CIBIL Dispute: All You Need to Know About CIBIL Dispute Resolution

Your CIBIL score report plays a direct role in determining whether your loan or credit application is approved or delayed. Errors, such as incorrect account details, outdated business or personal information, can lower your credit score, increase interest rates, delay approval, or even result in rejection. The CIBIL dispute is a formal method through which businesses and individuals can report inaccuracies and request corrections. Let's understand what is a CIBIL dispute how can you apply for it.

What is a CIBIL Dispute?

A CIBIL dispute is a formal request raised to CIBIL to report any issue, discrepancy, or any suspicious activity in your CIBIL credit report. You can raise a CIBIL dispute to rectify errors in different types of information, like personal details or payment history. CIBIL disputes are common, with millions of complaints received each year.

TransUnion CIBIL reviews the request within 2-5 days and forwards it to the lender (that originally reported the data) for verification. Within 30 days, the issue is resolved; however, the timeline depends on the lender's response time.

What Causes Errors in Your CIBIL Report?

The CIBIL report is an official report of your credit history that tracks your loans, credit cards, and repayment behaviour. This report is created by TransUnion CIBIL after compiling monthly data submitted by banks and financial institutions.

Since the data is sourced from multiple sources, mismatches can occur due to reporting delays, data entry errors, duplicate records, or incorrect account information. The errors in your CIBIL report can affect eligibility for loans and harm your credit score. It becomes important to get it rectified at the earliest through the CIBIL dispute resolution process.

Why is CIBIL Dispute Resolution Important?

The CIBIL dispute resolution process is important because even a small error can change how your profile is interpreted. It affects:

• Loan approval decision: Lenders rely on the CIBIL report to approve or reject loan applications. Errors can lead to loan denials.

• Credit score: Incorrect entries, like missed payments or high outstanding balances, can lower the score, which can lead to decreased loan eligibility.

• Loan terms: Even if the loan is approved, errors can result in higher interest rates or a lower credit limit.

These errors cannot be auto-corrected, and CIBIL cannot modify the data without confirmation from the lender. Hence, a detailed CIBIL dispute resolution process needs to be followed to verify the information and ensure the credit report reflects correct data. Accurate information increases your chances of obtaining a personal loan or credit card approval.

Common Reasons for CIBIL Disputes

Below are some common reasons that can trigger a CIBIL dispute request:

Incorrect Personal Details

The loan application process uses personal details to verify your identity. Errors in personal details such as name, address, contact number, or date of birth must be flagged.

Wrong Account Details

The CIBIL report sometimes shows wrong information about the account details, like wrong loan amounts, together with incorrect payment history and outdated account status information.

Duplicate Accounts

The existence of a duplicate account causes credit reports to show higher loan amounts, leading to a decrease in your credit score.

Incorrect Ownership Details

Your profile may show accounts that actually belong to other people. Incorrect ownership information can affect your credit history.

Types of CIBIL Disputes

There are mainly two types of CIBIL disputes: individual and commercial/company disputes. Let's understand them in detail:

Individual Disputes

When the dispute in the CIBIL report is related to your personal information, payment history, or financial details, then it is called an individual dispute.

Company Disputes

In contrast, when there is some discrepancy in the ownership details, account information, or financial data of a business, then it is called a company or commercial dispute.

How to Raise a CIBIL Dispute Online?

A CIBIL dispute can be raised offline, but the most effective method to initiate a CIBIL dispute is through an online method. Here's the step-by-step process that you can refer to:

Step 1: Access Your CIBIL Account

To initiate a CIBIL dispute online, you need to visit the official CIBIL dispute portal. Visit the official website of TransUnion CIBIL Limited and log in or sign up using your registered credentials.

Step 2: Open Your Credit Report

Get access to your free annual CIBIL report and review it carefully. Look for the errors in following sections:

• Profile information, like name, date of birth, gender, or ID details, like PAN, Aadhar, email address, or phone number

• Account details, like payment not showing, wrong balances, or closed accounts appearing to be open

• Unfamiliar loan or credit card enquiries

• The same account is being listed multiple times

However, certain entries are valid and cannot be disputed, like closed loans or cards, loans or credit cards issued but not used, and loans taken from digital lending platforms.

Step 3: Fill the Form

Use the CIBIL account's online dispute form, which can be accessed from your account portal. You must include your full name, date of birth, contact details, and a clear explanation of the error in written requests to CIBIL. Provide the details and supporting documents or evidence, such as loan closure letters, bank statements, or a PAN card, as proof. Then, TransUnion CIBIL will coordinate with the bank or financial institutions for verification and correction.

Step 4: Submit and Track the Dispute Request

Submit the request after finishing the dispute form. You will receive an email confirmation once the request is registered. Once you submit the dispute, CIBIL investigates and submits your complaint to the relevant bank or financial institution. CIBIL will send you email updates concerning your dispute status every seven days after you submit a dispute.

Note: To initiate a dispute, ensure that your CIBIL report is not older than 60 days.

Tips to Avoid CIBIL Disputes

Your credit report errors need to be stopped because they damage your credit health. The practice of following these simple methods will decrease the possibility of disputes that will arise: 

Check Your Credit Report Regularly

Check your credit report at least once every 2 months because it helps to find mistakes at an early stage. Ensure that all your accounts are reported accurately to avoid potential disputes.

Maintain Accurate Personal Details

Banks require customers to update their address and contact number information whenever it changes. The correct personal information helps to prevent identity mistakes, which could show up in the credit report.

Monitor Loan Accounts

You need to monitor both your loan payments and credit card spending. You can find incorrect payment records by monitoring your accounts.

Maintain Healthy Credit Utilisation

Your credit score will decrease when you use too much of your available credit. Your credit health improves when you keep your credit utilisation at low levels.

Keep Documents Ready

You should keep loan statements, payment receipts, and bank statements as document copies. These documents help support your CIBIL dispute resolution request.

Read also: How to Get a Loan Despite a Poor CIBIL Score?

Conclusion

A CIBIL dispute helps correct errors that appear in your credit report. The CIBIL dispute resolution process verifies and updates all incorrect data through its verification process. Your credit score and financial credibility remain protected when you maintain an accurate CIBIL report. The process of reviewing your credit report enables you to discover and correct mistakes that would otherwise disrupt your loan application process. You should begin a dispute when you find information that is not correct. Poonawalla Fincorp allows you to verify your CIBIL score through its online platform, which also enables you to track your credit report for effective financial management.

FAQs

What is the timeline for CIBIL dispute resolution?

CIBIL can resolve a dispute within 15-30 days, but the timeline depends on how quickly the lending institution responds to the dispute. However, CIBIL sends email updates concerning the status of your dispute every seven days during the resolution process.

How can I raise a CIBIL dispute?

You can raise dispute requests by logging into the TransUnion CIBIL portal and submitting an online dispute form. Also, you can email the error to CIBILinfo@transunion.com, call customer service or visit the CIBIL office.

What if my CIBIL dispute remains unresolved after 30 days?

If your CIBIL dispute remains unresolved even after 30 days of reporting, then you are eligible to get RBI-mandated compensation from either CIBIL or bank/financial institutions, which is Rs. 100 per day of delay.

Is CIBIL dispute free of cost?

Consumers are not required to pay any fee to rectify typos, incorrect information, and discrepancies in personal details in their report.

How many CIBIL disputes can one raise?

There is no limit on the number of disputes consumers can file with CIBIL. One can raise multiple disputes, like errors in personal details, account ownership, or account information, in a single online dispute form.