We receive representations from consumers that banks refuse to share credit report even if they decline credit. Is there any redressal mechanism, which directs its members to adhere to undertaking to share the credit report with consumers?

 

CIC Act requires members to share the borrower’s credit report with him/ her in case of a loan decline. Borrowers can get details of their credit report from CIBIL by contacting our consumer information cell and quoting the nine digit control number as also providing proof of their identity. In case of difficulty in getting this control number from the lender, they can still approach the consumer cell in CIBIL with all the details such as which bank requested for their credit report, approximate date, etc. and CIBIL’s cell will endeavor to assist the borrower in getting the report details.

 

The awareness about role of CIBIL is quite low. Please comment.

 

The reason for this is that we have not gone to the consumer directly. Our customers are financial institutions, NBFCs and Banks and we have been interacting with them only. But we have expanded our reach by regular presence in media. Now we are working on consumer education plan to educate our customers.

 

There is general reluctance to share with consumer. How do you explain that?

 

CIBIL works on the principle of reciprocity; this means that only institutions which share information with CIBIL can access information from it. Today when the opportunity is opening up,***** the value will be added as we go directly to the customer. Quality of data, which is our lifeline, will also improve. We are already in the process of implementing the legal changes, which are required by the CIC Act. This way the complete format is undergoing a change. Now we need a window to solve what all is disputed which will be open to both CIC and the lender for 30 days.

 

Please tell us about the infrastructure being put in place for reaching out Direct to Customers.

 

You will appreciate that talking direct to customer is a project by itself for which we have to have people trained to answer the enquiries and we need a BPO for that. Then process of validation also needs to be worked on. We will have separate cell to deal with customers, as it will involve disclosures and disputes etc. We are in the process of developing technology and infrastructure to support this process and we will take sometime to finalize and implement this.

 

There are products, which are available overseas where credit is locked or they disallow people to view their credit history without their specific approval. Do you see these kinds of products coming in India in the future?

 

It is quite futuristic as of today but things are changing fast. We launched the first generic score in 2007 and soon we are launching the first personal loan score. We are also looking at other products, which are value added ones. Moreover we are also working with RBI on Mortgage repository.

 

Would you like to give a message to our consumers?

Credit Information Bureaus help credit penetration by providing objective information on borrowers to the lending institutions. CIBIL aims at creating a sound lending culture in the country by helping both the borrowers and the lenders in the process of credit transaction. Financial discipline and sensitivity in repaying of loans will not only aide in accessing credit at better terms but also contribute in the growth of the country’s economy.

About CIBIL »

CIBIL is ISO 27001:2005 certified- the most recognized security standard in the world and is one of the 1000 companies in the world, which have achieved ISO 27001 certification, and one of the first few in India. CIBIL provides comprehensive credit information on consumer and commercial borrowers to credit grantors in India. It’s advanced analytic and risk management tools help credit grantors mitigate risk and ensure superior portfolio performance. CIBIL has two divisions- Consumer Bureau (launched in 2004 with 4 million records) and Commercial Bureau (launched in 2006 with 0.7 million records). CIBIL has grown phenomenally in the last five years, and today houses credit histories on over 137 million trades across individuals and businesses and its 164 strong member base includes all leading banks, financial institutions, non-banking financial companies and housing finance companies.

 

*Score cards are standard formulas devised by credit information companies for deriving a credit score for a consumer which indicates the risk of his defaulting. Higher the score less are the chances of the customer defaulting

** Loans on which consumers have paid on time

*** Loans on which consumers have delayed/defaulted on their obligations

**** Identity theft is when another person uses your personal details obtained by them illegally to pose as you and take credit/commit fraud in your name

***** Under the Credit information companies act it will be mandatory to share the consumer’s own report with him