My loan has been rejected because of the defaults reported against my name in CIBIL records. How do I remove my name from the CIBIL’s defaulters list?
CIBIL doesn’t maintain a defaulters list. We maintain the credit history of individuals as reported by Member Credit Institutions. Your loan application could have been rejected because of your CIBIL TransUnion Score and CIR. The decision to grant a loan is solely dependent on the credit policy of the Credit Institution. In order to check your credit history in detail and to identify any possible discrepancies/ errors that might be reflecting against your name, you can purchase your CIBIL TransUnion Score and Credit Information Report by Cibil.
In case you find any inaccuracies in your Credit Report you can raise a dispute with CIBIL to rectify them.
What kind of inaccuracies can occur on a CIR?
It is important for individuals to understand the various types of mistakes that can occur on a CIR because unnoticed inaccuracies can often result in reduced chances of a loan approval. Some of these are:
- Inaccurate current balance or amount overdue Credit Institutions generally submit data to CIBIL within a span of 30-45 days and if you happen to purchase your CIR within 45 days of your last payment of dues, it may not be updated. This leads to reflection of inaccurate current balance or amount overdue in your CIR. However, if the ‘Date Reported’ (date on which data is submitted by that lender) associated with that account is older than 2 months, and the payment made is still not reflecting then you can raise a dispute.
- Incorrect personal details Credit Institutions submit details of your credit account alongwith your personal information such as name, address, date of birth, PAN etc. CIBIL then creates your complete credit profile basis these details. Hence it is important to update your Credit Institution everytime there is a change in your personal information as incorrect personal details may lead to a wrong CIR being generated.
- Ownership If either some of the personal details or one or more accounts / enquiries on your CIR do not belong to you.
To initiate the dispute resolution process
I have Closed/Paid off the accounts and they are still showing on my report. How do I update my CIBIL report?
As per the Credit Information Companies (Regulation) Act of 2005, CIBIL cannot modify any information in the database without confirmation from the relevant Credit Institution. Credit Institutions submit data every 30-45 days to CIBIL and if you happen to purchase your CIR within 45 days of closure/ pay-off of your accounts it may not be updated in CIBIL records.To check the updated status of your account.
Why doesn’t CIBIL verify information with consumer before updating the report?
The information available on your CIR is as reported to CIBIL by Credit Institutions (CIs). The onus lies with the CIs to report the facts accurately to CIBIL. CIBIL’s responsibility lies in accurately updating and accumulating this information across CI’s. Incase you find any data inaccuracy in your CIR you can initiate a dispute resolution process with CIBIL and we will get the inaccuracies verified with the concerned CI. But any changes made has to be authorised by the concerned CI for it to be updated in CIBIL records to reflect in your CIR.
Can CIBIL make correction to the data or update/delete any information in the Credit Report?
CIBIL cannot make any change directly to your Credit Information Report (CIR). Only once the change is authorized and provided by the concerned Credit Institution can your CIR be updated.
What do I do once I spot a mistake on my Credit Information Report?
Please follow the steps below:
- You should submit a dispute to CIBIL as soon as you spot a mistake on your CIBIL CIR.
- You will have to provide your name, address, date of birth, control number (CN) and highlight the nature of the inaccuracy(s) on the ‘Dispute Request’ form.
Please Note: The Control Number is a unique 9-digit number found on the top right hand side of your CIBIL Credit Information Report and is created every time a credit report is generated. It is very important to provide this number to the bureau, as it helps identify the CIBIL credit report on which you would like to ‘dispute’ information.
For Dispute Resolution Process.
How do I raise a dispute? How much time does it take to resolve a dispute?
You can raise a dispute by submitting an online Dispute Resolution form. It may take approximately 30 days to resolve a dispute, subject to the time taken by the Credit Institution to respond.
What does CIBIL do once I raise a ‘Dispute Request’?
Once a request has been registered, CIBIL checks whether all the requisite details have been provided. CIBIL routes the dispute to the concerned Credit Institution (CI). Once the CI confirms the error and provides the correct data, CIBIL then updates the report and informs you accordingly.
To understand the Dispute Resolution Process in detail.
How much time does it take for my report to be updated once my bank gives you the correct data?
Once we get the corrected data from the Credit Institutions (CI), we update our records. Once we get the data from the Credit Institutions (CIs) it takes 7 days for it to be updated in our database.
How do I get the results of my dispute request?
You will get an email notification from us informing you of the status of the dispute request. If your dispute is accepted and dispute information is updated, we will send your updated report
What if I’m not satisfied with the results of my dispute request?
You can choose to contact the concerned Credit Institution (CI) directly. Alternatively, you can initiate a dispute request again and we will re-verify it with the relevant CI. Please note, we cannot make any changes to your CIR without the confirmation of the respective CI.
For how long will the details of the account reflect in my credit report?
As per the Credit Information Companies (Regulation) Act, 2005 governing Credit Information Companies, all accounts irrespective of their status (both Good Standing and Delinquent accounts) have to be maintained for a minimum period of 7 years from the date the account was last reported.
What is Identity Theft and how can I protect myself from Identity Theft?
Identity theft occurs when someone uses your personal information to apply for a loan or credit card. If this application is successful the individual has access to finance that you are liable to pay. The individual who has stolen your identity will probably not pay back the misappropriated funds. Hence, the lender will update your Credit Information Report (CIR) to say that you have defaulted on a loan. Unfortunately, in the event that your identity is stolen, you will be unaware that this has occurred. You will most likely only discover this when you purchase your CIR or when you apply for a loan and your loan application is rejected.
The easiest way to prevent Identity theft is to regularly monitor your credit history. Purchase your CIR 3-4 times a year and ensure that your credit history accurately reflects your credit usage and activity. If you see Enquiries (loan applications) that you have not made raise a dispute immediately.