How To Raise and Resolve CIBIL Dispute?

All lenders base their decision for advancing loans to borrowers on the basis of creditworthiness of a loan applicant. This is a subjective aspect but formal lending channels have devised a method to assess this via a standard credit score.

The credit score or the CIBIL score captures credit-related history of a person. The score varies between 300 and 900. The higher the score, the better it is and signals a higher propensity of a person to repay the money they have borrowed or will borrow. This is based on various parameters such as whether the person has met all repayment schedules of past loans in time, the type of loans availed and how desperate he or she is to take a loan and more.

But sometimes errors crop up in the CIBIL score. This happens rarely but one needs to keep track of it by periodically checking the credit report and spotting any incorrect markings or notes.

This can be because a credit card company made an error and did not update a payment that was made or a bank that incorrectly mentioned a delayed payment for an equated monthly installment (EMI) or an NBFC that has mixed up a loan between two persons. All these could negatively affect the CIBIL score.

The good news is that even if the error has crept up, it need not be something that one has to live with and suffer in the form or delayed loan approvals or loan sanctions with high interest rates in the future.

Credit scoring companies have created a process where one can flag and get the error corrected.

One can now initiate a dispute online with CIBIL for inaccuracies, account ownership and duplication of information that reflect in one’s credit report. In fact, CIBIL does not even charge any fee to its consumers for this service and CIBIL recommends raising a dispute online for quicker resolution.

Alternatively, one can raise a Dispute Request by writing to TransUnion CIBIL at its Mumbai office.

Types of CIBIL disputes

There are broadly two types of CIBIL disputes:

1. Individual Dispute

These disputes may arise from duplicate accounts or mistakes in personal details. Errors in personal information include incorrect names or addresses. Additionally, a duplicate dispute may occur because of an unrecognised credit inquiry or double reflection of a loan.

2. Company Dispute

The credit reports of companies may contain such discrepancies. These include incorrect ownership details, inaccuracies in data, duplicate accounts, and company information. You can raise an online dispute when you are the company's authorised signatory.

CIBIL dispute resolution process

Here's what happens when you initiate a dispute with CIBIL:

Step 1: Verification and Communication

CIBIL will first examine the information you've flagged as incorrect. They'll then forward these details to the relevant lender or credit institution involved in the dispute.

Step 2: Review and Resolution

The lender will assess the disputed information. If they agree it's inaccurate, they'll work with CIBIL to update your credit report with the corrected details.

Step 3: Clean Report, Improved Score

Once the dispute is resolved, the "Under Dispute" tag will be removed from the specific field. 

Expect to see the corrected information reflected in your next credit report, typically within 30 days of initiating the dispute process.

Steps To Raise Dispute Resolution Online

If you are wondering how to raise dispute in CIBIL, then no need to worry. It is an easy process. You can notify TransUnion CIBIL online through their Consumer Dispute Resolution process.

For Existing Members:

• Step 1: Log in to your myCIBIL account using your username and password.
• Step 2: Navigate to the "Credit Report" section and find the specific information you want to dispute. Click "Raise a Dispute" next to the error.
• Step 3: Fill out the online dispute form, clearly identifying the section and reason for your dispute.

For Non-Members:

TransUnion CIBIL also offers an online dispute resolution form that you can access directly without logging in. This is a convenient option for anyone not yet registered for a myCIBIL account.

While online dispute resolution is the fastest way to address discrepancies, you can also submit a written complaint by mail to TransUnion CIBIL's registered office in Mumbai.

Steps To Dispute Resolution Online

1. Review The Credit Report:

The first step in the process is to check the credit score report and spot any errors. These errors could be incorrect personal information, wrong loan account tagged to one’s report, inaccurate outstanding balance mentioned in the report, status of a closed and repaid account being shown as active and more.

2. Fill The CIBIL Dispute Form:

To remove one or more wrong entries, one can file an online dispute with the credit bureau. Go to the dispute resolution area of their website and fill out the form. You will need to provide a nine-digit control number from your credit report that contains the disputed information. This can be done by logging into myCIBIL and navigating to the credit reports section and within that the subsection of ‘Raise a Dispute’. One can complete the online firm and select the specific section that one wants to dispute. If one is disputing ownership, one has to select dispute and if one is disputing data inaccuracies one has to enter the value for the disputed field and submit.

3. Processing and Verification of Dispute Form:

After submitting the CIBIL dispute form online, the agency will verify the dispute and may reach out to the bank or lenders as it cannot make any changes on its own without verification from the lending institutions.

4. Wait For The Resolution:

Usually, a wrong entry gets corrected in a CIBIL credit report in around a month. That said, at times this timeline does get stretched. But lenders need to come up with a formal resolution for the dispute raised by the borrower within 45 days of the matter being reported, as per the prescribed norms. This makes sure one doesn’t end up waiting endlessly for a resolution. After a formal resolution, the applicant is informed of the decision and if one is not satisfied with it, one can raise a separate request with CIBIL for another attempt to sort it.

How to Register a Complaint on CIBIL’s Consumer Dispute Resolution Portal?

In order to register a complaint on CIBIL's portal, you will have to follow these steps

Step 1: Head to the TransUnion CIBIL website and access your CIBIL dashboard using your username and password.

Step 2(Optional): It's a good idea to ensure you're working with the latest information by refreshing your credit report before initiating a dispute.

Step 3: Locate the "Dispute Resolution" section and fill out the online dispute form. Be clear and specific about the information you believe is incorrect. You can even file multiple disputes if necessary.

Step 4: Once you submit the form, TransUnion CIBIL will contact the relevant lender or credit bureau to investigate the discrepancy.

Step 5: If the lender agrees with your dispute, CIBIL will update your report with the corrected information within 30 days. You'll see the "Under Dispute" tag removed from the specific field in your next report.

Conclusion

The credit score or the CIBIL score is an important determinant of loan applications getting a nod or rejection from lenders, so they are critical in the life of a borrower and would-be loan applicant. A higher score is seen as a positive sign of creditworthiness and vice versa. But at times, there are some errors in the credit report that negatively impact the score. One can get such errors resolved by reviewing the credit report, flagging the concerns via a formal timebound process to enjoy a healthy creditworthiness.

Once you have checked and corrected the credit score, make sure you approach only reputed lenders such as IIFL Finance to take out a loan. IIFL Finance offers various loan products via a swift online and offline process. The leading NBFC follows a customer-centric approach that not only helps borrowers complete the loan application and repayment processes quickly and without hassles but it also offers the most competitive interest rates, especially to people with strong credit profiles.