Unauthorized loan applications & CIBIL enquiries by Freo PayLater

[White_Fox]

I recently opened an account with Freo PayLater.

At around midnight, I started receiving SMS from different lenders about loan applications under process which I never applied for. I checked my CIBIL score the next morning to see that multiple enquiries were made by different lenders (Incred Finance, L&T Finance and Early Salary). I also started receiving calls for loans from InCred Finance. Thankfully, the CIBIL score stayed the same.

I raised email complaints with the lenders to cancel any unauthorised loan applications and remove the CIBIL enquiries (along with SMS & enquiry screenshots).

1. InCred Finance:
   They informed me that Freo has applied for a personal loan in my name, so that resulted in the enquiry and can't be removed. But firmly stating that I had not applied for any loan and thus it was unauthorised, they eventually removed the enquiry within 5-6 days.
   
   
2. L&T Finance:
   They informed me the same that Freo has applied for a personal loan in my name, thus the CIBIL enquiry. They asked me to share the full CIBIL report. I shared it and they are currently processing it.
   
   
3. Early Salary (Fibe):
   They are saying that Money Tap (a partner of Freo) has shared my details with them to apply for a personal loan. They are constantly telling me to contact Money Tap directly and they would do nothing themselves. I am planning to escalate to the RBI Ombudsman after 30 days.

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UPDATE (11-Aug-2024)

W

Post in thread 'Unauthorized loan applications & CIBIL enquiries by Freo PayLater'

Aug 11, 2024

I also suggest you to check another credit bureaus ( CRIF High mark, Experian, Equifax), in my case freo pay did 3 enquiries on CIBIL 1 on CRIF High mark and also 1 on Equifax

Any Updats?

L&T had informed that they would not be able to remove the enquiry as I had “apparently” given consent for the loan (not true). Therefore, I escalated the matter to the RBI Ombudsman. They removed the enquiry only after escalation to the RBI Ombudsman after multiple telephonic conversations with their grievance redressal team. They had stopped...

• White_Fox

 

[SSV]

I recently opened an account with Freo PayLater.

At around midnight, I started receiving SMS from different lenders about loan applications under process which I never applied for. I checked my CIBIL score the next morning to see that multiple enquiries were made by different lenders (Incred Finance, L&T Finance and Early Salary). I also started receiving calls for loans from InCred Finance. Thankfully, the CIBIL score stayed the same.

I raised email complaints with the lenders to cancel any unauthorised loan applications and remove the CIBIL enquiries (along with SMS & enquiry screenshots).

1. InCred Finance:
   They informed me that Freo has applied for a personal loan in my name, so that resulted in the enquiry and can't be removed. But firmly stating that I had not applied for any loan and thus it was unauthorised, they eventually removed the enquiry within 5-6 days.
   
   
2. L&T Finance:
   They informed me the same that Freo has applied for a personal loan in my name, thus the CIBIL enquiry. They asked me to share the full CIBIL report. I shared it and they are currently processing it.
   
   
3. Early Salary (Fibe):
   They are saying that Money Tap (a partner of Freo) has shared my details with them to apply for a personal loan. They are constantly telling me to contact Money Tap directly and they would do nothing themselves. I am planning to escalate to the RBI Ombudsman after 30 days.

Moral of the story to everyone:
Never , ever apply for any products from any third party, unknwon, fintechs etc ... By doing so, you are inviting troubles..
Try always with the established players in the industry....

Thanks for the heads up mate... Sorry that it happened to you ...

 

[flash007]

I also got to know about this t&C which is written on their website,
I dont think this complies with any guidelines, or either no guideline is made on this yet.
We should raise voices against them on twitter/linkedin and tag RBI & freo both to take some actions

 

[suhasgirish22]

View attachment 55723
I also got to know about this t&C which is written on their website,
I dont think this complies with any guidelines, or either no guideline is made on this yet.
We should raise voices against them on twitter/linkedin and tag RBI & freo both to take some actions

Dear @flash007 ,

I have faced a similar issue. I am very careful when using fintech apps and always read the T&Cs thoroughly before applying for any credit product. In their documents, there is no mention of having the right to check the CIBIL score with a hard pull. I have gone through these terms in detail. We should find a way to address this issue, as they have placed two personal loan inquiries on my record as well.

