How RBI can help with your credit report issues

Has your credit score suddenly dropped and your credit bureau won’t tell you why? Did a loan you didn’t take show up on your credit report and the office tell you to approach the financial institution for a resolution? You can now file a complaint with the Reserve Bank of India against the credit bureaus if the latter do not resolve your queries satisfactorily or in a timely manner.

Last week, the Reserve Bank of India announced that it would include credit bureaus in its integrated ombudsman program, which already covers banks, non-bank financial companies (NBFCs) and payment operators.

“This is a first regulatory step that will hold offices to account. Until now, the credit bureaus did what they wanted because they held a monopoly in the industry and customers had no recourse,” said Kashif Ansari, an assistant professor at Hansraj College. Delhi University. There are four credit bureaus in India: Equifax, Experian, TransUnion CIBIL and CRIF Highmark.

How it works

RBI’s built-in mediator system repairs customer complaints when the financial entities concerned do not provide a solution. This means that the customer must first report their grievance to the credit bureau. If the office fails to resolve the complaint to the client’s satisfaction or fails to respond within 30 days of filing the complaint, the client may approach the RBI.

Complaints can be lodged online on the Complaint Management System, by email to [email protected], by post to the “Centralized Reception and Processing Centre” in Chandigarh or by calling free number 14448. Customers can track their complaint. and carry out the necessary correspondence only through the CMS portal.

point of pain

Ansari said credit bureaus in India follow an opaque system for determining credit scores and customers have no recourse if they want to report an unfair bad score or find out the reason so they can take action. corrective. In fact, when customers report an anomaly in their credit reports, such as incorrect loan data, to a bureau, the latter directs the customer to the financial institution concerned or registers the complaint only to raise it with the bank or of the NBFC in question.

“The office simply becomes an intermediary between the customer and the bank and the resolution takes several months,” Ansari said.

In a Twitter space hosted on August 5 on RBI’s decision to include bureaus in its scope, all participants sharing their experiences with credit bureaus in India expressed the same pain point as the time to repair credit bureaus. grievances from the four offices is painfully long and that this decision should hopefully resolve this issue.

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