CIBIL scores significantly influence financial decisions, from loan approvals to interest rates. A strong score enhances access to favourable credit terms, while a low score can hinder financial opportunities. Yet, concerns over the transparency, accuracy, and handling of credit data continue to grow.
Consumers frequently report errors in credit reports, delays in updating corrected information, and difficulties in improving scores—even with responsible credit behaviour.
These inaccuracies can harm an individual's financial reputation and result in unfair lending outcomes.
Equally troubling are instances of unauthorized credit inquiries and data access, often without the individual's knowledge or clear consent.
Victims of such actions are advised to raise disputes through the myCIBIL portal and alert the credit bureau immediately.
In 2024, the Supreme Court of India raised alarms over the practices of credit bureaus like CIBIL, questioning their compliance with the Credit Information Companies (Regulation) Act, 2005 and the fundamental right to privacy outlined in the Puttaswamy judgment.
The Court highlighted concerns about informed consent and data sharing with banks and NBFCs.
Public discontent is growing, with users on platforms like X accusing CIBIL of being opaque and unaccountable.
Critics argue that consent is often vaguely bundled within loan agreements, undermining transparency.
Though the RBI mandates data transparency and fair practices, enforcement remains inconsistent.
The Digital Personal Data Protection (DPDP) Act empowers individuals with rights to correct or erase data and seek redressal, offering a framework for accountability.
Regular credit monitoring and timely repayments remain key to maintaining a healthy credit profile.
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