Money Clarity

Credit report errors: how to dispute, and what you are owed

If your credit report is wrong, the bureau has 30 calendar days from your complaint to fix it. If it takes longer, you are entitled to Rs 100 for every additional day, shared between the bureau and the lender that reported the error. This is an RBI direction, not a goodwill gesture, and very few people claim it.

The problem: errors are common and quietly expensive

A credit report is assembled from data sent by dozens of institutions, twice a month, with no one checking it against reality until you do. The errors that appear are boringly consistent.

A loan you closed years ago still showing as open, with an outstanding balance
A settled account reported as written off, which is a far heavier mark
Someone else’s account attached to your file through a name or PAN mismatch
A card you never activated showing a limit and a balance
Enquiries from lenders you never applied to

How much an uncorrected error costs

This is not a paperwork nuisance. It changes the price of every credit product you are offered until it is fixed.

A written-off marker can move you from an approvable profile to an automatic rejection at most banks
On a Rs 10 lakh loan, a two-percentage-point rate difference is roughly Rs 20,000 a year
Rejections themselves leave hard enquiries, so a single error can generate a cluster of further damage
The error will not correct itself - it is re-reported every fortnight until someone disputes it

How to dispute it, in the order that works

Raise it with both parties. Bureaus can only correct what the lender confirms, so going to the lender in parallel shortens the process considerably.

Pull the full report from the bureau showing the error, and note the account number and reported status exactly
Raise the dispute on that bureau’s online dispute portal - keep the reference number
In parallel, write to the lender’s nodal or grievance officer with the same detail, since the lender is the source of the data
Attach evidence: the loan closure or no-dues certificate, the settlement letter, or the statement showing a zero balance
Note the date. The 30-day clock starts from your complaint, not from when anyone replies
If it is not resolved in 30 calendar days, claim Rs 100 per day of delay in writing to both the bureau and the lender
If they still do not act, escalate to the RBI Ombudsman under the Reserve Bank - Integrated Ombudsman Scheme

What to expect, honestly

Most disputes are resolved, and a minority need escalation. Knowing which is which saves you weeks.

A clean error with documentation - a closed loan showing open - is usually fixed inside the 30 days
A disputed settlement or a genuine default reported accurately will not be removed, and no agency can remove it for you
A mixed-file error, where someone else’s account is attached to yours, takes longest and is worth escalating early
Fix the error on every bureau it appears on - correcting CIBIL does nothing for Equifax

Common questions

How long does a credit bureau have to fix an error in India?

Thirty calendar days from the date of your complaint, under RBI’s direction on credit information reporting. Beyond that you are entitled to compensation of Rs 100 for each day of delay, shared between the credit information company and the lender that reported the data.

How do I get a closed loan removed from my credit report?

Raise a dispute with the bureau showing it, attaching the closure or no-dues certificate, and write to the lender’s grievance officer in parallel — the bureau can only correct what the lender confirms. Repeat for each bureau where the error appears, since correcting one does not correct the others.

Can anyone remove a genuine default from my credit report?

No. Accurate negative information stays for the prescribed period and no agency, consultant or app can remove it. Anyone offering to do so for a fee is selling you something that does not exist. What you can do is settle or repay it, since an ageing, closed delinquency weighs less over time.

Pull all four reports once a year and read the account list. The dispute process works, the 30-day clock is real, and the Rs 100 a day exists precisely because bureaus were slow. Ask for it in writing and the timeline tends to improve.

Written by Danish Mirza, founder of Unyfy. 14 years in Indian lending and collections at Standard Chartered, Barclays, Ola Money and Uni Cards.
Last reviewed 2026-09-09.