Incorrect Unpaid Loan in CIBIL Report Hurting Your Credit Score? Know Two Effective Ways to Resolve Disputes

If you notice discrepancies in your credit report, you can resolve them through two primary methods: CIBIL’s dispute resolution process or the Reserve Bank of India’s (RBI) Integrated Ombudsman Scheme.

Credit card disputes and errors in credit reports have long been a concern for consumers. Inaccuracies in credit reports can lead to financial setbacks, such as loan rejections or unfavourable interest rates. Suppose you notice discrepancies in your credit report. In that case, there are two primary ways to resolve them: through CIBIL’s dispute resolution process and the Reserve Bank of India’s (RBI) Integrated Ombudsman Scheme.

Correcting Information in Your CIBIL Report

If you find inaccuracies in your credit report, you can initiate a dispute online with CIBIL. These errors may occur due to incorrect data reported by banks or financial institutions, account ownership issues, or duplication of information. CIBIL provides an online dispute resolution form, allowing consumers to raise concerns about such discrepancies. Once a dispute is submitted, CIBIL contacts the concerned lender to verify and rectify the errors. However, under the Credit Information Companies (Regulation) Act, 2005, CIBIL cannot make any changes to the report without confirmation from the respective financial institution. Learn more about CIBIL’s dispute resolution process at: https://www.cibil.com/consumer-dispute-resolution.

RBI’s Integrated Ombudsman Scheme – A Unified Grievance Redressal Mechanism

To further strengthen consumer protection, RBI has introduced the Integrated Ombudsman Scheme, also known as the ‘One Nation-One Ombudsman’ system. This scheme aims to streamline grievance redressal against entities regulated by the RBI, including banks, Non-Banking Financial Companies (NBFCs), and payment service operators.

For years, individual borrowers have struggled with errors in credit reports issued by Credit Information Companies (CICs) like TransUnion CIBIL, CRIF Highmark, Equifax, and Experian. These errors often led to financial hardships such as loan denials and lower credit scores. With the RBI’s Ombudsman Scheme, consumers now have a cost-free mechanism to file complaints against CICs if they fail to address discrepancies.

How to File a Complaint with RBI’s Ombudsman?

Consumers can now seek redressal through multiple channels. Complaints can be filed online at https://cms.rbi.org.in, via email at CRPC@rbi.org.in, or through RBI’s toll-free helpline number 14448. Additionally, complaints can be submitted physically by sending a filled-out form to the Centralised Receipt and Processing Centre in Chandigarh.

The RBI’s Ombudsman covers all regulated entities, including scheduled commercial banks, urban cooperative banks, and NBFCs with deposits exceeding Rs 50 crore. With this new framework in place, borrowers can expect faster resolutions to their grievances, providing much-needed relief to those facing financial distress due to erroneous credit reports.

Disclaimer: This article is for informational purposes only and should not be considered financial or investment advice.