CHANDIGARH: An incorrect CIBIL tag became a costly mistake for a leading credit card company after the District Consumer Disputes Redressal Commission, Chandigarh, ordered to delete the mistake and pay Rs 20,000 compensation. The judgment came after a resident of Sector 18, who had already cleared his dues in 2007 and had a “no dues” certificate, was followed years later with calls demanding unpaid amounts and was marked as a defaulter on his credit report.In his complaint, the resident stated that he had cleared his dues in full and final payment of Rs 18,000 and that he had been issued a ‘No Fees’ certificate. Despite this, he began receiving calls in 2020 claiming that Rs 11,652 was still outstanding. When he checked his CIBIL report, he found that his name was recorded as a loan defaulter.
According to the complaint, the consumer contacted the company with proof of payment, and although employees allegedly acknowledged the error and assured a correction, no corrective action was taken. In the commission, the company argued that the account was transferred to another bank in 2016 as part of a securitization process. However, the Commission found that the fees had already been paid in 2007 and the account should not have been declared insolvent thereafter. It also noted that the bank now managing the account had issued a no-fee certificate in 2021, confirming that there were no outstanding payments.The Commission found that prolonged inaction forced the consumer into otherwise avoidable correspondence, resulting in harassment. It directed the company to immediately ensure that the name of the complainant is removed from the CIBIL delinquent list if it has not already been done so and to pay Rs 20,000 towards harassment, mental anguish and legal costsErrors in CIBIL records can block access to bank loans, home finance, vehicle loans and credit cards, and sometimes even impact employment or visa processing.
