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Credit score ‘misused’: How to fix this key metric

A customer can check her credit score and whether any loan (which has not be taken) is outstanding through the reports furnished by respective credit information bureaus.

A deterioration in credit score, and default on existing loans, can have adverse consequences such as denial of future credit or credit being available at rates much higher than market interest rates. (Representational)

Multiple cases have recently come to light of miscreants allegedly using other people’s permanent account number and other documents to avail loans without customers’ knowledge from fintech firms and NBFCs. As many of these loans were not repaid, this affected the credit score of a number borrowers without them actually having taken and defaulted on them. Specific instances were reported for Dhani Loans and Services, formerly known as Indiabulls Consumer Finance Ltd.
A deterioration in credit score, and default on existing loans, can have adverse consequences such as denial of future credit or credit being available at rates much higher than market interest rates.

How to get credit score rectified?

A customer can check her credit score and whether any loan (which has not be taken) is outstanding through the reports furnished by respective credit information bureaus. These reports can be obtained by logging into CIBIL, Equifax or Experian or by accessing through one’s bank via net banking facility.

Experts say the easiest way to rectify in the recent cases would be through an institutional process initiated by the Reserve Bank of India (RBI). Affected persons can also directly approach the information provider and the bureaus, even as that is expected to be a tedious process.

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“This rectification process has to be case specific…if CIBIL score has been distorted, the customer has to reach out to the specific institution where their security was compromised. The loan provider, who is also the information provider, will have to reach out to CIBIL to put the customers rating in order. In addition the aggrieved parties should also reach out to CIBIL & initiate dispute request online or by writing to them,” said Surya Bhatia, a certified financial planner. An easier way being suggested by financial sector experts is the RBI intervening to provide relief to aggrieved customers.

“The number of users is few, however, we will leave no stone unturned to mitigate any possibility of identity theft. We have a customer service team of over 6,500 executives to provide speedy resolutions after due diligence. Our risk management and tech teams have been on overdrive, constantly building more robust systems to try and keep such activities at a distance. We have integrated with G-defence which is a global security platform to further re-verify each device against a specific customer and PAN through various data fields. If any individual has a query or needs to connect with us, can reach us on 0124 6555 555 or write to us at support@dhani.com ” said a spokesperson for Dhani Loans and Services.

Where to approach if the issue is still not resolved?

The RBI’s Integrated Ombudsman Scheme provides cost-free redress of customer complaints involving deficiency in services by banks, NBFCs, and payment system operators.

First published on: 28-02-2022 at 03:00:24 am
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