Could you please share the current status of your inquiries?

 

[swarupgolui]

I recently opened an account with Freo PayLater.

At around midnight, I started receiving SMS from different lenders about loan applications under process which I never applied for. I checked my CIBIL score the next morning to see that multiple enquiries were made by different lenders (Incred Finance, L&T Finance and Early Salary). I also started receiving calls for loans from InCred Finance. Thankfully, the CIBIL score stayed the same.

I raised email complaints with the lenders to cancel any unauthorised loan applications and remove the CIBIL enquiries (along with SMS & enquiry screenshots).

1. InCred Finance:
   They informed me that Freo has applied for a personal loan in my name, so that resulted in the enquiry and can't be removed. But firmly stating that I had not applied for any loan and thus it was unauthorised, they eventually removed the enquiry within 5-6 days.
   
   
2. L&T Finance:
   They informed me the same that Freo has applied for a personal loan in my name, thus the CIBIL enquiry. They asked me to share the full CIBIL report. I shared it and they are currently processing it.
   
   
3. Early Salary (Fibe):
   They are saying that Money Tap (a partner of Freo) has shared my details with them to apply for a personal loan. They are constantly telling me to contact Money Tap directly and they would do nothing themselves. I am planning to escalate to the RBI Ombudsman after 30 days.

I also suggest you to check another credit bureaus ( CRIF High mark, Experian, Equifax), in my case freo pay did 3 enquiries on CIBIL 1 on CRIF High mark and also 1 on Equifax

Any Updats?

 

[White_Fox]

I also suggest you to check another credit bureaus ( CRIF High mark, Experian, Equifax), in my case freo pay did 3 enquiries on CIBIL 1 on CRIF High mark and also 1 on Equifax

Any Updats?

L&T had informed that they would not be able to remove the enquiry as I had “apparently” given consent for the loan (not true). Therefore, I escalated the matter to the RBI Ombudsman. They removed the enquiry only after escalation to the RBI Ombudsman after multiple telephonic conversations with their grievance redressal team. They had stopped responding before the RBI Bamboo.

Early Salary has refused to remove the inquiry till date. Even the RBI Ombudsman couldn't help as Early Salary shared consent approval which showed that I had deliberately applied for a loan. (Obviously, I did not consent to any loan whatsoever).

 

[suhasgirish22]

It has been the same case for me as well early salary is reluctant to remove it and they have not even responded to Ombudsman

 

[zaid_2913]

check below thread, successfully removed the enquiry.
Thread 'Unknown enquiry from early salary'
https://www.technofino.in/community/threads/unknown-enquiry-from-early-salary.22074/

 

[swarupgolui]

L&T removed the enquiry only after escalation to the RBI Ombudsman. They had stopped responding before the RBI Bamboo.

Early Salary has refused to remove the inquiry till date. Even the RBI Ombudsman couldn't help as Early Salary shared consent approval which showed that I had deliberately applied for a loan. (Obviously, I did not consent to any loan whatsoever).

Any way to talk with you White_Fox? today i received call from InCred Finance and he ask me you was put your pan card or not i said yes i put my pan card n0 then he said ok you confirm that you put your pan and enquiry cannot be removed from your report then i received this mail

 

[White_Fox]

Any way to talk with you White_Fox? today i received call from InCred Finance and he ask me you was put your pan card or not i said yes i put my pan card n0 then he said ok you confirm that you put your pan and enquiry cannot be removed from your report then i received this mail

You can DM me.
You should escalate the complaint to the RBI Ombudsman.

