From the RBI Banking Ombudsman Series 2010-11.
How to Fight Wrong Reporting to CIBIL by Bank on Personal / Housing / Car Loans and Credit Card Full and Final Settlement ?A consumer made ‘the payment is towards full and final settlement’. However, the payment made was credited to the account as usual and the account was not closed, leading to accumulation of charges. The complainant could not get home loan due to adverse CIBIL report. The Complainant approached the bank again but did not get any response.
On the RBI Ombudsman taking up the matter with the bank, the outstanding was made ‘Nil’ and the CIBIL record of the complainant was updated as ‘Settled’.
RBI further observed that CIBIL record is an important parameter for sanctioning any loan to a person, the bank should be prompt in updating the CIBIL records. In the instant case, since the bank did not correct the record even after several reminders, deficiency of service was established. The bank was advised to pay compensation of ` 5000/- towards the expenses incurred as well as for the mental anguish suffered
by the complainant.
So if you go for Full and final Settlement and then when you pull up your CIBIL Credit Report, if you find the BANK has not updated the records correctly, use the above reference, draft your letter and see compensation from the Bank.
