Has your credit score suddenly dropped and your credit bureaus won’t tell you why? Has the loan you didn’t take show up on your credit report, and have the bureaus asked you to contact the financial institution for resolution? If the credit bureaus do not address your queries satisfactorily or in a timely manner, you can now file a complaint with the Reserve Bank of India.
Last week, the Reserve Bank of India said it would include credit bureaus under Integrated Ombudsman SchemeWhich already covers banks, non-bank financial companies (NBFCs) and payment operators.
“This is the first regulatory measure that will hold the bureaus accountable. Till now the credit bureaus have done whatever they want because they have a monopoly in the industry and customers had no recourse,” said Kashif Ansari, assistant professor at Delhi University’s Hansraj College There are four credit bureaus in India- Equifax, Experian, TransUnion CIBIL and CRIF Highmark.
how it works
RBI’s Integrated Ombudsman Scheme Redressal customer complaints When the concerned financial institutions fail to provide solutions. This means that the customer has to first register his complaint with the credit bureaus. If the Bureau fails to address the complaint to the satisfaction of the customer or does not respond within 30 days of the filing of the complaint, the customer may approach RBI.
Complaints can be lodged online on the Grievance Management System through email at crpc@rbi.org.in, at ‘Centralized Receipt and Processing Center’ in Chandigarh or by calling the toll-free number 14448. Customers can track their grievance and do necessary correspondence through CMS portal only.
pain point
Ansari said that credit bureaus in India follow an opaque system for determining credit scores and customers have no recourse if they want to report an unjustifiably bad score or know the reason for it so that they can take corrective steps. Can pick up In fact, when customers report a discrepancy in their credit report, such as incorrect loan data, to a bureau, the latter either directs the customer to the concerned financial institution or simply with the bank or NBFC to file the complaint. Enters.
“The bureau becomes only an intermediary between the customer and the bank and resolution takes several months,” Ansari said.
In a Twitter space held on August 5 about the RBI’s move to include bureaus under its ambit, all the attendees who shared their experiences with credit bureaus in India expressed the same pain point that all the four bureaus complained about. The troubleshooting time is painfully long and this step should hopefully solve it.
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