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Aditya Prakash Choudhary (CM)     06 February 2012

Remedy against mistake made by cibil/bank

Hi friends,

I am new to "Lawyers Club". I have a query in mind. Hopefully you will be able to help me out.

Recently, I applied for a Housing Loan, which was declined by the Bank due to some incorrect information in my CIBIL report. The report says, I took two loans of Rs. 29191/- on 04-08-2000, one of which was written off on 15-03-2002 and another one on 10-02-2005. BUT THE FACT IS I NEVER TOOK SUCH LOANS.

The CIBIL website says, they will normally take 30 days to rectify the mistake. I have a deadline of 29-02-2012 to make payment ot the Builder, failing which, Builder will start applying interest @18% pa.

I think, either CIBIL or the Bank has made a mistake at their end. WHAT IS THE REMEDY AVAILABLE TO ME? HOW I CAN MAKE THESE TWO i.e. CIBIL & BANK MORE RESPONSIBLE TOWARDS DATA MANAGEMENT, SO THAT THEY DO NOT COMMIT SUCH MISTAKES? IS THERE ANY PROVISION FOR IMPOSING HEAVY PENALTY ON THESE ORGANIZATIONS BY RBI/CONSUMER COURT FOR SUCH MISTAKES?

Thanks & regards

Aditya Choudhary 



Learning

 26 Replies

Advocate M.Bhadra   06 February 2012

Granting of loan is the own discretion of Bank and borrower is not a cosumer in terms of Consumer Protection Act,however you can send a complaint to the Banking Ombudsman and higher authority of the said Bank.

Aditya Prakash Choudhary (CM)     06 February 2012

Dear Mr. Bhadra,

I have nothing against the Bank, which has declined my loan proposal. They have done so as per thier own norms.

But I am looking for remedy against CIBIL, which is showing wrong data and against that Bank (Name unknown as of now) which has forwarded wrong data.

Thanks & regards

Aditya P Choudhary

Kumar Doab (FIN)     06 February 2012

RBI has set some guidelines.

1.The bank which has declined your loan application is under obligation to supply you the reason for declining in writing. This bank has to supply you certified copy of your loan application also. If the BM denies you may remind him that you can approach RBI. Submit a letter with your demand and obtain acknowledgment. You can issue a notice/legal notice.

From this bank has you shall come to know the details of the bank which has declared you a defaulter.

2. You are within your rights to obtain your credit report maintained with credit rating agency (ies). RBI has allowed banks to charge a fee not exceeding Rs.50/. You may enquire the fee from bank, and pay by cheque along with a letter asking for credit report from CIBIL by registered post and obtain acknowledgment of letter and cheque from BM of the bank. In your credit report ask specifically from name of the member (bank/NBFC) to be declared which has declared you defaulter. This credit report shall become the basis of your complaint and correction if any.

3. If these banks are adamant you can report the matter to Nodal officer of the bank by email and demand reply with soft copy of the credit report within say 2 days.

You can also use your approach and resources and obtain your report from and finance/loan companies which also have access to credit reports.

4. You can submit a stern letter to local BM of the bank , with a copy to chairman, nodal officer of the bank, which has declared you defaulter to correct the error say within 2 days and supply you a letter admitting error and begging apology at once and corrected CIBIL report within say next 2 days. The offender bank is legal obligation to do so.

You can also approach these officials on phone for faster response. You can issue a notice/legal notice.

 

5. AS rightly pointed out by Mr. Bhadra you can sue the offender bank thru BO or Consumer Forum but you shall need credit report from CIBIL in which you are declared defaulter.

These  banks and concerned officials do not deserve to be pardoned, therefore lodge a complaint with chairman and demand to supply you the name, designation, department, address with pin code, email id, phone number with STD code, mobile number, permanent address of the erring officials.

6. If you apply to CIBIL you have to pay Rs. 450+ and it shall take more time.

RBI website has all circulars on guidelines to the banks.

 

Aditya Prakash Choudhary (CM)     07 February 2012

Dear Mr. Doab,

Your comments are very informative. Thank you very much indeed.

Thanks once again. 

