Dear Friends,
My name is Ankur Srivastava, Resident of Lucknow, Uttar Pradesh. I am an Assistant manager in British Petroleum and stationed in Ahmedabad. In the US there is a federal law giving every citizen a legal right to ask for his/her Credit Scores/Credit History (Of Credit Rating Companies mainly Equifax, Transunion and Experian in US) once a year completely free of cost. Financial Organizations in US are also bind by law to inform the reason of rejection of application of every applicant whose application for credit (eg; a loan a credit card etc.) has been rejected and which may have a negative impact on the applicants credit scores. I want to know, is there any law in India, binding banks and other financial institutions to share the reason of rejection of a credit application by them? If an application for loan, credit card is rejected, this imparts a negative impact on CIBIL scores in India, when we usually ask bank about the reason of rejection, they always answer saying that due to bank's policies they cannot disclose that why the application was rejected. We cannot even check our credit scores without paying money to CIBIL. CIBIl has been granted with rights to accumulate data about our financial conditions, debts, incomes etc. based on which Banks and other lenders decide whether the applicant should be granted credit or not but we are never told the reason why the application has been rejected, if it is ever rejected. In US there are laws such as Equal Credit Opportunity Act securing credit seekers' interests but in India is there any law like this which basically grants right to a credit applicant to know the reason of his rejection of application or denial for loan/credit? If not, what can be done?
