The Credit Information Bureau (India) Limited (CIBIL) maintains credit records of individuals such as payments related to loans and credit cards. The records are submitted by various banks and other financial institutions, based on which, CIBIL produces Credit Information Reports (CIR) and credit scores, on a monthly basis. Banks, typically, review credit scores of individuals to ascertain their capacity to repay loans. If you have a good credit score, there is greater likelihood of your loan getting approved by the bank. CIBIL, typically, gives a 3-digit score. Customers can get credit scores ranging from 300 to 900. Banks usually prefer a credit score of 700 and above to approve a loan. Given that a customer’s credit report contains all information pertaining to home loans, personal loans, credit cards and overdraft facilities among others, all top banks review it to ascertain the creditworthiness of an individual. It is, therefore, the customer’s prerogative to ensure a favourable CIBIL report.
Access to credit reports
CIBIL members such as banks and financial institutions enjoy and seek access to credit reports. However, there is a principle of reciprocity at work in that only banks which provide data to CIBIL are allowed access to credit reports. Credit reports can help banks decide on approving or rejecting loans and thereby, help build responsible credit behaviour. Banks cannot disclose the credit report of any individual to any entity.
Individuals can access their credit reports. According to section 21 of the CIRCA Act 2005, äny person who applies for grant or sanction of credit facility, from any credit institution, may request such institution to furnish him a copy of the credit information, obtained by such institution from the credit information company.” The Reserve Bank of India (RBI) has prescribed a fee of Rs.50 for the purpose as per the Credit Information Companies Regulations 2006 Act.
Errors in credit reports
The credit information report consists of five sections - personal information, contact information, employment information, account information and enquiry information.
Following are some of the errors you may find in your CIBIL report.
- Current balance not updated: The CIBIL report may not have recorded or taken into account the last or latest instalment of payment. CIBIL reports are produced every month. Customers get reports 45 days after applying for it. The aforementioned error, is therefore, very likely to occur.
- Inaccurate current balance: Customers should watch out for inaccurate current balance, which could mar their chances of getting their loans approved by premier banks.
- Amount overdue: Customers should ensure that they have no amount overdue in their credit reports, which indicates that payments have not been made on time.
- Wrong personal details: Customers should carefully check if personal details such as name, address, date of birth and PAN number do not contain any errors.
- Ownership: Customers should verify whether the outstanding loans mentioned in their credit report are factually correct.
- Duplicate account: Customers should check if multiple accounts are registered in their names in CIBIL.
Errors in Cibil Reports
While the aforementioned inaccuracies can be corrected, the following fields cannot be disputed in your credit report:
- Member Name (except ownership dispute)
- Control Number
- Account Number (except ownership dispute)
- Enquiry Date
- Date Reported
Company Credit Information Reports
CIBIL also produces the Company Credit Information Report (CCR). It comprises details of the company. Any errors in the company credit information report can be corrected or updated. Concerns, if any, can be redressed courtesy the process of Company Dispute Resolution. The following are the different kinds of disputes which can ensue in a company credit report.
- Account details
Any inaccuracies with respect to details such as name, address, phone number, asset classification and so forth regarding a company can be rectified.
- Ownership of account
If an account in your company’s credit report does not belong to you, you can raise a dispute in addition to cases wherein the entire report is inaccurate.
- Duplicate Account
A dispute can be raised if one account is duplicated in the company credit information report.
- Account details
Fields which can be disputed are listed below:
- Company’s name and address
- Branch address
- Telephone numbers
- PAN (Company)
- Proprietor/ Partner name
- Legal constitution
- City, State and PIN Code
- Bank remark
- Credit type
- Date classified as wilful defaulter
- Asset classification
- Sanction date
- Current balance
- Sanctioned amount
- Suit filed status
- Date of suit
- Suit amount
DUNS Number and Report Order Number
- DUNS Number: It is a unique identification number given to borrowers at a location.
- Report Order Number: It is an order number given to the company credit report by CIBIL.
How to file a CIBIL dispute request
Customers have to fill out an online dispute form freely available at the official CIBIL website. Customers need to have a control number for the purpose. The control number, a nine digit number found on the top right of credit information report, is created once a CIR is generated. It plays an important role in that CIBIL can identify the credit report (about which the customer has raised a dispute) with the help of the control number.
Following submission of the online dispute form, CIBIL will verify all the details with the concerned banks. Customers will get an email notification regarding status of the request (dispute). If the dispute is resolved, customers will get an updated report. Customers can initiate a second time, if they are not satisfied with the result of the first dispute request. CIBIL will then re-verify details with the credit institution. Customers can also write directly to Credit Information Bureau (India) Ltd, Hoechst House, 6th Floor, 193, Backbay Reclamation, Nariman Point, Mumbai 400 021.
CIBIL is not authorized to make any changes to the Credit Information Report (CIR). All disputes are sent to a credit institution, which ascertains if the dispute is legitimate. The changes have to be authenticated by the concerned credit institution, following which, the credit report can be updated. Customer is updated after the dispute is resolved. CIBIL takes a total of 30 days to resolve any dispute depending upon the time taken by the credit institution to revert to it with the relevant information. Typically, CIBIL takes seven days to update the data after it receives information from the credit institution. According to experts, customers would do well to apply for a new credit information report after errors have been rectified by CIBIL.
FAQs on How to Resolve Credit Report Errors
- How do I know when to report an error on my credit score report?
Once you discover the error, you need to check with the credit bureau reports from Equifax, CRIF Highmark and Experian, as it will help you to determine whether your error is in one bureau report or in all of them. If the very same error is found in all the four credit reports, then mistake has been made by the lender. The issue will pertain to a specific bureau, and the bureau must be informed about the same.
- When will an error in my credit report be corrected and updated?
Most credit institutions will submit data/ information to CIBIL every 30 to 45 days. If you raise a dispute with CIBIL, it might take up to 30 days for issue to be resolved. You can get your errors rectified by raising an issue with the concerned credit bureau. It will then verify this information with the credit institution and changes will be made after authentication.
- Why is it important to rectify errors that come up on my credit report?
It is very important to identify and rectify errors in your CIBIL report because it will help you maintain a healthy credit profile and also a good credit score. Any error that is not rectified can result in the drop of your credit score.
- What should I do in case the concerned credit institution does not properly respond to my complaints?
In case the bank (credit institution) does not properly respond to your complaints or is unable to sort out the issue, you can contact the banking ombudsman who then takes up the issue with the concerned lender.
- How do I raise an issue with CIBIL regarding my credit report?
You raise a dispute with CIBIL, by registering on the MyCIBIL portal. You can then get your CIBIL report from the TransUnion CIBIL website and raise requests on the portal.
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