Urgent Query on ‘Settled’ Status in CIBIL Report

POSTED BY Majestic Eagle ON February 6, 2013 1:15 pm COMMENTS (10)

My cibil rating as on 30-1-2013 is 641 : and i want to avail home loan before March 2013 : I seek your help/guidance on what best can i do to improve the score or to explain the financial institution so that i can get the loan approved.

 

The reason for my low credit rating is my brother :

 

(1) My brother added my name as co-applicant for his car loan for eligibility purpose only but the emi’s are paid by him even the car is in his name n he is only using the car. But due to his default in paying emi’s its affecting my creditability. The loan was availed in 2008 and it was settled in 2012.

  

(2) He has forged my signature n fraudulently added my name as guarantor in housing loan taken in 2008. Even in this loan he has defaulted n after lots of struggle with the bank although the bank not ready to accept this as fraud i have filed FIR for this but somehow the bank has issued me letter stating that they have removed my name as guarantor from the housing loan in july 2012 but my name still appears as guarantor in cibil report dated Jan-2013 of which i have raised dispute with CIBIL.

 

 

Other than the above incidents my whole credit history is clean with no defaults in credit cards and timely closure of my previous loans which i have availed in my name for self.

 

 

 

Questions:

(1) What will be the effect of settled status on my availing of home loan ?

  

(2) I am informed by one credit-rating rectification agency that settled status will be for 7years and untill that time i cant avail any unsecured loans like personal loan ? Is this true ? What the solution for this ?

 

(3) Although, i have 5 credit cards with healthy payment history, if i apply for new credit card my application will be rejected and it will again lead to negative marking in my credit score ?

 

Please help me with your suggestions on what should i do in such unfortunate circumstances.

Many thanks for your immediate and positive response 

Regards,

Saene

 

10 replies on this article “Urgent Query on ‘Settled’ Status in CIBIL Report”

  1. Dear Majestic, I can understand your pain & helpness & more than that the anger that your own brother had conned & forged your signature. If ICICI, is not helping out, don’t worry, try to collect whatever letters or proffes it’s offering to you to show your as on date situation.

    At the same time, please wait for dispute resolution from CIBIL, please wait for a month as it’s a procedural issue & ‘ll take time.

    An alternate way is to file a consumer court case against ICICI. I should say a normal police case but it ‘ll take time & ‘ll involve your own family at cross heads, that’s why I’m asking you to use consumer court route.

    thanks

    Ashal

  2. Majestic Eagle says:

    Thank you All for your valuable response but it seems noone is getting my query correctly :

    Ashal : I have spoken to ICICI Bank regarding the settled car loan but they isnt ready to remove my name from the defaulted loan. Plz suggest any other solution, if any.

    CIBIL : I have raised the dispute resolution in the first week of Feb 2013 itself but have received no information till date regarding removal of my name as guarantor.

    Credexpert and Sunny Pillai : Please try to understand that i have given no guarantee for any housing loan but its a forced liability created by forgery which the bank is not ready to accept despite all the proofs.

  3. Sunny Pillai says:

    Dear Majestic Eagle,

    I think the best way moving forward would be to apply for a home loan with one of the banks you already hold a credit card with. You mentioned that you have 2 cards active and so you can apply to either one and check since they already have a good idea about your payment history. To be on a safer side, keep all the documents ready with you that you got from the banks where you were a guarantor. Alternately, why don’t you look at an under-construction project. This will give you time to rebuild your credit score at the same time it won’t hamper your home loan. Lastly, I would like to tell you, big banks won’t even bother to listen to your side of the story, why don’t you try some small players of HFL e.g. India Bulls, Citi Financial services or Bajaj FinServ. The rate of interest would be high but still your loan could get through. You can always shift your home loan after a period of 12-18 months thus proving that you are capable of repaying what you have borrowed.

    All the best.

