureau identify who the person is so that the corresponding credit report can be pulled out.
The complainant also needs to mention the nature of the dispute and the exact problem he/she has. Credit bureaus just report and collate scores based on the information that they get from various lenders so the credit rating agency cannot change or rectify any data that is mentioned in the report unless it is an error that has occurred while entering data at the rating agency. Thus the rating agency will get in touch with the corresponding bank to verify the claims of the complainant.
The credit bureau has to wait till they hear back from the financial institution before they make any correction in an individual's CIR. The bank will inform the credit agency whether the record needs to be modified, deleted or should be left as it is after it has verified its records and the rating agency will act in accordance with the information sent by the financial institution.
There may be various reasons for the credit report dispute being rejected. The first and the simplest could be that the complainant has not been filled in the correct information or some information is missing which means that the credit agency is unable to identify the actual mistake. Inaccurate personal information or control number or not listing the problem the correct way, can cause the dispute to be rejected.
As we said earlier the rating agency cannot update the information, they need to get in touch with the concerned financial institution. Thus if the FI or the bank which has to rectify the information rejects its then the rating agency cannot do anything but report the same to the complainant.
The first and the most obvious thing to do is, to check the details at your end if you have entered the details correctly or have you missed something. In case the error is at your end then rectify it and file a complaint once again.
It usually takes 30 days for the rating agency to get back to the complainant about the fate of their dispute. If the details are correct and you feel that the bank has not taken required action then you can file another complain with the credit bureau and wait for them to respond to it.
However if the above two do not yield any result and the mistake in your report is still not rectified, then you have the option of approaching the banking ombudsman appointed by RBI to get your dispute resolved.
So Rohan is not required to look for a personal loan for low CIBIL score after his dispute got rejected, he can resort to one of the above options and get the error in his report rectified. The removal of the error will help him better his scores and also his chances of getting his loan application approved.