The RBI imposed penalties on all four credit bureaus for non-compliance

[TechnoFinoTechnoFino is verified member.]

On June 26, 2023, the Reserve Bank of India (RBI) imposed penalties on several credit information companies. CRIF High Mark Credit Information Services was fined Rs 25.75 lakh, Equifax Credit Information Services Rs 24.25 lakh, TransUnion CIBIL Rs 26 lakhs, and Experian Credit Information Company of India Rs 24.75 lakhs.

The RBI, in a press releases, stated that these credit bureaus failed to comply with certain provisions of the 'Credit Information Companies (Regulation) Act, 2005. Additionally, the RBI found that certain data maintained by these companies was inaccurate and incomplete.

This action was taken due to repeated complaints from numerous customers. Banks and credit reporting agencies in India often disregard the accuracy of our credit data, causing significant inconvenience for customers who must plead for corrections. When customers request the credit bureau to rectify errors in their credit reports, they are often instructed to contact the banks directly. Conversely, banks sometimes redirect customers to the credit bureau. A proper grievance redressal system is needed to address the issues faced by customers concerning their credit reports.

The RBI has announced its intention to establish such a system soon. It should also formulate comprehensive guidelines for all credit bureaus and banks regarding data reporting and error rectification. This will help ensure a more reliable and efficient credit reporting process.

 

[Bugs Bunny]

Finally RBI is waking up to the pathetic services of the Credit bureaus and has started to impose fines. A welcome move indeed.

RBI clamps down on 4 credit bureaus for non-compliance

The penalties by the apex bank ranged from Rs 24 lakhs to Rs 26 lakh.

www.moneycontrol.com

 

[Strange]

CRIF and EQUIFAX, Both are pathetic credit bureaus but CRIF is the most pathetic credit bureau in India and they deserve it.

 

[SSV]

Finally RBI is waking up to the pathetic services of the Credit bureaus and has started to impose fines. A welcome move indeed.

RBI clamps down on 4 credit bureaus for non-compliance

The penalties by the apex bank ranged from Rs 24 lakhs to Rs 26 lakh.

www.moneycontrol.com

Good on you , RBI.... At last...
These bureaus are pathetic as far as the customer service is concerned. For some of them it is even very hard to reach them ( to talk to ). I have subscriptions for all the four...

I think the penalty is just of a token in size but the approach is good, but for next time it should be hefty to really mean it...

 

[thewittypanda]

RBI has imposed monetary penalty on all 4 credit bureaus viz CIBIL, Experian, CRIF & Equifax for non-compliance. Monetary Penalty imposed mostly due to not maintaining accurate data and non-correction of information of borrowers for more than 30 days. Find more details here :-

Reserve Bank of India - Press Releases

 

[helloworld]

I like this one:

https://m.rbi.org.in//Scripts/BS_PressReleaseDisplay.aspx?prid=55906

about: the bank had levied penal charges in certain accounts for late payment of credit card dues though the customers had paid the dues by the due date, through third party platforms.

 

[Strange]

I like this one:

https://m.rbi.org.in//Scripts/BS_PressReleaseDisplay.aspx?prid=55906

the bank had levied penal charges in certain accounts for late payment of credit card dues though the customers had paid the dues by the due date, through third party platforms.

correct link https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=55928

 

[D₹V]

I would like to ask mods to merge this thread to original one.

 

[Anil_Singh]

CRIF ko meri dua ka asar hua hai.

IDFC Bank made multiple attempts to remove wrong late payment from my credit report. They ignored them and do not even care for RBI Ombudsman and straight away lied to them that they have removed wrong late payment from my credit report.

 

[Fintellect]

CRIF and EQUIFAX, Both are pathetic credit bureaus but CRIF is the most pathetic credit bureau in India and they deserve it.

Holy True.

 

[Fintellect]

CRIF ko meri dua ka asar hua hai.

IDFC Bank made multiple attempts to remove wrong late payment from my credit report. They ignored them and do not even care for RBI Ombudsman and straight away lied to them that they have removed wrong late payment from my credit report.

I got 5000 compensation from IDFC but RBI is useless always protect BANKs, even they closed your complaint by giving some lame clauses that you cannot appeal against the decision. Even if Bank don't respect the decision you cannot complaint the same to RBI.

 

[Anil_Singh]

I got 5000 compensation from IDFC but RBI is useless always protect BANKs, even they closed your complaint by giving some lame clauses that you cannot appeal against the decision. Even if Bank don't respect the decision you cannot complaint the same to RBI.

Yes. They closed my case with the same clause. I cannot even appeal it. Isiliye bhagwaan se dua kiya.

 

[SSV]

CRIF ko meri dua ka asar hua hai.

IDFC Bank made multiple attempts to remove wrong late payment from my credit report. They ignored them and do not even care for RBI Ombudsman and straight away lied to them that they have removed wrong late payment from my credit report.

