Cibil Report Delay Compensation: Borrowers to get compensation for delay in correction of credit report by credit information companies

Borrower to get compensation against the deficiency of credit information companies. The RBI proposes to improve the grievance redressal mechanism for borrowers. The proposal is to set up a compensation mechanism for customers for delay in updation of credit information reports. Further, an sms will be sent to customers whenever their reports are accessed. The plan also includes disclosures on customer complaints.

The borrowers have so far been at the receiving end as far as the issue of correction of credit history was concerned. When they approached the credit bureau they directed

The RBI in its monetary policy statement states “With the increase in customer complaints regarding credit information reporting and the functioning of credit information companies (CICs), it has been decided to put in place a comprehensive framework for strengthening and improving the efficacy of the grievance redress mechanism and customer service provided by the credit institutions (CIs) and CICs. For this purpose, the CICs have been brought under the aegis of the Reserve Bank Integrated Ombudsman Scheme (RB-IOS).”

The statement from the central bank says “In addition, it is also proposed to put in place the following measures: a compensation mechanism for delayed updation/rectification of credit information; a provision for SMS/ email alerts to customers when their credit information are accessed from CICs; a timeframe for ingestion of data received by CICs from Credit Institutions; and disclosures relating to number and nature of customer complaints received on the website of CICs. Detailed guidelines in this regard would be issued shortly.”