Do your loan applications repeatedly get rejected due to the presence of an unknown default loan account on your CIBIL report? When you check your CIBIL report, you notice that you never took out that particular loan or credit card in your life. In this situation, two possibilities may arise: the unknown default loan account occurred due to a data mixing error with your CIBIL report, or someone misused your identification details to take out a loan. In this article, we will discuss both possibilities and the way to remove fraud loan from CIBIL report.

Case 1: If the unknown loan occurs due to a data mixing error:

As one of the leading Credit Information Companies (CICs) in India, TransUnion CIBIL maintains huge credit information for each borrower and their loan repayment records. Sometimes, when a customer’s identification details (Name, DOB, PAN Details) are very similar to yours; then a data mixing error happened.

As a result, the unknown loan accounts, and incorrect contact details can be mentioned in your CIBIL report. You can remove all the incorrect information & unknown loan accounts from your CIBIL report easily by raising an online dispute in CIBIL and by sending a complaint letter to CIBIL. 

Case 2: If a loan fraud happened to you:

In the digital era, loan fraud is very common in terms of fake loan applications, Credit Card scams, personal loan scams, etc. Before that, you have to know what is loan fraud. Loan fraud occurs when a scammer uses your identification details to take out a loan, this is also well-known as Identity theft. 

Scammer gets your personal information in several ways, through any phishing emails, messages associated with a link, or by hacking your device (through dark web cookies/ malware permitted by you) or using your KYC documents. Fraudsters misused your personal identification details to secure a loan in your name, leaving you responsible for paying back the debt.

Since you are unaware of the fraud loan and did not pay for it; due to nonpayment, the loan became delinquent and it hampers your CIBIL score gradually. Now, when you applied for a new loan, you came to know that such kind of forgery happened to you and the particular fraud loan destroyed your creditworthiness completely.

In this situation, you want to remove the fraud loan from your CIBIL report. But one thing you have to consider is that the removal process will little bit complicated & time taking; in fact, there is very little chance of removing the fraud loan from CIBIL report. But you should take a few actions against the lender loan mentioned in your CIBIL.    

Steps to be followed to remove fraud loan from CIBIL report:

Step 1: Check your CIBIL report:

If you came to know that a fraud loan has been issued in your name, first you should check your CIBIL report to get the loan information (Lender name, Account number, Loan Sanctioned Date, etc.). For this purpose, visit TransUnion CIBIL’s official website (www.cibil.com) and get your annual free CIBIL report. Now, review the whole report & identify the fraud loan.

Step 2: Raise an online dispute & send a complaint letter to TransUnion CIBIL:

Once you have identified the fraud loan, raise an online dispute in CIBIL as “The loan account does not belong to me” and write a complaint letter to CIBIL. In the complaint letter, request them to remove the loan and attach your KYC documents.

CIBIL will forward the complaint to the concerned lender for verification. However, since the fraudster has used your KYC to take the loan; that’s why after verification, CIBIL declined your request from their end.

Step 3: Contact with the lender:

In a fraud loan case, you should contact the lender directly. You can send an email to their customer support or to the grievance redressal officers to get clarification about the loan. And, you should ask them for the loan agreement paper, loan sanction letter, loan statement, etc.

In fact, you can notice fake signatures & manipulated information are present in those documents. In most cases, bank officials are also involved in such types of fraudulent activities.

That’s why they will not agree to remove the fraud loan from CIBIL report and will not cooperate with you properly. In that case, you can complain against the lender to the higher authority.

 Step 4: Complaint against the bank:

If the lender rejects your complaint; you can go for an RBI Ombudsman complaint against the lender (https://rbi.org.in/Scripts/Complaints.aspx). In the complaint, mention the whole story (Previous communications with the lender) & attach the details provided by the lender.

If the loan is sanctioned through a fraud online application, you can register a complaint to the National Cyber Crime Reporting Portal (https://www.cybercrime.gov.in/).

You can register an online grievance against the lender to the National Consumer Helpline (https://consumerhelpline.gov.in/ ).

If your concern remains unresolved, then you have to go for legal action. you can register a case against the lender to the National Consumer Dispute Redressal Commission (https://ncdrc.nic.in/cc.html). It may take a long time to resolve the matter. Once it’s proved that the lender committed fraud with you, the Judge will order them to remove the loan from your CIBIL report immediately.

Read more:

• Raise a online dispute in CIBIL
• How to remove written off status from CIBIL report
• How to remove settled status from CIBIL report?