Consumer court orders Standard Chartered Bank to pay ₹1 lakh to customer for failing to update CIBIL records

Reportedly, the complainant paid the amount and also received a confirmation having no outstanding dues. The bank removed Venkatesh’s name from CIBIL records and updated it with Shaha Finlease. However, the complainant later found that the CIBIL record was not updated on the banks’ side and continued to mention him as a debtor. The assignee also demanded a sum of ₹20,491 to issue a no-dues certificate and to update the CIBIL record.

Given the situation, Venkatesh took the case to the consumer court seeking compensatory damage against the faulty services provided. While the bank did not consider appearing in the case, the assignee Shaha Finlease mentioned that the complaint was time-barred and Venkatesh had approached it 8 years after the incident.

Considering the arguments and the record, the quorum of President B Narayanappa along with Jyothi N and Sharavathi SM as members found that the assignee had released legal notices to Venkatesh in 2020 and 2022. The notice was aimed to inform that there was a due amount of a whopping ₹20 Lakh and over ₹33 Lakh outstanding in his name.

At the time of Venkatesh’s plea to remove his name as a debtor, Shaha Finlease demanded ₹20,491 to clear his name in the CIBIL records.

As per the Bar and Bench report, advocate Abhishek MR represented the complainant Venkatesh in the case, while advocate Santhosh Kumar MB represented Shaha Finlease.