I will write down my experiences (briefly) with all 4 bureaus as a premium subscriber (Using Cibil for 4 years and CRIF, Experian & Equifax just this year).

My Credit Bureau Experience Journey - Part 1
Experian


Disclaimer: This is just my experience , not a comprehensive review of their products and/or services..... YMMV​

Annual fee of ₹499 (including GST) --- My opinion utter waste of money. Your subscription money is down in the drain.
Free report is as good as paid except that we get "Premium plan subscriber' badge , in which there is nothing premium in there.

Non functional score simulator ( no matter whatever the input is, output is always +8 score),
No option to refresh (No link or no push button).God knows whether it is auto refreshing on open or periodically refreshing, no refresh date on dashboard
My secured loan (OD) classified as unsecured( all other 3 bureaus reported correctly). Took good 4 days to talk to someone after rasing the issue online and got standard answer 'wait for 30 days', I doubt anything happens after 30 days, it may even take 3 months or longer by the sound of it.
Very "Uncustomarily customer support" ( if there is a word like that )
The above were the salient features of Experian permium subscription plan that I was previliged to experience...

A few SS of Experian premium...








---------
EDIT 1 (28/06/2023)
Would like to elaborate on my experience in contacting customer support:

When I found a secured loan classified as unsecured loan in the report, I tried to contact their suppoprt on the number given in their web site after registering my request online.
There is no answer from the phone and it kept on disconnecting itself for consecutie two days( I think).
Then I wrote to their nodal officer about this and still wating for his/her reply (already it is more than a week).
Then tried again contacting by phone numer, this time I am lucky, call gets connected but they played musical chairs for sometime by advising me to contact this number, that number etc. and at the end, the support person gave me the stock reply 'See ya in 30 days' by throwing some call reference number on my face and adivsed me to mention this reference number in future so that I don't nee to explain my agony again and again...

I am still unsure if they grasp my issue.
My issue of classifying the loan as 'unsecured' instead of "secured" should not have arisen in the first place , as "Collateral Value" field contains the correct value but suprisingly Collateral Type doesn't conatain any value.
All other three bureaus contain correct values for these two fields. It means the data sent by ICICI to all the four bureaus was correct. It is only the experian's data capture/interpretaion is at fault. Biazzare thing is for me, there is no one to talk to and explain this simple point... GOD knows how long this will take to resolve (if at all) meanwhile we customers have to experience the brunt of it.

That is why I called this as a "Uncustomarily customer support"

End of EDIT 1
---------------


the journey continues.....

 

[Strange]

I will write down my experiences (briefly) with all 4 bureaus as a premium subscriber (Using Cibil for 4 years and CRIF, Experian & Equifax just this year).

Disclaimer: This is just my experience , not a comprehensive review... YMMV


1) Experian-- annual fee of ₹499. --- My opinion utter waste of money. Your subscription money is down in the drain.
Free report is as good as paid except that we get "Premium plan subscriber' badge , in which there is nothing premium in there.

Non functional score simulator ( no matter whatever the input is, output is always +8 score),
No option to refresh (No link or no push button).God knows whether it is auto refreshing on open or periodically refreshing, no refresh date on dashboard
My secured loan (OD) classified as unsecured( all other 3 bureaus reported correctly). Took good 4 days to talk to someone after rasing the issue online and got standard answer 'wait for 30 days', I doubt anything happens after 30 days, it may even take 3 months or longer by the sound of it.
Very "Uncustamarily customer support ( if there is a word like that )
The above were the salient features of Experian permium subscription plan that I was previliged to experience...

A few SS of Experian premium...
View attachment 20952


View attachment 21022


View attachment 21025


the journey continues.....

You can refresh it for free through WhatsApp chat but you will get latest credit report over email.

 

[SSV]

You can refresh it for free through WhatsApp chat but you will get latest credit report over email.

I am aware of that and I did that for quite sometime, just wanted to try the premium and see what I would get.. As I said there is nothing premium in premium, almost same as free report

 

[Strange]

I am aware of that and I did that for quite sometime, just wanted to try the premium and see what I would get.. As I said there is nothing premium in premium, almost same as free report

What about CRIF?

 

[SSV]

What about CRIF?

Will write about Crif, equifax and lastly cibil soon when I find some free time...
Watch this space... coming soon...

 

[Fintellect]

Yes. They closed my case with the same clause. I cannot even appeal it. Isiliye bhagwaan se dua kiya.

I further request you to go fill your complaint at District Consumer Forum. Best wishes.

 

[beingmohit]

On June 26, 2023, the Reserve Bank of India (RBI) imposed penalties on several credit information companies. CRIF High Mark Credit Information Services was fined Rs 25.75 lakh, Equifax Credit Information Services Rs 24.25 lakh, TransUnion CIBIL Rs 26 lakhs, and Experian Credit Information Company of India Rs 24.75 lakhs.

