God... I have never heard one word soo many times before!!!
I think by now everyone knows what CIBIL is and what they do!! For someone who does't:
CIBIL: Credit Information Bureau (India) Ltd
They basically have all these financial organizations (banks) as their members. These members will maintain a record of all their end consumers (i.e you, me and everyone like us), their loans, credit cards, repayments and defaults (yeah thatz what they claim!!) with the CIBIL.
When you apply for a new loan or a credit card the banks would verify your records with the CIBIL and if you have a clean record then the loan is processed. Else the banks would throw your case right back at u!!
Now lets talk about what exactly is a clean report!! I believe, that the only way you could be a clean customer in your CIBIL report is, if this is your first ever loan or credit card you are applying for. Don't jump off your seats, I will tell you why I say that:
statutory warning: I have noticed that most the CIBIL issue complaints are on credit cards and not on loans (loan closure letters are given to the consumers and ppl do actually keep them safe!! but there are no closure letter given on credit cards!!! and even if they do ppl tend to loose it atleast after not using that particular credit card for years!!)
(1) you held a credit card ever in your life only becoz they said there was no annual fee on it!! and before the year ended for some reason you decided you won't hold that credit card anymore!!! : surprise.... you have been charged an annual fee and a interest for that and an interest for the interest and bhoom 4 years down the road there is an outstanding of Rs. 15,000 in your name. (I bet you never knew how much you owed them!!)
(2) you had a late payment fee of Rs 100 outstanding in your credit card while you closed it. You disputed with your bank on that and the customer support assured you that its ok now that you have closed your credit outstanding, they would wave you off that charge. You are all happy saving that 100 bucks!! guess wat, you are a CIBIL defaulter with an outstanding of Rs 21000 some 6 years down the road!!
(3) you have all the proof and receipt for making your last payment to the credit cards. flash news: it doesn't matter. Nobody asks you any proof of being clean!! only you know you have been a loyal pay back machine!!! no one else cares!!!
(4) Well let just say some bank denies you a loan / credit card on the basis of this report. you also genuienly want to settle it so it would have affect your credit history for years to come. You have no clue of who do you owe and how much and for wat account!! No on shares that info with you!!
(5) alright, you go to the cibil website (www.cibil.com) asking for a credit report on yourself. They do not entertain your request until and unless you have a 9-digit control number from the banker who has declined your loan / credit card application based on the credit report they have pulled on you with the CIBIL. Now, you go to the banker and request that 9-digit number. Banker would say that is confidential and we cannot provide you the same!! And finally the CIBIL will close your case saying "sorry, we cannot help you with that control number". KAPEESH!!
NOW THE GREATER ISSUES:
Did you know that this database with CIBIL has all your personal information and you are denied of it!!??
Did you know that CIBIL has no strong system in place to validate any of this information?
Did you know the RBI's complaint form is soo not user friendly!!??
Did you know RBI takes atleast 3 months to investigate such issues if a complaint was posted?
Did you know that CIBIL is not even a public authority!!!??
THEN WHAT ON EARTH MAKES CIBIL SOO DAMN POWERFUL WHEN IT HAS A DATABASE FULL OF UNRELIABLE PERSONAL INFORMATION ABOUT EVERY TAX PAYER IN THE COUNTRY!!