  4. Credexpert says:

    Dear Majestic eagle,

    The settled status will affect your score. You can approach the lender to pay the outstanding against this settled account provided they are ready to remove the settled remark from your report. As you are a co-applicant to the auto loan, you are also liable to make the payment.

    About the loan that you guaranteed, if you have the written confirmation from the bank stating that they have removed your “guarantor” ownership then, raise a dispute with the bureau with these supporting.

    Post the removal of the settled and guarantor remark, your score will improve. However the DPD that will still be reflecting on your report would affect your score.

    Regards,
    Credexpert

  5. CIBIL says:

    For resolution of your queries, kindly write to us online by visiting the following url on our website: http://www.cibil.com/contact-us.

    If any information on your CIR is inaccurate or needs to be updated, we shall be pleased to help you with the Dispute Resolution. The easiest way to initiate a dispute request is by submitting a duly completed On-Line Dispute Form available on our website: http://www.cibil.com/consumer-dispute-resolution.

    We would further like to advise you not to divulge personal / financial information on public forums

  6. Dear Majestic Eagle, please arrange a No dues Certificate from that Home loan bank where your brother messed you up. So with the Car loan bank.

    Apply for your home loan & from your own side, declare your CIBIl status & the NDCs from banks. the declaration from your own ‘ll have a positive impact. As your CIBIL score is poor, you may not get the desired amount of loan. Alternatively, bank may ask to provide a Guarantor against you. In case your wife is also working, you may add her as co-aaplicant.

    When you are already holding 5CCs & out of which using only 2, why do you want to apply for more CCs?

    thanks

    Ashal

    1. Majestic Eagle says:

      Thank you Ashal for your response.

      (1) Home Loan – Bank have provided me only a declaration on their letterhead stating ‘My name has been removed as Guarantor from Housing Loan A/c No. …….. dtd 28th July 2012’ Other than this i have no other document nor account statement. Is guarantor eligible to ask for an account statement ?

      (2) Car Loan – I have spoken to the mgr and he told me that since i am a co-applicant i have no say in the loan so wont be getting any letter from the bank addressed to me but can get a photocopy of the settlement letter addressed to the first applicant.

      (3) I have been told by a credit rectification agency that with this score + ‘settled’ status in report i will never be able to get new credit card nor personal loan …… is this true ? whats the solution ?

      Thanks in advance for your valuable response.

      Regards,
      Saene

      1. Dear Majestic Eagle, If you want to have a CC, you may have a secured one i.e. a CC issued against a FD. That home loan letter is OK.

        Car Loan, please escalate the matter with the bank to get your name cleared from that defaulted loan.

        Thanks

        Ashal

  7. Majestic Eagle says:

    Hi Manish,

    Many thanks for your response, but still my questions remains unanswered.

    I, very well understand that banks have nothing to do with my personal things and hence my approach with them is very much within banking framework :

    For e.g. : the said bank has failed in their KYC on guarantor, hence this incident has happened.

    And as regards paying my personal dues, as mentioned earlier i have 5 active credit cards with highest credit limit of 1.80lacs on single card and out of these 5 i only use 2 cards and the payment history is very healthy with no negative markings.

    Hence if have any information, please help me with the answers to my questions.

  8. Sadly you are in a tough situation , what happened with you and your brother is of no concern to companies and their business policies, they will not change their way of looking at things for your personal reasons.

    The simple point is you were co-applicant and guarantor and the loan was DEFAULTED . For a long time your brother loan was defaulted and that messed up his and yours DPD section , which you can understand by reading this article – https://www.jagoinvestor.com/2013/01/days-past-due-dpd-meaning-cibil-report.html

    Now as you are saying that “guarantor” thing is removed from the home loan now, its a good thing for you, but your past will have some effect on your overall credit score and report.

    You can now do

    1. Pay your personal dues on time.
    2. Try to pursue the matter again with bank and check if they can remove the wrong DPD numbers, because you were never a valid guarantor.

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