What are the Limitations of Credit Reports fetched by Banks?

What are the Limitations of Credit Reports fetched by Banks?

4.2/5 - (6 votes)

Banks and Lending Institutions in India fetch the Credit Report about the Loan applicants and the Credit Reports Fetched by the Banks have many limitations such as:

  • Credit Reports fetched from TransUnion CIBIL, Experian, Equifax, and CRIF High Mark Servers are different from each other, and Scoring Pattern is also different.
  • Reporting Dates are not Current Dates and as such the reflections in the Credit Reports are not the latest updates about CIBIL Status, Closure Dates, and Overdue amounts.
  • To maintain the secrecy and privacy of Credit and CIBIL Data, the Credit Reports do not show the i) Name of the Lending Banker ii) Account Number.
  • Contact Numbers and Email IDs of Nodal CIBIL Teams of Reporting Credit Institutions are not provided so that the consumers can easily contact the Reporting Credit Institutions for any Misreporting of Facts.
  • There is no law in India to sue the Credit Bureaus or Reporting Credit Institutions for damaging the Credit Reports of the Borrowers due to the merger of data of two individuals getting merged due to lack of a unique identifier as Transunion CIBIL and Credit Bureaus use a complex match logic, which is an automated process and involving no manual intervention,  to help ensure that the errors do not occur.
  • Banks enter into “Settlements” with their Borrowers without taking their “Guarantors” into confidence in the Settlement Procedure and Report such Loan accounts in Credit Reports of Guarantors which is not legally justified. Having released the securities to the Principal Borrower by the Banks, the Guarantors are legally automatically absolved of their liabilities as Guarantors but Banks keep on reporting such “Settled Loan Accounts” in the CIBIL Reports of both the Guarantors whereas such accounts need to be removed from the CIBIL Reports of Guarantors as Banks has lost their legal right against the guarantors by entering into “Settlement Agreement” with the borrower without taking the Guarantor into confidence.
  • Wrong Reporting of Date of Birth, PAN ID, Voter ID, Passport ID, DL-ID, Aadhar ID by the Reporting Credit Institutions through an oversight in which case Somebody Else will Damage Your Credit Report.
  • The public is under the misconception that Standard Assets cannot Lower the CIBIL Score as No Banker and Lending Institution creates awareness amongst its borrowers and they keep on charging Penal Interest in Loan Accounts as Standard Assets are those accounts which have DPD (Days Past Due) of 1 – 90 days and Zero DPD is the ideal CIBIL Status.

PS: We have no association with any Credit Rating Agency like CIBILExperianEquifax, or CRIF High Mark – which are the only Credit Rating Agencies in India.

Ashok Goyal

Hi members, I am Ashok Goyal from Rajpura - Punjab, a town near Chandigarh. I am a retired Chief Manager from a Top Nationalized Bank in India with 35 years of experience. I am the CEO-cum-Founder of this site made for Young and Old, Technical and Non Technical members to spread their knowledge across the Globe. I am a Science Graduate with an M.A. in Economics and C.A.I.I.B. (Certified Associate Life Member of Indian Institute of Banking and Finance since 1980 and a Social Worker authoring many Blogs for the benefit of the Public in General. I Graduated from Patel Memorial National College, Rajpura - 140401 and secured a Master's Degree in Economics from Punjabi University, Patiala - 147001 Punjab, India. Expert in Legal and Money Matters, may it be Banking, Investments, and Insurance or Fraud investigations. My Hobby is to share Knowledge and alarm the younger generations about the practical implications of transacting online. I am available at many Social Networking Sites. I am health conscious and like reading deeply about anything related to health and nutrition. In the case of any violation of objectionable content, the images on my authored links or on this site, you can either report me directly or you can file a DMCA complaint about the removal of the content. I do not like spammers and never hesitate to report the abuse of my profile information. I am the owner of the WQAINDIA Brand hosting self-hosted Question Answers Site at Web Question Answers. In Jan 2016, I founded Samadhan Kender at Rajpura - which is now talk of the down. In January 2017, keeping in view the Identity Crisis in India I found that the Public was facing difficulties in their CIBIL Reports - I started my best ever venture at CIBIL Consultants to solve the CIBIL Problems of the Public online. CIBIL Consultants is having its client base in all 17 states in India. © Copyright - Ashok Goyal – ALL RIGHTS RESERVED: This is my original work and I do not like any content to be copied or posted anywhere on the web or elsewhere. All the articles available on my social profiles are exclusively owned by me. If you like my articles then you can visit my articles and provide the URL as a link, without any copyright infringement, on the website or blogs which are not having any adult content related to sex, violence, hate-redness, or religious fundamentalism as per Google or Facebook TOC. DISCLAIMER: The information on this site or elsewhere - under my Profile Name is for general information purposes only. The information provided by me is simply educative to the best of my knowledge and belief. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability about the information, products, and services being displayed on this website for any purpose. Any reliance you place on such information is therefore strictly at your own risk. In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising out of or in connection with the use of this website or my profile anywhere on the web. We welcome feedback, comments or healthy criticism on any article or content on this site or my own work anywhere on the web. I owe my success on the web to IndiaStudyChannel to Tony John, Webmaster at ISC. I am also a featured author at HubPages, Global Site for writers and Authors. This site is dedicated to my countrymen to sharpen their online skills to compete for the world. The public can also get their CIBIL Reports rectified professionally at very low prices – when big corporations are charging as much as Rs.25000 per person per Credit Report.

You may also like...

Leave a Reply