How can you raise a CIBIL dispute?

Are you seeking a loan or a new credit card? Then ensure you have a healthy CIBIL score. For readers new to lending terminology, a CIBIL score is a three-digit number reflecting your creditworthiness. If you have a good credit score, your credit application is cleared. If not, it can be declined.

The credit score is important because this is one of the multiple eligibility norms of lenders. CIBIL – Credit Information Bureau (India) Ltd – now rechristened TransUnion CIBIL, is the country’s premier CIC (Credit Information Company) that records people’s credit scores. The others being Experian, Equifax and CRIF Highmark. CIBIL, being the oldest and with the highest market share, its name has become synonymous with credit score. However, each company calculates their own score and lenders may query the score with one or more of the four agencies, depending on their preference. The credit score is largely based on your borrowing and repayment habits. Timely repayments without any default will generate a higher score.

At times, however, despite the best efforts of lenders and the CIC, errors can creep into the system. If your credit report is impacted because of incorrect information, you can raise a dispute over the discrepancy. Here, it’s essential to know the modalities to resolve such a dispute. If you don’t do so, the chances of procuring a loan or credit card in future may be jeopardized.

The two primary kinds of disputes in CIC reports are:

Incorrect personal details can sometimes result in errors or inaccuracies in your credit report. For example, an individual’s name is misspelt – Rahul Mehta as Rahul Mehra. An incorrect company name, PAN number, address or an erroneous payment status can trigger an incorrect entry.

There can even be a duplication of accounts. As a result, a single loan may reflect twice in a person’s credit report. Subsequently, this can lead to a lowering of the borrower’s overall credit score. To resolve these disputes, you must fill a dispute form with the CIC.

These types of disputes occur when discrepancies arise in a firm’s credit report. Just like individual disputes, these can also be the result of a duplicate account or data discrepancies. A company dispute should be filed through a dispute form that is submitted by its authorized signatory.

Do note, though, that company disputes won’t resolve those about a member’s name, enquiry date, account number and control number.

Each CIC may have slightly different processes for lodging a dispute. Let’s take CIBIL as an example. A CIBIL dispute resolution request can be raised to resolve issues with the CIBIL report or a firm’s credit report. If you already happen to be registered with CIBIL, follow these steps to raise a dispute:

• Log into ‘myCIBIL’

• Click on the ‘Raise a Dispute’ tab

• Select the section you wish to dispute

• Select your account

• For a dispute over duplicate information or ownership, choose the specific option under ‘Dispute Type’ and enter the dispute details.

• For a dispute due to inaccurate data, state the precise value for the respective field, then click ‘Submit’.

If you don’t have an account, you need to fill the CIBIL online dispute resolution form available on its site through separate URLs for individual and company disputes.

Although online dispute resolutions are the quickest means to address CIBIL report discrepancies, you could also write a letter to CIBIL’s Mumbai office at:

TransUnion CIBIL Limited, One World Centre, 19th Floor, Tower 2A and 2B, 841, Jupiter Textile Mill Compound, Senapati Bapat Marg, Lower Parel, Mumbai – 400 013.

After you raise a CIBIL dispute, if any errors or discrepancies are found during scrutiny, these are labelled ‘under dispute’. Thereafter, CIBIL will contact the concerned lender and have the mistakes corrected. In the interim, CIBIL will update you on the dispute status by email every week. Once the report is corrected, you will receive an SMS notification.

Finally, note that this process may take about 30 days because CIBIL only makes any amendments in your report after being authorized by the specific financial entity.