CIBIL Report
Abhishek
(Querist) 26 May 2010
This query is : Resolved
Hi,
I applied for home loan from IDBI Home Finance.They sanctioned 55 laks to me out of which they disbursed 5 lakhs.When property got completed,I asked for further disbursement & they told me that my CIBIL report is not clear.
I admit that my CIBIL report is not clear,but it was not clear at the first place when I applied for loan & thn also they gave me sanction letter for 55 lakhs on the basis of which I took a flat.Now they are not disbursing my balance amount.
Let me brief you about my credit history
I was having 5-6 credit cards for which I went for settlement.Now I need to know how to get a clear CIBIL report.
Currently I am in US.Do let me know If I can hire a lawyer who can give me a clear CIBIL report of mine
Uma parameswaran
(Expert) 26 May 2010
You try to conduct a lawyer in your native place in India.
Abhishek
(Querist) 26 May 2010
Yes I think thats what I am looking for a lawyer in my native place India.
A V Vishal
(Expert) 26 May 2010
CIBIL does not classify any accounts as default accounts. It merely reflects this information after the Member has classified it as such. The Number of Days Past Due and / or Asset Classification as per RBI definition as submitted by Members is reflected in the CIR.The best preventive measure is to exercise good money management practices and make repayments on time.
In order to ensure a good credit history, it is important to re-pay your loans on time. Financial discipline coupled with prudent credit management and a good payment history will ensure that you enjoy all the benefits associated with having a good credit record-
* Making your payments on time will have the most significant impact on your credit record. It is important for you to maintain appropriate, reasonable and affordable levels of credit and ensure regular and timely re-payment of loans.
* Keep your total debt under control. If your total borrowings are significantly high, use some of your savings to repay some of your debt.
* Investigate your options in order to reduce your interest and other credit related costs, e.g., refinance an outstanding loan at fixed interest rates if there is a significant drop in interest rates or you discover a significantly cheaper option, etc. This will make your debt burden easier to manage.
* When you are seeking for a new loan or credit card, do it in a relatively short amount of time. You don’t want to have your report show that you are constantly looking for credit!
In the light of the above facts no advocate/professional can help you in improving your credit ratings and if some one says so then you are being taken for a ride.
Abhishek
(Querist) 26 May 2010
Thanks a ton Vishal for your explaination.
But what about my crdit card for which I made a settlement with banks.Recently I was reading an article fro RBI stating tht any settlement done with bank should not be considered as defaulter in CIBIL.Can you throw some more light on that.
Apart from that I also want you to review my Home Loan case.
I applied for home loan from IDBI Home Finance.They sanctioned 55 laks to me out of which they disbursed 5 lakhs.When property got completed,I asked for further disbursement & they told me that my CIBIL report is not clear.
I admit that my CIBIL report is not clear,but it was not clear at the first place when I applied for loan & thn also they gave me sanction letter for 55 lakhs on the basis of which I took a flat.Now they are not disbursing my balance amount.
Will appreciate your quick response
A V Vishal
(Expert) 27 May 2010
I think you better take up the case with the relevant superiors of the bank with the facts of your case alternately if there no change in their stand then take up the matter with the bank ombudsman.
A V Vishal
(Expert) 27 May 2010
Here are the probable reasons that amounts to getting your name wrongly entered in the CIBIL report
1. The bank has not yet sent an updated report to CIBIL. As per the rules, banks have to send updated data to CIBIL in 30 days but many times they failed to do so.
2. If in spite of settling all dues, a final settlement letter hasn’t been issued, chances are that you are still on the list.
3. Another reason that can put you on the list is when you do not get a loan clearance letter while settling the dues.
4. If the bank’s accounting policy isn’t in place, that could lead to getting your name in the list. It is possible that the bank hasn’t marked the settlement as a full and final payment and instead keeps marking the settlement amount as written off. A written off account is considered a defaulter.
Fortunately RBI has decided to take positive steps and in looking into the matter. According to recent newspaper reports, RBI is in process of framing a guideline to reduce customer complaints. The guidelines are meant to cover the treatment of settlement payment with the banks. It may also take a call on the delay caused by banks in updating the CIBIL records.
A V Vishal
(Expert) 27 May 2010
These donot apply in your case but still you can follow the procedure atleast now to correct your CIBIL ratings.
1. Personally visit the branch and talk to the bank officer rather than relying on verbal or email communication. Make sure you note down the name and number of the officer you talk to for any further communication.
2. Seek for an official settlement letter from bank to ensure the correct amount of payment, terms and conditions.
3. Try to make payments via cheques only. Also insist on proper receipt for the payments made.
4. On payment seek for “No Due certificate” from the bank along with a forwarding letter (with the bank officer’s name and contact number). Make sure that the letter is sent to the bank’s head office to ensure proper closure.
5. Three months from the settlement, request for a 'credit report' to ensure that the dues are indeed cleared.
6. In case of any irregularity in the credit report, immediately forward the relevant documents along with the report to the head office of the bank.
7. If for some reasons your case remains unsolved you have the option to go to RBI, Consumer court or Banking Ombudsman.
