CIBIL: Customers Continue To Suffer

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/

Comments
Ashok Kumar Bhargava
9 years ago
The matter is not as to what we have to pay to get our report.My emphasis was on customers reach to the data so that if some error is there it can be pointed out by the customer/client and rectification thereof is sought without delay as had been the case with Shri Dhawan.
Umesh Dhawan
9 years ago
I have recieved the following mail from CIBIL after 4 Reminders
--------------------------------
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
_____________________________________________

Umesh Dhawan
9 years ago
I have recieved the following mail from CIBIL after 4 Reminders
--------------------------------
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
_____________________________________________

Sucheta Dalal
9 years ago
Mr Nandy's comment is excellent. While there is so much criticism about HDFC Bank it is very nice to hear they didnt not charge anything for a credit report!
Umesh Dhawan
9 years ago
I have still not received any call back from CIBIL regarding the loss suffered by me. They think they are going to get away with it. They are harassing people.
Umesh Dhawan
9 years ago
I have still not received any call back from CIBIL regarding the loss suffered by me. They think they are going to get away with it. They are harassing people.
Umesh Dhawan
9 years ago
I received a call from CIBIL in which they told me that they will get back to me regarding compensation for the loss suffered by me. It has been 5 days and they do not have the coutesy of calling me up again. This despite I have sent a mail to their Managing Director. Pathetic is the Word for CIBIL.
Umesh Dhawan
9 years ago
I received a call from CIBIL in which they told me that they will get back to me regarding compensation for the loss suffered by me. It has been 5 days and they do not have the coutesy of calling me up again. This despite I have sent a mail to their Managing Director. Pathetic is the Word for CIBIL.
Ashok Kumar Bhargava
9 years ago
Presently a customer has to pay arround Rs.400-500 to have their own Credit rating. I think CIBIL should allow a customer to see their own data of credit rating so that they can request for rectification if some thing wrong has been reported/posted in their database. This will help customers in getting the rating corrected if any factual error exists.
Sucheta Dalal
Replied to Ashok Kumar Bhargava comment 9 years ago
You can get your credit report from your bank by paying Rs50. Please read moneylife cover story on the subject.
Dayananda Kamath k
Replied to Ashok Kumar Bhargava comment 9 years ago
so we pay them for correcting their mistakes. we are giving incentive for committing mistakes. this is how new businesses are generating income.
MDT
Replied to Ashok Kumar Bhargava comment 9 years ago
Dear Mr Bhargava,
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
R Nandy
Replied to MDT comment 9 years ago
I had requested the credit report via HDFC Credit Cards.They have a form for making the request which needs to be posted to HDFC.It was written that Rs50 is charged for the credit report.But,they did not charge for it.I had requested it just for curiosity.
R Nandy
Replied to R Nandy comment 9 years ago
Dayananda Kamath k
9 years ago
who is to be blamed for this. it is the regulators only. they make everything compulsory using powers conferred in them, without putting in place a proper mechanism to implement the same and grievances redressal systems.
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