Who checks the quality of technology or data-matching algorithms used by CIBIL or the other credit bureaus? What is the redress process, when it fails?
At Moneylife’s ‘Open House’ with RBI deputy governor Dr KC Chakrabarty on 3rd June, an angry customer stood up to complain about Credit Information Bureau of India 
Limited (CIBIL), which practically enjoys a monopoly of the credit bureau business. On 4th June, we received an angry letter from one Umesh Dhawan whose Rs5-lakh loan was rejected because he was shown as a defaulter by CIBIL. He was under the impression that his banker had reported him. But we discovered that the problem was far worse. CIBIL apparently used its own algorithm to match data and ended up mixing his data with that of another person called Umesh Uhawan. Once again, the question is: Who checks the quality of technology or data-matching algorithms used by CIBIL or the other credit bureaus? What is the redress process, when it fails?
CIBIL claims that the number of incorrect credit data, because of inaccurate matching of information, is low and on par with credit bureaus of similar size abroad. Who will verify if this claim is true? And how is a customer going to be compensated for the untold harassment suffered? If, as CIBIL claims, the mismatch of data leading to wrong reporting is so low, surely, RBI can mandate compensation for customers. At present, CIBIL gets away with a vague regret letter and a correction of records, when its goof up and poor redress mechanism can ruin the financial life of its hapless victim.
NOTE: If you are facing similar issue, you may want to get help from Moneylife Foundation's free Credit Helpline http://www.freecredithelp.in/
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Dear Sir,
We refer to your email dated 14/6/2013 regarding your CIBIL Report.
At the outset, we apologize for the delay in response.
We would like to inform you that our Managing Director is currently travelling. We are looking into the issue and will revert to you shortly.
Thanking you.
Best Regards,
Berly Varghese
____________________________________________
Credit Information Bureau (India) Limited
Hoechst House, 6th Floor,
193, Backbay Reclamation,
Nariman Point,
Mumbai 400 021, India
_____________________________________________
--------------------------------
Dear Sir,
We refer to your email dated 14/6/2013 regarding your CIBIL Report.
At the outset, we apologize for the delay in response.
We would like to inform you that our Managing Director is currently travelling. We are looking into the issue and will revert to you shortly.
Thanking you.
Best Regards,
Berly Varghese
____________________________________________
Credit Information Bureau (India) Limited
Hoechst House, 6th Floor,
193, Backbay Reclamation,
Nariman Point,
Mumbai 400 021, India
_____________________________________________
Thanks for your comment.
Kindly note a customer can receive his/her credit report for less than Rs150 (varies between credit bureaus). Similarly, CIBIL charges over Rs400 for Credit Score. You may also want to read http://www.moneylife.in/article/credit-s... ; http://foundation.moneylife.in/?th_galle... and http://www.moneylife.in/article/who-is-a...
Thanks
MDT
http://www.hdfcbank.com/assets/pdf/CIBIL...