CIBIL is an Organisation being used wrongly by banks in India. Though it is a good to have directive from RBI, it protects only the interest of the bank and there is no way you can fight your case against banks for removing your name from the negative list in CIBIL.
I have a long list of these from all the banks. What is RBI and finance ministry doing? Strip them of their license to operate in India?
ICICI, HDFC and other banks penetration into every segment has churned out high volumes with poor ratio of returns since the verification and allotment is not implemented properly. A repayment criteria of 99% is called DEFAULTING, while there many instances of payment evaded completely. Genuine repayment cases are targetted through court notices. Why cannot bank ask for closure/settlement/ termination letter from previous banks on a fresh loan application. Isn’t CIBIL way irrational for the consumer who has valid reasoning to defend the case?
Beware of these irrational stuff:
1.Settlement Letter - Settlement does not mean the account is closed. In credit card closure/ loan closure - Name is in CIBIL. No more loans can be availed? Pathetic state.
Settlement and closure may be done but name not removed from CIBIL
Any earlier denial or arguments with banks can bring your name into CIBIL