When Amit Modi, a Pune-based network engineer, approached a bank for a home loan and the lender denied to sanction it, citing Credit Information Bureau of India (Cibil) reports that he had defaulted on one of the two cards he holds, he got a rude shock, as he holds only one card and he has paid his dues regularly.
After getting his Credit Information Report (CIR), he contacted the credit card issuing bank to rectify the mistake. Now, he hopes for a quick resolve of the case so that he can take a loan under the ‘teaser rate’ special home loan scheme that is likely to last for a few more days.
In an e-mailed response, a Cibil spokesperson told that a default rate of less than 0.001 per cent was competitive with bureaux of similar size and maturity globally. The bureau holds 15 crore credit card holders’ record.
As a credit information bureau, Cibil collects data from credit givers and creates a CIR. This report presents payment history from disparate institution data. Information merges when some parameters like name, age, date of birth and PAN overlap. For example, there can be confusion if there are two persons with similar names and staying in the same area.
FIRE-FIGHTING
Problem:
Wrong data in the report or it shows
erroneous loan or credit cards in your name
Solution:
Write to Cibil to rectify the mistake
Problem:
Cibil report classifies you as a defaulter
despite clearing the dues
Solution:
Write to the bank to update the data. This will
take at least four weeks. In case of emergency, get a no-dues certificate
Problem:
Classified as a defaulter for a loan or credit
card that you never availed
Solution:
Approach the bank to close the case. Preferably, correspond through emails
Problem:
Neither the bank nor Cibil responds to your queries for a month
Solution:
Report the case to Banking Ombudsman. Attach
the email correspondences with the bank
In case of Modi, he needs to contact Cibil and request the institution to rectify the mistake. If he does not, bankers said that none of the banks would give him a loan. “It is a norm to reject applications, if CIR shows the applicant as a delinquent,” said a banker, who forms credit risk policies at a private domestic bank.
Many banks accepted that there were faults in the system. However, they opined that the bureau was evolving. “It is the best tool available to judge a customer,” said the banker.
However, this is not the only problem that borrowers face while applying for loans or credit cards. Delay in sending data to Cibil by banks also creates problem. Bankers said that only 10-15 financial institutions send updated data to Cibil every month, while others do it on a quarterly basis. Many customers face rejection due to this delayed reporting. Take the case of Kolkata-based Amitava Roy. The bank reported him as a defaulter for an overdraft of Rs 1.2 lakh that he never availed of.
The biggest hindrance is that most banks do not accommodate error even if a customer has enough proof to show that he is not at fault. Shrikrishna Lele had a genuine dispute with his credit card company. However, despite showing the correspondences and documents he could not get a loan. “All the institutions insisted that I should get a ‘no due’ letter from bank,” said Lele. According to bankers such cases need consideration, but bank’s policy prevents such a move.
In case of an error related to data amalgamation, the only way for a customer is to write Cibil with relevant details and documents. If there is an error from bank’s side, the customer has to approach the bank to rectify the error. “If none of the institutions resolves the issue, the customer can always approach Banking Ombudsman,” said a regulatory source.
“The best thing to do is get CIR in advance even if you don’t have any loan or credit card requirement. By doing this, a customer can know in advance about errors pertaining to Cibil account,” said a banker. Currently, Cibil provides CIR reports through a manual process. A customer needs to send a demand draft of Rs 142 to get the report. However, the report will soon be available on internet. “The automated phase would be ready by the beginning of the next fiscal,” said the spokesperson.
Dear Sir/Madam,
I regret to inform you that I applied for Loan in Bank of Baroda. BON After finding out my name in CIBIL report. But never I taken any personal Loan from any Bank/agency. Therefore you are requested to provide the details of bank/agency so that I can discuss with them and clear my name from this mess. Regards, Sanjay Tyagi
Dear Sir,
I have 3 credit cards in total and one of them is from SBI bank. I did not use this card at all and as a precaution I kept the card in a locker. Due to various reasons i completely forgot about the card and as I had changed my home, I did not update the bank with my new address. There was a renewal amount due on feb2011 which never came to my notice due to all this. Last week I applied for a auto loan for a mere twenty thousand rupees. Loan agency after finding out my name in defaulter list has rejected the loan. I have cleared the outstanding dues on the card now. I am feeling very bad that for a very small amount of 900 rupees my name got smeared and has been listed in CIBIL report.
I am very desperate as I wanted to apply for a home loan in the future.I do not know how to clear my name from this mess. Please help me.
best regards
Manjunath
i cleared my full due payment.my bajaj auto finance ltd. aggrement no. is 413154425 daated 06.05.2008. taken against 21"onida tv.i got the noc from your side noc serial no is 46537.kindly send me some information about this and do the needful.plz mail me for any information.thanks
My name is vivek katara, i came to know my name in cibil defaulter list. May i know how it has happened. kindly send me some information about this. kindly do the needful.Please mail me or call me for any other information. Regards, Robert.s.dolare
Posted by: sandesh r chavan
September 01 , 2011, 19:58 IST
you need to purchase CIR from CIBIL i.e credit information report. Then you will come to know exactly the reason. you can then contact concerned bank / cibil to clear the descripancy.
My name is sanjib kumar dutta today from a finance company i came to know my name in cibil defaulter list. May i know how it has happened. kindly send me some information about this.
Dear Sir, I am Om Praksh Kanojia, came to know cibil has merged 3 other persons(similar Names) data with my CIR. I had contacted Cibil but nobody is telling the right way how to get my CIR corrected.
My CIR reflects 2 loans from ICICI, I got the copy of loan documents from bank which clearly shows loan doesn't belongs to me, and 1 loan from Barclays reflecting in my CIR, request pending with barclays to get the copy of loan documents since 23 july'10.
My CIR showing wrong PAN no., But it is showing right Passport No,and address.
What should I do Please guide me,
Regards, Om Prakash Kanojia
Dear Madam/Sir
I am Robert.Dolare holding a home loan account from hsbc since 5 years.
Recentely i am faceing a problem from cibil a outstanding amount of 16500 for the month of april 2009 is showing on my name.i have also visited the hsbc bank for the same but the is no due on my account its cleare says the bank but on cibil it shows since 6-8 month and no other bank is give me personal loan as well.i would request you to please fix my problem.kindly do the needful.Please mail me or call me for any other information.
Regards,
Robert.s.dolare
Posted by: Suresh
September 02 , 2010, 15:09 IST
Please make sure that the personal loan was rejected due to CIBIL. Because some PL rejects if the person have a other loan in hand. And in my case i had a default and i written to CIBIL through mail it also rectified within 45 days.....
It is to be noted that The constitution of India protect the right of her citizen. No agency (statutory or non statutory) is given the power to supply wrong information about the credibility ( for reputed person it is valuable as the life )of a citizen. If by mistake cibil gives it and another body accept it , it makes an embarrassing situation. It is their bounden duty to cure their mistake, (immediately)seek further remedies . Hence it proper for the concernd body to place the cibil report for the opinion of the client initially ,then to take a decision on his credibility.
On continuing error by any parties ,it is open to sue or seek remedies including incuding filing a writ petetion.
dear sir / mam
i hitesh m athawale has cleared my HDFC bank credit card outstanding in full i will get my clearence letter within 2 days i want to knw thwt when my name clearence will be updated in cibil
thanks®ards
Hiteah M Athawale
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