There are quite a few things that could be incorrectly recorded in the credit information reports that are stored with CIBIL. Here are a few instances, detailed for your understanding.
Confusion of names: There can be lakhs of names that are similar in the CIBIL database. Things can go haywire if a person with your name has defaulted and all his defaults get recorded in your file. There was one instance, which a loan applicant reported, her name Anju Jadeja was confused with Anjum Taneja. Turns out Anjum Taneja passed away tragically in a freak accident, with nobody able to identify her, till Bank authorities decided to investigate the applicant after CIBIL corrected and ratified Anju Jadeja’s credit report. Till that point in time, the bank had put down her bouncing cheques, as default payments, issuing warnings etc. on deaf ears. Today Anju is a relieved woman.
Human input error:The information that goes from the banks to the CIBIL on a default may have been erroneous due to simple input error by one of the bank employees. There was this instance, when there was an accidental default a month overdue payment of 18,000 of one Tanushree Omkar, which she cleared the next month. However, the record that went to CIBIL, had two additional zeros, which made the default amount to 18L!!
Identity Theft: This is the most serious of all causes of errors and can have a disastrous impact on a person’s credit profile. In recent times, identity thefts are on the rise. Right from a petty shopkeeper who swipes your card several times to sneak in an unofficial payment or track credit card details, which he can exploit, to a terrorist who wants to access a billionaire’s account in a remote corner of the world, identity theft is becoming a serious crime that needs check. If you are a victim of identity theft like Anupam Shekar was, then it is time to get your financial log in order. Keep track of all the cards that you use or do not use. In Anupam’s case, an impostor had somehow captured his Pan Card details (he later recalled, that someone had wanted to deliver a mail from his local bank only on the basis of an Identification and had been examining the Pan card given with great curiosity. It was then that it struck him that anyone could access his mailbox in the huge apartment complex he resided in.) and opened an account with a bank entering all the details he had gathered on him by accessing his mailbox. Anupam did not know for a long time about this until he decided to apply for a new credit card and his bank rejected him outright labeling him a defaulter. Anupam had to go to great lengths spending precious time and energy to clear his name. Apparently the impostor opened an account directed all transactions to another address, got a free credit card on that account and spent indiscriminately until the card was locked by the bank due to several defaults. The account was frozen but the impostor walked away scot free to scout for his next victim, but not before Anupam Shekar’s credit report was tarnished beyond repair.
It is the need of the hour for CIBIL to allow access to an individual’s credit report not only on cases when the fact needs to be verified but also as a way for individuals to keep tab on their money inflow and outflow. This will help them weed out errors, clarify facts and even identify impersonations before its too late.