Aditya Choudhary

J. P. Shah (RTI & CONSUMER ACTIVIST)     07 February 2012

You can obtain your report directly from CIBIL by following guidelines posted on its website. They are charging nearly Rs.150 for such report. After you get the report, you can take up matter with reporting bank. Please also follow:

Bank problems:

https://www.box.net/shared/12ijyj35xivah5ft3tt8

Pandiyarajan (Team Lead)     24 May 2012

Dear Sir / Mam,

I have applied for home loan in LIC and my loan got rejected because when they pulled my report using my pan card and date of birth they could see a different consumer name and other loan information(Including Credit card info)  which does not belongs to me. It is showing around 30 lakhs and some auto loans. I have closed 2 of my personal loan and my auto loan. I have no dues in my credit card for which i have NOC from bank.  When I see the report I could see 3 persons loan details are merged  in CIR report. I have raised the dispute request immediately on 20.4.2011 and CIBIL told that they have updated the correct data. But still the other person data is reflecting and the data in not accurate. on 26.4.2012 I have requested for CIR report and paid Rs.470  via online and as per  CIBIL it will take 10 business days to provide the report. I have sent my id proof and address proof via courier to CIBIL and they acknowledged and till date I haven't got my CIR report and no proper response from CIBIL on the same. Bottom line is - Still my name is not reflected in CIBIL report and LIC need my name to reflect and all the false data to be removed in my report then only my loan will be approved. I have all the NOC for my loans. Could you pleaes help me on resolving my issue. If it is going to get more delay then I need to pay penalty to my builder. Please help!!

Thansk,

Pandiyarajan.J

+91-9003076137

raja_mca04@yahoo.com

Kumar Doab (FIN)     27 May 2012

You have posted that:

--"I have requested for CIR report and paid Rs.470"

Customer can avail the credit report by paying a fee of Rs.50+taxes from the institution. The bank has access to credit report and report can be supplied much faster also.

While you ask for the report demand name of the member to be displayed which has reported you to the CIBIL.

Thus you shall come to know who has reported false details. You can proceed against these members.

Banks have their compensation policy and are expected to compensate the customer thus avoiding the burden of litigation. Once bank accepts its fault and offers to compensate it is customer's discretion to accept or reject the amount of compensation.

--The CIBIL shall ask the member to update the details. The member e.g. bank has to correct or update the detail. Till that time CIBIL may remain silent.CIBIL shall supply updated report.

Customer shall loose the right to know which institution has updated false information. Customer should agitate to the defaulter institution and make them pay thru their nose.

You may find the attachments useful.


Attached File : 199467878 cibil report charges mainmenuenglishlevel-3 cibil.pdf, 199467878 right-to-cibil-credit-report-india.pdf, 199467878 rbi circular bank to obtain consent for sharing data with cibil.pdf downloaded: 949 times

Kumar Doab (FIN)     27 May 2012

You may find the attachments useful.

 

--The status is usually updtaed as:Status: Options include: Suit filed, Willful default, Suit filed (Willful Default), Written off, Suit filed and written off, Willful default and written off, and Suit filed (willful default) and written off.

These are taken as adverse by the institutions.

---Rectifying Information in your CIR


Q.14. How does an individual rectify information in his/her CIBIL Credit Report?

You should follow the below process for rectification of credit information in your CIBIL Credit Report.

  • Step 1: Access your Credit Report from CIBIL. Link to the section- 'Access Your CIBIL Credit Report' Please refer to the section on 'Access Your CIBIL Credit Report'
  • Step 2: Identify the error in your report and write to consumerqueries@cibil.com with your queries.
  • Step 3: Contact the related credit grantor(s) immediately and inform them of the error by providing them with the necessary proof of having cleared your dues
  • Step 4: Once the credit grantor validates the error (s), they will re-submit the updated information to CIBIL.

Please remember that CIBIL does not make changes to any information on its own. It is only a custodian of information received from credit institutions. CIBIL is permitted to make changes to your credit information only when it is confirmed by the credit institution(s).

 

Since CIBIL shall not correct the report you need to know the defaulter institution and chase them.


