Easy Office

Bad CIBIL or credit score? Know how to handle blackmailing by banks

CA Pradeep Kumar Rajput , Last updated: 27 November 2019  

This is in continuation of the previous article "CIBIL or Credit Score - A Blackmailing Tool for the Bank and Financial Institutions"

Bad CIBIL or credit score  Know how to handle blackmailing by banks

Normally the people don't care when the exploitation starts as everyone expects that the problem can be resolved with the few phone calls and emails. Normally things get irritating and the consumer starts suffering from each passing days if the consumer does not get any relief from the bank and lastly, consumers end up with no documentary evidence of efforts made and lots of wasted time.

By the time the consumer realize all this his credit score completely gets blown away and once the same happens it' s not possible to access the credit system of the country.

In all the cases it's the consumer who suffers the most and he has to choose among the two options which are:

  1. Pay the amount to the bank and pretend as nothing happens; or
  2. Decide to fight for his money and exploitation and drag the bank or financial institution to the court and the other forums.

Once the consumer decides to go for the second option. It is advisable to follow the below steps from the beginning:


Keep the proper documentation of the facts and communication that you have made with the bank / financial institution.

Also, serve with the bank a proper notice of your future action if the bank does not resolve the issue with the specified timeline.


Raise a dispute with the credit rating agency. There are different credit rating agencies for individuals like CIBIL, Equifax, Experian and CRIF. Hence, the dispute has to be raised with each of them.

The credit rating agencies can' t do much on their own. Instead of that they co-ordinate with the bank and resolve the issue together with the bank.


The complaint can be filed against the bank with a different forum like consumer court (District Forum), Banking Ombudsman and RBI.

As the penalties in case of RBI and CIC regulations are more stringent it' s advisable to file the complaint with the RBI at their common portal. With all the necessary facts of your case along with the supporting documents and communication made with the bank.

Normally, due to the volume and other issues, the above process moves very slowly. Below are the few steps to make the complainant stand more effective:

  1. Make the written communication with the bank/financial institution as much as possible.
  2. Keep the record of telephone call and reminders made by the bank to you.
  3. Try to make a complaint in the group for that use Twitter/Facebook and other social media to connect with the similar kind of person facing the dispute with the bank.
  4. Intimate the MCA about the fraudulent/unethical activity by the bank or financial institution.
  5. File a complaint with RBI in group
  6. File a case under the consumer protection act in the group.
  7. As the government process works very slowly. File the RTI application to know the status of your case, this will also to increase the process flow.
  8. Claim very high punitive damage from the bank and compel the bank to spend very high amount on the consumer welfare activities. As the bank charge a very high penal interest and late payment charge.
  9. Report the wrong practice of the bank to the statutory auditor.
  10. If the bank/financial institution is listed then file the complaint with the stock exchange and the SEBI in the group along with the adverse future on the bank and the financial institution.

Piece of advice:

If the consumer decides to fight for his money. He has to take the decision by keeping in mind that this process is going to take lots of time, he may not be able to avail any fresh loan and credit card from the bank due to bad credit score, his financials conditions and other factors.

Join CCI Pro

Published by

CA Pradeep Kumar Rajput
Category Others   Report

3 Likes   33671 Views


Related Articles