Atul580
TF Neo
For many of us, a good credit score is essential—it affects our ability to get loans, credit cards, and even financial security. But what happens when a financial institution fails to do its job, and you’re the one paying the price?
This is exactly what happened to me when PayU Finance failed to close my loan account on time and delayed updating my credit report for months, leading to a drop in my CIBIL score and unnecessary stress.
The Issue: Loan Closed, But Still Active in CIBIL
I had taken a loan from PayU Finance, and after full repayment, they confirmed the account was closed on March 2024. However, to my shock, when I checked my CIBIL report on December 20, 2024, the loan was still showing as active!
This incorrect reporting:
❌ Hurt my credit score, making it harder for me to apply for new credit.
❌ Caused unnecessary financial stress as I had to keep checking and following up.
❌ Forced me to subscribe to CIBIL services, adding an extra cost just to monitor my report.
RBI Rules on Loan Closure Updates
As per RBI guidelines, lenders must update the credit bureau within 30 days of closing a loan. If they fail to do so, they are required to pay ₹100 per day as compensation to the affected customer.
In my case, the delay was 286 days, which meant I was entitled to:
₹28,600 for delayed reporting (₹100/day)
PayU Finance’s Response – A Classic Case of Avoiding Accountability
Despite multiple complaints, PayU Finance initially compensated me only ₹2,000—a completely inadequate amount compared to what RBI rules state. After continued pressure, they increased it to ₹8,000, bringing the total to ₹10,000.
But is this enough? Absolutely not.
If I had missed an EMI for almost a year, they would have imposed heavy penalties, late fees, and reported me as a defaulter. Yet, when they make a mistake, they refuse to follow the same strict rules they impose on customers.
Escalating to RBI – A Consumer’s Right
Since PayU Finance was unwilling to compensate me fairly, I escalated the complaint to RBI’s Ombudsman under the Reserve Bank – Integrated Ombudsman Scheme (RB-IOS), 2021.
I have requested RBI to:
✅ Ensure full compensation as per their own ₹100/day rule.
✅ Investigate why PayU Finance repeatedly fails to update credit reports on time.
✅ Hold them accountable for unfair practices affecting multiple consumers.
Final Thoughts – Will RBI Enforce Its Own Rules?
Right now, I am waiting for RBI’s decision on my complaint. I have made it clear to PayU Finance that if RBI says ₹10,000 is fair, I will accept it. But if RBI rules otherwise, I expect full compliance with their directive.
If you’ve faced a similar issue, don’t stay silent. Financial institutions must be held accountable, and consumers must know their rights. Escalate your complaint to RBI’s Ombudsman, demand what is fair, and don’t let banks and NBFCs take advantage of you.
---
Have You Faced a Similar Issue?
If you’ve experienced delayed loan closure updates, unfair charges, or credit score damage due to financial institutions, share your story in the comments. Let’s spread aw
areness and push for stricter enforcement of RBI’s rules!
This is exactly what happened to me when PayU Finance failed to close my loan account on time and delayed updating my credit report for months, leading to a drop in my CIBIL score and unnecessary stress.
The Issue: Loan Closed, But Still Active in CIBIL
I had taken a loan from PayU Finance, and after full repayment, they confirmed the account was closed on March 2024. However, to my shock, when I checked my CIBIL report on December 20, 2024, the loan was still showing as active!
This incorrect reporting:
❌ Hurt my credit score, making it harder for me to apply for new credit.
❌ Caused unnecessary financial stress as I had to keep checking and following up.
❌ Forced me to subscribe to CIBIL services, adding an extra cost just to monitor my report.
RBI Rules on Loan Closure Updates
As per RBI guidelines, lenders must update the credit bureau within 30 days of closing a loan. If they fail to do so, they are required to pay ₹100 per day as compensation to the affected customer.
In my case, the delay was 286 days, which meant I was entitled to:
₹28,600 for delayed reporting (₹100/day)
PayU Finance’s Response – A Classic Case of Avoiding Accountability
Despite multiple complaints, PayU Finance initially compensated me only ₹2,000—a completely inadequate amount compared to what RBI rules state. After continued pressure, they increased it to ₹8,000, bringing the total to ₹10,000.
But is this enough? Absolutely not.
If I had missed an EMI for almost a year, they would have imposed heavy penalties, late fees, and reported me as a defaulter. Yet, when they make a mistake, they refuse to follow the same strict rules they impose on customers.
Escalating to RBI – A Consumer’s Right
Since PayU Finance was unwilling to compensate me fairly, I escalated the complaint to RBI’s Ombudsman under the Reserve Bank – Integrated Ombudsman Scheme (RB-IOS), 2021.
I have requested RBI to:
✅ Ensure full compensation as per their own ₹100/day rule.
✅ Investigate why PayU Finance repeatedly fails to update credit reports on time.
✅ Hold them accountable for unfair practices affecting multiple consumers.
Final Thoughts – Will RBI Enforce Its Own Rules?
Right now, I am waiting for RBI’s decision on my complaint. I have made it clear to PayU Finance that if RBI says ₹10,000 is fair, I will accept it. But if RBI rules otherwise, I expect full compliance with their directive.
If you’ve faced a similar issue, don’t stay silent. Financial institutions must be held accountable, and consumers must know their rights. Escalate your complaint to RBI’s Ombudsman, demand what is fair, and don’t let banks and NBFCs take advantage of you.
---
Have You Faced a Similar Issue?
If you’ve experienced delayed loan closure updates, unfair charges, or credit score damage due to financial institutions, share your story in the comments. Let’s spread aw
areness and push for stricter enforcement of RBI’s rules!
