CIBIL agencies like TransUnion CIBIL collects borrower information and creates detailed credit reports and scores for individuals and organisations. These play a crucial role in an individual’s financial life. Credit scores indicate a person’s creditworthiness and ability to repay loans. Good credit scores can determine whether lenders are willing to approve loans and credit for borrowers.
CIBIL’s credit score ranges between 300 and 900, and a number above 750 is considered good. However, many factors could affect a person’s credit score and report. These include their loan repayment history, credit utilisation ratio, and more. Another major factor that could affect a person’s credit is a CIBIL suit.
A lawsuit is intimidating, and individuals may feel overwhelmed when faced with one. However, some steps can be taken to remove a CIBIL suit filed against you. In this article, we will explore what CIBIL is, what a CIBIL suit is, how it works, and some steps you can take to remove a suit filed in CIBIL.
What is CIBIL?
TransUnion CIBIL is one of the country’s most renowned and popular Credit Information Companies (CICs). Founded in India in 2000, it collects borrower information like credit history, loans, credit utilisation ratios, and more for countless individuals and businesses.
This information generates detailed credit reports and assigns borrowers a credit score. Lenders use this information to approve or deny loans, credit cards, and other financial products. A person’s credit score determines how easily they can get loans, deals, and more.
What is a CIBIL suit, and how does it work?
Many times, borrowers may default on payments for a variety of reasons. These could include a shortage in finances, intentional non-payment of loans, and more. A suit filed in CIBIL meaning refers to legal action taken by creditors or lenders when there are unpaid debts. It is legal action taken against the borrower who has defaulted on payments. When this occurs, the lender files a lawsuit against the borrower and notifies CIBIL about the filing.
If a suit has been filed against you and reported to CIBIL, it could affect your credit report for the next seven years. This can negatively impact your ability to avail loans, credit cards, and other financial services.
How can you remove a suit filed in CIBIL?
1. Get your CIBIL report
When dealing with a CIBIL suit, the first action is to obtain a copy of the report filed against you. This can be done via CIBIL’s official website. Reviewing the report can help you understand why it has been filed and any other related issues and help you plan your next steps.
To obtain your CIBIL report, visit their official website, provide the relevant information, and pay the charges to view it.
2. Identify the Suit Filed Status
After obtaining your CIBIL report, make sure to go over each detail carefully. This will help you find the suit’s status, usually displayed under the “Account Information” section. It could be displayed as a “Wilful Default” or “Suit Filed”.
This section includes essential information such as the filing date, the lender who filed it, the current status of the lawsuit, and the total amount payable.
3. Contact your lender
Clear communication with your creditor can help you arrive at a resolution more efficiently. After getting your report and determining its status, you must contact the lender or institution that filed it and discuss options for resolving it. This is vital in recovering your credit history and credit score.
Some important points to discuss with your lender include the outstanding amount, additional fees or charges, why the suit was filed, and any possible settlements and payment plans.
4. Pay your outstanding dues
To remove or clear the status of “suit filed,” borrowers must settle the amount with their lenders. There are many ways to do this: total payments, negotiated settlements, or payment plans. Some options include paying the outstanding balance at once, negotiating a settlement with the lender for a reduced sum, or creating a payment plan that works for you.
5. Get a No-Dues Certificate
After the payment has been negotiated and settled, getting a “No Dues Certificate” from the lender is crucial. This document proves that you have paid off the amount and resolved the matter. To obtain this certificate, individuals must send a formal request to their lenders, provide proof of payment, and ensure that their certificate specifies no outstanding balances.
6. File a Dispute
It is essential to remove the CIBIL suit from your records for a healthy credit report and history. After receiving your No Dues Certificate, file a dispute with CIBIL to have your records altered. The steps for filing a dispute are available online.
All you have to do is visit CIBIL’s Dispute Resolution page, the “Consumer Resolution” section, and click “Consumer Dispute Resolution”. Here, you will be asked to provide information like the lender’s name, the account number, and the reason for the dispute. After entering this information, you can upload your No Dues Certificate and submit the dispute form.
7. Monitor the dispute resolution process and review the updated CIBIL report
After submitting your dispute resolution form, CIBIL typically takes up to 30 days to address and settle complaints (this number may vary from situation to situation). However, checking in on your submission and monitoring the process regularly is essential. Individuals can log into their CIBIL accounts and visit the “Consumer Resolution” section to monitor the dispute settlement. There is a “Resources” section where they can check the case status. After resolving the dispute, individuals can get a new copy of their CIBIL reports to ensure the suit filed section has been removed.
Wrapping up
A person’s credit score and report can massively impact their financial standing and ability to obtain loans and other economic resources. A CIBIL suit filed by lenders could adversely affect their financial stability. Conducting a credit score check and maintaining good credit regularly is essential to prevent this. This can be done by making timely loan payments, having a low credit utilisation ratio, and more.
For expert guidance on your financial journey, visit Tata Capital’s website or download the app today!
31 December 2024
6 mins read
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