Paid Your Credit Card Dues but Still Showing Outstanding? A Real Case

Can you imagine making all your EMIs for your credit card purchase and then finding out later that you still have to pay about ₹20,000?

This was the case with a recent dispute in Delhi where a customer of Kotak Mahindra Bank had made all his 12 installments for the purchase of a television and had paid back a total amount of about ₹44,990. The bank however asked him to pay an additional amount of ₹19,788 and threatened to affect his CIBIL score. The Delhi State Consumer Disputes Redressal Commission finally ordered the bank to waive off the claim and pay a compensation of ₹1.5 lakh.

Important Learning from the Case: Maintain Your Own Proof

From this case, it becomes evident to every individual that making a payment against a loan or EMI is not all there is to maintain a good credit record.

It becomes very essential to keep the records of payments made, bank statements, loan closure documents, etc. The proof will come handy in case a lender reports any incorrect details against an individual.

The CIBIL report also clearly states that it does not have the authority to change the details reported by the lenders independently.

Do Not Wait Until You Need a Loan

A mistake in the credit report becomes more aggravating if you notice it at the time of applying for fresh credit.

A free credit report gives you the opportunity to scrutinize your accounts prior to taking any borrowing decisions. In case you don't know about how to check credit report, begin by checking the accounts, payment history, balance amount, and last enquiries.

A paisabazaar credit report or experian credit report would also be helpful, but always be sure from which bureau you are getting the report and what details it comprises.

PrimeScore assists the borrowers in recognizing their credit-report mistakes, organizing evidence and filing the relevant dispute.

Check your credit report before taking any borrowing decision, especially when you have already closed some loans or credit card EMIs.

What Do You Do When the Numbers Don’t Add Up?

For starters, compare the easiest data – what the creditor says, your payment data, and what’s shown on your credit report.

Knowing about what is credit score and credit score meaning will help you, but the report that backs the figure is equally important. An inaccurate balance can play an important role when applying for a loan for low credit score.

In case of discrepancies, make your claim to the creditor and the concerned credit bureau following the proper dispute procedure. According to CIBIL, a dispute can take up to 30 days, depending on the response from the credit institution.

Also, PrimeScore can be of assistance to those who want to find out where their mistake lies.

Don't accept an unexplained outstanding amount without checking the underlying transaction and payment history. If your records and credit report do not match, get the discrepancy reviewed before it affects your next financial decision.

FAQs

1. Can a paid loan still appear incorrectly?
   Yes. Reporting errors can occur and should be disputed when identified.

2. What proof should I keep after paying EMIs?
   Keep receipts, bank statements, account statements and closure documents.

3. Can CIBIL directly remove an incorrect entry?
   No. The relevant credit institution must authorise the correction.

4. How long can a CIBIL dispute take?
   CIBIL says approximately 30 days, subject to the lender's response.

5. Can PrimeScore help with credit-report errors?
   Yes. It can help identify potential inaccuracies and organise dispute documentation.