Found Discrepancy In Your CIBIL Score? Here’s What You Can Do To Rectify

CIBIL Score: In India, your credit score can make or break your financial future. From home loans to credit cards, that three-digit number is most commonly tracked by CIBIL, the gatekeeper. Lenders use it to judge your credibility. The score itself is built on data shared by banks and NBFCs: repayment history, active loans, defaults, and credit usage. On paper, it's supposed to be objective, automated, and fair.

But when the data behind that score is wrong, the system doesn't just fail; it can wreck lives. What if your CIBIL score is wrong?

Facing issues with discrepancy, some people are running into errors on their CIBIL reports: fake loans, mismatched account numbers, incorrect addresses, and delays in updates. Worse, when they try to fix it, they're passed from one agency to another, with no one taking responsibility.

Take Anmol Gupta, founder of 7Prosper and a regular voice on LinkedIn, didn't expect a nightmare when he checked his credit score. But there it was, his CIBIL score had plunged to the 600s. The reason? A loan of Rs 20,000 he never took, from an NBFC he'd never dealt with.

The report showed monthly repayments of Rs 334, Rs 303, and Rs 273 on a loan with 1 per cent daily interest. The outstanding balance? Rs 1.07 lakh.

"Neither did I need this loan nor I have taken it," Gupta wrote. "There is no trace of payments or repayments in my bank accounts."

The NBFC couldn't provide any verified KYC, contact information, or even a proper sanction letter. Just his name on a piece of paper. When he pressed for answers, they asked him to pay Rs 27,000 for an NOC on a loan he insists he never took.

"Now either my details have been misused by someone... or this NBFC is in the business of extorting money by falsely reporting to CIBIL," Gupta said in his post.

This isn't a one-off. It's happening across India.

The Invisible Toll of Credit Reporting Errors

Kandadai Partha Sarathy, Executive Editor at Madhyam Communications, called out the system in a searing post titled "CIBIL - An irresponsible organisation that can spoil common man image." His frustration was directed at the complete lack of responsibility CIBIL shows when data errors arise.

In his own case, ICICI Bank wrongly added a credit card to his record. It took him months to fix. No action was taken against the bank. No apology. No redress.

"CIBIL simply washes its hands saying that it doesn't have any responsibility," Sarathy wrote.

His issues weren't limited to just errors. He highlighted delays in data updates, inconsistencies across credit agencies, and a broken mechanism where consumers are left chasing corrections while banks and bureaus play blame games.

Ordinary Citizens, Extraordinary Damage

A Reddit user shared how a supposed Rs 6,600 overdue on an SBI card tanked his score just as he was arranging funds for his child's education abroad. The catch? The account number in his CIBIL report didn't match any of his cards.

Another user discovered a loan under his name, tied to a completely different address, phone number, and email. Even after raising disputes and getting confirmation from banks that the data was incorrect, his score stayed low.

Yet another reported that multiple false inquiries were made on his report, acknowledged by the banks, but CIBIL never fixed the score. It dropped from 780 to 767 and stayed there.

These aren't just numbers. They decide on access to home loans, education funds, and even job opportunities. A false entry, a phantom loan, or a mismatch can derail lives.

How can you clear the CIBIL score error?

Step 1: Identify & Document the Errors

• Download your credit report (free once annually via CIBIL or others).

• Highlight unknown loans, questionable repayments, or incorrect details.

• Gather proof: bank statements, payment receipts, statements showing no record of the loan.

Step 2: Raise a Dispute with CIBILOnline (fastest route):

1. Log in or register on CIBIL's website (myCIBIL).

2. Go to the "Dispute Center" and select each wrong entry.

3. Attach scanned supporting documents and submit them.

4. CIBIL then contacts the NBFC to investigate. Resolution usually comes within 30 days; banks have up to 45 days by law.

Offline:

• Write a formal letter outlining the errors, attach documents, and mail to TransUnion CIBIL Ltd, One Indiabulls Centre, Tower 2A, 19th Floor, Senapati Bapat Marg, Mumbai – 400013

Step 3: Follow Up & Escalate

• Use the dispute ID to check the status on the portal.

• If there's no response after 30 days:

  • Escalate to the NBFC's nodal officer.

  • After 45 days without resolution, complain to the RBI Integrated Ombudsman Scheme (free, handles banks/NBFCs)

  • Submit through RBI's portal, email, toll-free 14448, or physical form dsij.in.

Step 4: File Consumer or Legal ComplaintsIf resolution stalls or the NBFC is uncooperative:

• File a Consumer Case with your State Consumer Disputes Redressal Forum (e.g., for Haryana, approach the State Commission) 

• Approach Civil or Debt Courts citing the Credit Information Companies (Regulation) Act 2005.

  • NBFCs and banks must ensure accurate reporting and can be held accountable under the Act.

• With proof, you can claim damages, correction of records, and even compensation.

Step 5: If Identity Fraud Is Suspected

• Report the suspected misuse to the Cyber Crime Police (FIR).

• Notify your bank and PAN-linked institutions to block further misuse.

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