Closed pay-later loan still showing open on the credit report

NBFC · Credit report · credit-report

Complaint no.: N202122016021875
Against: Capfloat Financial Services
Filed: 16 Mar 2022
Closed: 1 Apr 2022
Time taken: 16 days
Scheme: RB-IOS 2021
Closure clause: 14(9)(a)/(b) r/w 3(1)(h)
Did it help?: Helped
Compensation: None

What happened

A pay-later credit line had been closed in May 2021. It was co-lent: the NBFC funded part and a partner bank funded the rest, and each reported its own share to the credit bureau. Ten months after closure, the partner bank's share was still showing as an open loan on my credit report.

What I asked the Ombudsman for

Get the co-lender to report the loan as closed, and confirm it.

What the entity said

The NBFC said its own reporting was correct, escalated the matter to the co-lending bank, and later produced a screenshot from that bank showing the bureau record had been updated to closed.

What the Ombudsman decided

The Ombudsman found the explanation satisfactory and closed the complaint as resolved through facilitation.

Helped

Did the Ombudsman help?

Yes. Ten months of nothing from the lender, sixteen days through the Ombudsman.

What I took from it

With co-lent loans, two lenders report to the bureau. Complain against the entity you signed up with and let it chase the partner. Ask for proof that the bureau record was actually updated.

Summarised from the RBI closure letter and my own correspondence. Names of individuals, account numbers and reference numbers other than the complaint number have been removed.