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Credit Repair refers to the process of rectifying discrepancies in one's credit report to improve the credit score, and thereby, the ability to obtain loans and credit cards. In Bengaluru, a buzzing technological and entrepreneurial hub with increasing demand for credit facilities, the legalities around credit repair laws revolve around one's ability to challenge inaccurate or outdated information in the credit report. While the Reserve Bank of India (RBI) oversees the credit structure nationwide, Credit Information Companies Regulation Act, 2005 is the primary governing law related to credit repairs.
People may need legal help in Credit Repair in cases of fraudulent credit card activities, identity theft, excessive or erroneous charges by banks, outdated or inaccurate information in credit report, and loan denials due to poor credit. A legal professional can help navigate these situations, communicate with banks or credit report agencies, appeal against wrongful information, and ensure legal rights are protected.
The Credit Information Companies Regulation Act, 2005, stipulates that every person is entitled to a copy of their credit report and has the right to dispute and correct incorrect data. Under Section 21 of the Act, a credit information company has to investigate disputed points and rectify or delete unverifiable data within 30 days. Additionally, the RBI's Fair Practices Code for Lenders outlines the nondiscriminatory practices to be followed by lenders, which can also be invoked as needed.
A score above 750 is generally considered good and can increase the chances of loan or credit card approval.
Timely repayment of EMIs and credit card dues, maintaining a low credit utilization ratio, and avoiding multiple loan or credit card inquiries at once can help improve your credit score.
Yes, by adopting disciplined credit habits and timely disputing any inaccuracies that appear in your credit reports, you can work towards improving your credit score.
Contact your bank immediately and inform them about the identity theft. Lodge a complaint with the local police and take legal advice to dispute fraudulent transactions or accounts opened in your name.
Negative information like delayed or missed payments, loans settlements, or bankruptcy generally stay on a credit report for seven years from the date of the delinquency.
The Credit Information Bureau (India) Limited (CIBIL) and Experian are some organizations providing credit reports and other relevant services. The RBI's ombudsman scheme provides a complaint redressal mechanism for financial disputes, which could also be useful.
If you perceive that your credit score needs to be repaired and legal assistance is required, seek help from a legal professional with expertise in banking and finance laws. Legal advice can be beneficial in understanding the nuances of the law, the steps involved in credit correction, and to ensure compliance with all legal procedures.
