Query on the way financial institutions using cibil score

Vinayaka Hegde (Querist) 18 October 2014 This query is : Resolved
Hi,

I have experienced and heard from some others. The financial institutions are using CIBIL score is the only reason reject loan. I strongly disagree with this. There lot of discrepancies and few are:
>> CIBIL does not verify the updates
>> Lot of times financial institutions does not update CIBIL correct information. Like if the overdue of the EMI is due to bank employee fault - CIBIL is not aware of.

For all these customers are suffering.

My query is can this be filed in SC under PIL? Help me bring this to public notice and get it resolved.

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P. Venu (Expert) 19 October 2014
A PIL may not be successful. However, in a specific case, a civil action could be taken if there is sufficient cause of action.

Rajendra K Goyal (Expert) 19 October 2014
Providing loan by a Bank / financial institution is credit decision based on the large no. of factors and no particular footrule can be adopted CIBIL being one of these decision making. If the CIBIL report is discrepant, the applicant can give proofs to the Bank and Bank generally considers these.