 

[swarupgolui]

You can DM me.
You should escalate the complaint to the RBI Ombudsman.

can't see any option to DM you, i already try to escalate the complaint to the RBI Ombudsman but it's showing As ( INCRED FINANCIAL SERVICES LIMITED is currently not covered under the Reserve Bank - Integrated Ombudsman Scheme, 2021, your complaint was registered with Consumer Education and Protection Cell (CEPC), RBI. )

 

[White_Fox]

can't see any option to DM you, i already try to escalate the complaint to the RBI Ombudsman but it's showing As ( INCRED FINANCIAL SERVICES LIMITED is currently not covered under the Reserve Bank - Integrated Ombudsman Scheme, 2021, your complaint was registered with Consumer Education and Protection Cell (CEPC), RBI. )

It says that it has already been dealt with. Did you lodge any previous complaint with the RBI?

DM: Link for DM

 

[swarupgolui]

It says that it has already been dealt with. Did you lodge any previous complaint with the RBI?

DM: Link for DM

No, I Didn't

I just saw InCred Finance also reject my cibil dispute..

 

[swarupgolui]

It says that it has already been dealt with. Did you lodge any previous complaint with the RBI?

DM: Link for DM

Now L&T Finance asking for KYC documents for further investigation ( Aadhar card front and back and Pan card ), i already give them full credit score reports ( cibil and CRIF High Mark ), should I give them KYC documents or not?

 

[White_Fox]

Now L&T Finance asking for KYC documents for further investigation ( Aadhar card front and back and Pan card ), i already give them full credit score reports ( cibil and CRIF High Mark ), should I give them KYC documents or not?

Same happened in my case. I had shared the requested documents and details. Then they removed the enquiry.

 

[flash007]

Dear @flash007 ,

I have faced a similar issue. I am very careful when using fintech apps and always read the T&Cs thoroughly before applying for any credit product. In their documents, there is no mention of having the right to check the CIBIL score with a hard pull. I have gone through these terms in detail. We should find a way to address this issue, as they have placed two personal loan inquiries on my record as well.

Could you please share the current status of your inquiries?

I have lodged multiple complaints in all companies and even to RBI.
All the inquiries have been removed from CIBIL & CRIF
but they haven't given any compensation demanded for mental harassment with RBI complaint.

 

[saniruidas]

Bro freopay ( former moneytap) send me I'm eligible for interest free pay later for 1 months again and again. Then I downloaded there app and tried before 1 months ago , and don't do KYC . Then they again sending me massage and put enquiry in credit bureaus.

So that I downloaded there app and do KYC, they instent approved me 4300 limit pay later. So there was a option bank verification via UPI or add bank account. UPI not working so I add bank details, then they send 1 RS for verification. Then added to to beneficiary . Then
When I tap to withdraw it's showing 1 month interest free , so I tap to full amount and submit withdrawal request. But it's showing pending and say wait to 2 to 3 minutes. But I checked again after 1 hours it's still pending. So I go to help section, their is no support expect email. In this FAQ section I saw their is convenience fees for withdrawal money.

So I mailed them there app don't inform or showing the convenience fees, and my payment also under pending. So cancel my request, I don't need any money if there is any convenience fees .

Next day I saw their is no reply, and app showing your service currently paused. So I thought they cancelled my payment, but my payment still showing in pending section. So I uninstalled the app .

After somedays I noticed a amount credited in my bank statement so I searched by the company neme I found the company and some moneytap link , then I again installed the app it's still showing service Paused, but the transaction history showing payment successful , then I saw no reply the mail still. So I searched there GRO / PNO , and mailed them also, but they still not give me reply. Now payment section showing repayment date 5 January with the principal amount and convenience fees. I haven't received any reply from their end .

So what do now ? If reply and denied so I can go to RBI but if they not reply then I need to wait for 30 days.

If they are not reply I need to pay full with convenience fees, is there any chance, after that they return if RBI told them ?

If I not pay convenience fees, they can report in cibil as default or EMI failed .

Thank you.