Is your bank GUILTY?

Here are the common problems people faced while pulling out their credit report and how to solve them!

When a popular public sector bank started the teaser rate for car loans, Inder Sakpal, a Mumbai-based banker was among the early birds to apply for a loan. He was in for a rude shock when his loan was rejected for overdue of two loans, which he had closed about a couple of years ago.

"By god's grace I had kept the copy of no-due certificate safe. I scanned it and wrote to CIBIL and also got in touch with the bank, which had given me a loan. I had to really follow up with CIBIL and the bank to update the loan closure details," said Sakpal.

The Credit Information Companies Regulation Act 2005 mandates banks to submit customer data which is accurate, complete and correct. However many a times this does not happen and you will find errors in your data reported in CIBIL report.

CIBIL, India's leading credit information bureau collects data from banks across the country. So the basic source of information is banks. Many a times there is a time lag when it comes to banks updating information of its customers.

So here are the common problems people faced while pulling out their credit report and how to solve them:

Problem: Spelling mistakes in name, age, date of birth, address, telephone number and mobile numbers

Recourse: Write to CIBIL. You can attach a scanned copy of your ID or address proof if need be. In most cases CIBIL will get back to you saying which particular bank has given information to you. You will have to get in touch with that bank to update your CIBIL records.

Problem: Loan or credit card, which you do not hold.

Recourse: Raise a dispute on CIBIL. Typically CIBIL will take 4-5 weeks to find a solution.

Problem: Report claims that your loan or credit card account is overdue.

Recourse: Write to CIBIL and attach a scanned copy of the no-due certificate. Make sure you get in touch with the bank to close the account and ensure that the bank updates your record with CIBIL.

Problem: Neither bank nor CIBIL responds to your queries.

Recourse: Write to Reserve Bank of India banking ombudsman. Attach the copies of your correspondence with CIBIL and your bank.

Data is prone to errors. So having something wrong in your credit score is no big deal. Do not fret if you spot a mistake in your CIBIL score. 

The author is a credit expert with 10 years of experience in personal finance and consumer banking industry and another 7 years in credit bureau sector. Rajiv was instrumental in setting up India's first credit bureau, Credit Information Bureau (India) Limited (CIBIL). He has also worked with Citibank, Canara Bank, HDFC Bank, IDBI Bank and Experian in various capacities.