Attached File : 199467878 welcome to cibil.htm, 199467878 welcome to cibil 1.htm downloaded: 434 times

Pandiyarajan (Team Lead)     29 May 2012

Deear Sir,

Thanks a lot for your valuable response!!. I have approached ICICI bank and requested for my CIR report. But they told that they don't have the facility to provide CIR report. And they told that they can give only my loan details which I have availed in ICICI bank. CIBIL asked me to approach the credit institution to correct my Personal information and I checked with ICICI bank manager he told that my personal information with my savings and loan account are correct and asked me to contact CIBIL to fix the issue. Later CIBIL asked me to contact SCB in which I don't have account. I paid Rs.470 via online to get the CIR report 1 month back and CIBIL is not providing my report. I am really stuck and not able to avail my home loan. Please advice.
 

Kumar Doab (FIN)     30 May 2012

--You can also move consumer court against the bank and claim compensation if bank has wrongly reported your name as defaulter to cibil.

You may obtain name of the bank/member which has reported you to the CIBIL.

--Cibil has an online redressal mechanism for handling/correcting the mistakes in CIBIL Credit Report , which is called Dispute Resolution

You may fill the :

 

CIBIL Online Dispute Resolution Form

--ICICI bank has mentioned it on its website.

  A customer complains that CIBIL's report generated by X bank / financial institution does not show the details of other loans / credit cards that the customer maintains with other banks and/or financial institutions.
 
CIBIL's report generated by X Bank will show all the loans/cards relations the customer has with various banks, but without the identities of the other banks being indicated. In other words, X Bank officials will not know the name of the other banks with which the customer has loans/cards relationships. The names of the other banks will appear as “Not Disclosed”. This has been done to ensure privacy. However the customer can contact CIBIL at info@cibil.com with the enquiry control number of the credit report (provided by X Bank) to find out the details of the member bank that has reported a particular transaction.
Can a customer's repayment track be overwritten in Credit Bureaus data base?
Member banks report data to credit bureaus on a regular basis, thus in case of a delinquent customer, if a customer has cleared all of his/her over dues in the current month the repayment track in his/her credit report will be updated from current month onwards. Please note that the records for the previous period will, however, continue to reflect the past behaviour.

Attached File : 627172296 cibil icici.doc, 627172296 rbi banks to provide credit reports to customers.doc downloaded: 113 times

Aditya Prakash Choudhary (CM)     19 June 2012

Dear all,

I thank you all for your valuable suggestions and time. I had taken up the matter with SBI Cards and RBI Ombudsman. The SBI Cards has confirmed to RBI Ombudsman that they have written to CIBIL to remove the incorrect data.

I just wish "there should be heavy penalty to the Bank/FI/Card Issuing organisation for providing wrong information to CIBIL". The penalty so collected may be credited to consumer protection fund.

Thanks again 

Kumar Doab (FIN)     19 June 2012

@Mr. Choudhary,

You may obtain the copy of incorrect CIBIL report, and certified copy of SBI Cards & Payment Services Private Limited (SBI card) statement stating that it has written to CIBIL to correct the error, copy of its communication to CIBIL. Demand that SBI cards submits corrected report to BO and you. Obtain corrected report.

After getting these documents you may and you must file criminal defamation case. Let them run and plead to you. They are not fit to be left to loose around.

Pandiyarajan (Team Lead)     19 June 2012

Dear Sir,

I have paid Rs.470 for CIR report via CIBIL website. And CIBIL is not providing my report for more than 40 days and just replying me stating that we have raised a dispute and give us some more days. They have told me before 20 days that we will revert to you shortly and still after 40 days they didn't got back to me and not refunding my amount. When I provide the   valid documents for ID and address proof CIBIL accepted.Due to delay in providing my report later email they are asking me the same documents.Its really a pain to follow with CIBIL for more than 40 days. Can I file a case against CIBIL for not providing the report ?. And they are not providing the reason for the delay. Please advice.

Thanks,

Pandiyarajan.J

 

 

 

 

Susang Tharemal (Consultant)     29 June 2012

 

Please do visit www.rectifycredit.com. They provide advisory services in rectifying your credit score. I have been helped by them before for recdtifying my CIBIL score & my home loan got processed.


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