Please refer to my reply to a post by MR. AT given earlier. For convience I am reposting it below.
You may contact me for more details at - email@example.com
Please note that Banks and Credit Card companies are bound to issue a notice befor his/her name is sent to CIBIL for inclusion in Defaulters List. No Bank or Credit card Comany is following this procedure and they are flauting Regulations and RBI Circulars issued to them. Unfortunately RBI is not monitering these illegal activities of Banks and Credit Card Companies and thousands of persons have to suffer because their name appears in CIBIL's Defaulters List. Only way is to make written complaint to RBI at their Banking Operations Department and if no actions are taken to challenge in High Court by filing Special Civil Application (Writ Petition)
Cibil has become a commercial enterprise and even one settls the matter with Credit Card Company or Bank by paying the amount the CIBIL will state "settled" but the original entry of ' Default Status" will remain there. Any Bank therefore can see that there was adefault by the applicant. Cibil do not remove the Default entry in the manner as if it was never there. This is how CIBIL is working with a view to earn from such Credit Reports.
Time has come when all should unit to fight with CIBIL .
Any body who want guidence or help may contact me at - firstname.lastname@example.org - and I will help without charging any fees.