Section 21 of The Credit Information Companies (Regulation) Act, 2005. in hindi
- (1)Any person, who applies for grant or sanction of credit facility, from any credit institution, may request to such institution to furnish him a copy of the credit information obtained by such institution from the credit information company.
- (2)Every credit institution shall, on receipt of request under sub-section (1), furnish to the person referred to in that sub-section a copy of the credit information subject to payment of such charges, as may be specified by regulations, by the Reserve Bank in this regard.
- (3)If a credit information company or specified user or credit institution in possession or control of the credit information, has not updated the information maintained by it, a borrower or client may request all or any of them to update the information; whether by making an appropriate correction, or addition or otherwise, and on such request the credit information company or the specified user or the credit institution, as the case may be, shall take appropriate steps to update the credit information within thirty days after being requested to do so: Provided that the credit information company and the specified user shall make the correction, deletion or addition in the credit information only after such correction, deletion or addition has been certified as correct by the concerned credit institution: Provided further that no such correction, deletion or addition shall be made in the credit information if any dispute relating to such correction, deletion or addition is pending before any arbitrator or tribunal or court and in cases where such dispute is pending, the entries in the books of the concerned credit institution shall be taken into account for the purpose of credit information.
Summary
- Anyone applying for a loan or credit facility can ask the bank for a copy of the credit information the bank got from a credit company.
- The bank must provide this copy, but the applicant has to pay a charge set by the Reserve Bank.
- If a person finds their credit information is outdated, they can request the bank or credit company to correct it or add missing details.
- The requested entity has exactly thirty days to take appropriate steps to update the information.
- A credit company cannot actually change the file until the bank that originally provided the data certifies that the correction is accurate.
- If a legal dispute about the correction is currently pending before an arbitrator or court, no changes can be made, and the bank's original book entries will be used instead.
Practical examples
FAQ
1. Can I see the credit report a bank is using to judge my loan application?
Yes, you can request a copy of the credit information from the credit institution, subject to paying a specified charge.
2. How long does a credit company have to process an update request?
They must take appropriate steps to update the credit information within thirty days of being requested.
3. Can a credit company just delete a bad mark if I ask them to?
No, they can only make a correction or deletion after the concerned credit institution certifies that the change is correct.
4. What happens if I am fighting the bank in court over an incorrect loan entry?
If a dispute is pending before a court or arbitrator, the credit file cannot be altered, and the original entries in the bank's books will be relied upon.
Test yourself
Q1.Under Section 21 of The Credit Information Companies (Regulation) Act, 2005., how long does an entity have to take appropriate steps to update information after receiving a request from a borrower?
Q2.Under Section 21 of The Credit Information Companies (Regulation) Act, 2005., what must happen before a credit information company can finalize a correction, deletion, or addition to a credit file?
Q3.Under Section 21 of The Credit Information Companies (Regulation) Act, 2005., what happens to a request to update a record if the requested correction is tied to a pending dispute before an arbitrator?
Q4.Under Section 21 of The Credit Information Companies (Regulation) Act, 2005., what is required from a person applying for a credit facility who wants a copy of their credit information from the institution?