How to Wash Out and Clear CIBIL Credit History?

How to Wash Out and Clear CIBIL Credit History?

Generally, the Public asks me that they want to completely wash out and clear their previous bad CIBIL Credit History from their Credit History or CIBIL History. How is it possible? CIBIL History is also the replica of your Good or bad Financial Karmas and it is something similar to “Theory of Karma in Hinduism” which works on the principle of “As You Sow, So Shall You Reap”. The Good Karmas get converted into virtuous deeds and Bad Karmas become sinful deeds. While you enjoy the fruits of Good Karma, you are also to pay for your bad karmas. It is not possible that that Bad Karmas can be written off against Good Karmas. Similarly, it is not possible to completely wash out the Bad Credit CIBIL History from the CIBIL Reports. However, for a particular loan account, fresh Credit History gets overwritten over a period of 3-5 years with the only exception that bouncing of instalments  always remains there in the Credit History.

Strangers’ Loan accounts can be Removed:

If due to certain reasons like

i) Misreporting by Banks and Lending Institutions

ii) Technical Reasons beyond the control of TransUnion

CIBIL, some Strangers’ loan accounts creep into the CIBIL Reports of the Public then the consumers have to follow the following procedures:

  • Purchase CIBIL Report from CIBIL under the guidance of CIBIL Consultants.
  • While Registering with CIBIL, Never use email ID or Mobile Numbers of others or Untrusted Individuals as your CIBIL Account may not Get Locked and it may become difficult to recover your account. It is always better to use the services of Professional CIBIL Experts.
  • Disown the Loan Accounts and Credit Cards, which do not belong to you, appearing in the CIBIL Report.
  • Get the DOB, ID Numbers like PAN, Aadhar, Voter ID, Passport, and Driving License in the CIBIL Report rectified.
  • Disown the Mobile Numbers, Telephone Numbers, and Addresses not relevant to you.

While taking up the Case of one of our clients we served notice to TransUnion CIBIL for their Technical Mistakes leading to mental harassment of our esteemed client. The TU CIBIL informed us in writing as under:

In this regard, we would like to inform you that TransUnion CIBIL collects and maintains the credit history of consumers. We obtain this information from Credit Institutions. TU CIBIL matches the data submitted by different credit institutions basis personal information like Name, Date of Birth, PAN, City, State, Pin Code, telephone numbers to generate an individual’s Credit Information Report (CIR). We use complex match logic to help ensure that the errors do not occur.  This is an automated process and involves no manual intervention.  However, if the personal information of an individual is common/ similar to another individual, that data of two individuals get merged due to lack of unique identifier. This may lead to inaccuracies in the CIR. However, on receipt of a complaint, we take immediate corrective action to separate the incorrect information.  We provide a complimentary updated CIBIL Credit Report & Score after resolution of all disputes.

Can Consumer Disown his/her Own Bad Loans or Credit Cards?

As already conveyed in our first part of this article the straight answers is a “Big No“. But if you have change of heart and you want to get rid of your Past Bad Loans and Credit Cards then the option lies with the consumer and in a phased manner the consumer can get rid of the Bad Credit History. But it is not that simple as it appears to be while reading this article – and to achieve the target the consumers need to engage Professional Experts who will keep an eagle eye on all your loan and Credit Card accounts and ring the bell immediately when either the consumer does any mistake or the Lending Banker or TransUnion commit any mistake.

However, while dealing with the “Written Off and Settled” loan accounts of one of our clients from Lucknow, the Principal Nodal Officer of a leading Private Bank accidentally informed us as under: (Reproduced Below in Truncated Form to keep the Privacy and Secrecy intact):

Truncated Reply received from one of the Leading Private Bank (Name of the bank and our Client along with other sensitive information is suppressed to maintain Privacy and Secrecy Standards at CIBIL Consultants.)

Sharing of information with Credit Information Companies is a statutory requirement for all financial institutions. As per process, the actual track record and monthly classification of each loan account are updated on the credit information report.

We confirm that the loan account details (**9*9) are as per our records and have been updated correctly in your bureau report with Current Balance and Overdue amount as nil. We also confirm that the Account Status for the loan account is currently reflecting as Post (WO) Settled.

The information is reported from the date of release of the loan and will continue to reflect for a minimum period of 07 (seven) years from the date of the last update.

TransUnion CIBIL provides the CIBIL Reports to the Consumers with the following Terms and Conditions and as per present Indian Laws, TransUnion CIBIL can be sued for damages due to the wrong generation of CIBIL Credit Reports.

  • This facility is being offered on best effort basis and the Consumer agrees and acknowledges that CIBIL will not be responsible for any kind of damage arising directly or indirectly what so ever incurred by the Consumer availing this facility.
  • The Consumer agrees and acknowledges that CIBIL Report/any information therein will not be used for any commercial purpose/gain.
  • The Consumer acknowledges that no guarantee or any warranty is given as to completeness and accuracy of the content of the CIBIL Report.

Moreover as per our Past Experience if our clients get the CIBIL Clearance for their Old Settled or Written Off Loans and Credit Card then the DPD (Demand Past Due) Days History in CIBIL gets overwritten over a period of 1-5 years depending on the age of the Loan or Credit Card Status in CIBIL.

Word of Caution!

  • If the consumers are to make fresh defaults in present or future then it is not wise to go for CIBIL Clearance as conversion of “Settled” or “Written Off” CIBIL Status to Normal and improvement in CIBIL Scores will be undone by the fresh defaults or future defaults.
  • Be Alert while Disposing Of your Old Credit Cards.
  • Say Hello on Whats App No.8849950799 to Know More.

 

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