I have a clean credit record since last 10 years. I had a home loan which was paid off in 2006/7. I also maintain a HDFC credit card since last 10 + years, which was always paid and serviced on time – there were a few exceptions – when i was travelling or was abroad or a few times when the payments got credited about 2-3 after the due date – however i have always diligently paid all my dues . 

The only exception to the above was the HSBC credit card, which i owned around in 2005, and which  i  lost around 2006; so i immediately called the customer care and closed the card and paid the balance – i think it was less than Rs. 1000. ( i was living in New Delhi at that time- now i live in Bangalore)

To my shock, HSBC started calling me in 2011/ 12 for payment over due. I was told that i have an outstanding of about Rs. 10,000 and the accrued interest has amounted to Rs. 1.5 lacs. The collection agents threatened me and harrased me for over a year for 1.5 lacs amount. 

I suddenly stopped getting calls about 6 months ago and then i realized that this has affected my CIBIL Score adversely. 

Now my CIBIL score has dropped to 598 !!! And that too right at the time when i am looking for a Home Loan and already booked a property

I feel very frustrated now! i think its very unfair. 

Why should i pay 1.5 lacs to get my CIBIL Score right – and why should i pay HSBC when i dont owe them any money.

Is there any solution to my problem, Any suggestions or help would be very welcome

Pavan