The RBI, in a press releases, stated that these credit bureaus failed to comply with certain provisions of the 'Credit Information Companies (Regulation) Act, 2005. Additionally, the RBI found that certain data maintained by these companies was inaccurate and incomplete.

This action was taken due to repeated complaints from numerous customers. Banks and credit reporting agencies in India often disregard the accuracy of our credit data, causing significant inconvenience for customers who must plead for corrections. When customers request the credit bureau to rectify errors in their credit reports, they are often instructed to contact the banks directly. Conversely, banks sometimes redirect customers to the credit bureau. A proper grievance redressal system is needed to address the issues faced by customers concerning their credit reports.

The RBI has announced its intention to establish such a system soon. It should also formulate comprehensive guidelines for all credit bureaus and banks regarding data reporting and error rectification. This will help ensure a more reliable and efficient credit reporting process.

The RBI already has extensive guidelines in place for all banks and lending services. That does not prevent them from breaking the law. The onus is always on the victim to get justice. The worst part is, there is no compensation provided to the victim for such actions by the banks.
Merely framing guidelines is just half of the job. There should be strict penalties for the perpetrators and fair compensation for the victims.

 

[SSV]

What about CRIF?

Here is our "Strange" mate's favourite CRIF ... ...

My Credit Bureau Experience Journey - Part 2
CRIF
Disclaimer: This is just my experience , not a comprehensive review of their products and/or services..... YMMV ​

Annual fee ₹900 ..
Inconsistent scoring mechanism hence very volatile .. uses their own random mechanism to determine the score (not based on generally acceptable industry standard).

I am not sure how many lenders use this bureau to determine the creditworthiness of their customers, it would most likely not provide the true, stable and dependable customer credit rating in my view..

1) They are not incorporating "Credit mix" as a co-factor in determining their scoring. Most of the bureaus suggest us to maintain a good and healthy credit mix ratio between 'Secured and Unsecured loans', which industry generally considers as a fair factor. Not for CRIF..
When my 1st secured loan (1 month ago) was added to the then current portfolio of 6 Credit Card accounts, I think my score was reduced marginally( may be around 10, could not remember exactly).

Today my 2nd secured loan (gold loan) was added and guess what my score was down by MASSIVE 103 points citing the reason "Considerably high proportion of active contracts" .
I am not sure what they mean by high proportion of active contracts to WHAT? active contracts to total contracts(open+ closed) or or high recently open contracts? not sure. Anyway I have total 6 Credit cards and 2 Secured loans for the last 5 years and 4 enquiries.
In the last one year 3 CCs and 2 Secured loans, they are referring "Proportion of active contracts".... I have all 8 contracts which are active. No closed accounts... Anyway I will get better understanding going forward, may be in another one year.

2)The CRIF's main scoring factors keep changing

Generally bureaus keep their main scoring factors fairly stable ( whatever the basis they consider appropriate.) like CIBIL says 4 factors. payment history, credit utilization, credit mix and enquiries. For CRIF these factors change randomly. Here is an example:

As on 18th June : 4 factors: ( "missed recent payments" appeared twice)



As on the 24/06/2023, Added a new factor:



As on today (28/06/2023) , the GIANT score killer comes in " Considerably high proportion of active contracts" and out goes two factors i.e. "decent utilization of credit limit" and "consistent decrease in o/s balance."





I guess they want to provide really really latest credit worthiness by choosing the dynamic relevant factors at that point in time , but in the end it is depicting highly unstable and inconsistent score. By following this approach, this month say one person has highly desirable score but in a very short period the same person becomes highly undesirable person from the credit worthiness perspective because of this dynamic scoring factors.

This is not useful for the businesses as well (i.e. for Lenders).

I am sure my score will go up a bit later, meanwhile the score is too dynamic for my taste which doesn't reflect the reality in my humble opinion...


3) Design of the login screen( for the registered user) not the best practice to say the least....

When we are registering for the first time we have to give all relevant details to identify ourselves like name, pan, mobile nu, email etc.. This is normal.
What is not normal is , after registering and paying for the subscription also, we need to enter all these details each and every time for login to check our report... How lazy they are. They could not even a design new simple login screen for the registered users.. I searched everywhere I could not find registered users login page. If any one shows a simple login screen , I will eat my hat...





4) Thankfully I don't need to contact their customer support yet, hence no comments on support side.


5) No score simulator (thank GOD)

6) No Alerts.

Alerts are particularly useful in the case of a new enquiry / new account... In this category only CIBIL takes the winner's prize...

7) One last "good" thing about CRIF is, this is the first agency that updates the credit data at the earliest out of all the four... By today I have all my 8 accounts reported in CRIF . Experian & CIBIL have 7 accounts and Equifax has 6 accounts ....


The journey still continues.....