CIBIL Score Dispute and Correction in India: Complete Guide

By Advocate Ganta Surya Kiran | 19 Law Chambers, Visakhapatnam | Banking Law

A wrong entry in your CIBIL credit report can destroy your loan eligibility, affect your business, and damage your reputation even if you have never defaulted on a payment. Banks regularly report incorrect NPA entries, settled loans as outstanding, and fraudulent accounts opened in your name. Knowing how to dispute and correct CIBIL errors is essential.

Common CIBIL Errors That Can Be Disputed

Wrong NPA Entry: Your loan account is marked as Non-Performing Asset (NPA) even though you have been paying regularly. Settled Loan Shown as Outstanding: You paid off a loan but it still shows as outstanding or in default. Fraudulent Account: Someone opened a loan or credit card in your name using your identity identity theft. Read: Cyber Crime Laws India IT Act. Wrong “Written Off” Entry: Bank has written off your account in their books but you actually paid — the write-off shows in your CIBIL even though the loan was cleared. Duplicate Entry: Same loan appears twice in your report.

Step-by-Step CIBIL Dispute Process

• Get your free CIBIL report at cibil.com. Review every entry carefully.
• File online dispute at cibil.com/dispute selecting the specific account and nature of error.
• CIBIL forwards dispute to the credit institution (bank or NBFC). Bank has 30 days to respond. If bank confirms the error CIBIL updates your report. If bank disputes you must take it up directly with the bank.
• Send a written complaint to the bank’s Grievance Officer with all payment proof bank statements, payment receipts, NOC (No Objection Certificate) if loan was cleared.
• If bank fails to respond within 30 days or refuses to correct file complaint with the RBI Banking Ombudsman at cms.rbi.org.in.
• File a consumer court complaint against the bank for deficiency of service in maintaining wrong credit records. Consumer courts regularly award compensation for CIBIL-related suffering. Full guide: Consumer Court Complaint India.

Frequently Asked Questions

Q: How long do negative entries stay in CIBIL report?
Typically 7 years from the date of default even after the loan is paid. Settled accounts (not paid in full) remain for 7 years. Once corrected through dispute it is updated within 30 days.

Q: Can I remove a legitimate NPA entry from CIBIL?
If the NPA was genuinely due to a default it cannot be fully removed. However, once you repay and get a NOC from the bank the status updates from “NPA” to “Closed” which improves your score significantly over time.

Q: What if bank refuses to issue NOC after full repayment?
Bank is legally obligated to issue NOC after full repayment. File RBI complaint at cms.rbi.org.in and consumer court complaint. Also: Loan Default Rights India. Free legal aid: Free Legal Aid in AP.

Also read: Cheque Bounce Lawyer Vizag | Consumer Court Advocates Vizag | Best Lawyers in Vizag

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