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CIBIL Masking – All you want to know to avoid being cheated

CIBIL Masking is nothing but an offer to defaulter to clear all the past dues along with penalties and interests. The past dues or outstanding loans are either written off or settled in the CIBIL report of a defaulter. If borrower accepts CIBIL Masking offer then the bank promises to remove Written-off or Settled Status from the CIBIL Database. To know more about these 2 terms, please check my post, CIBIL Score – 7 Jargon you should know to read CIBIL report.  Before we proceed, i would like to request the readers to understand your CIBIL report before taking any decision or action. The probability of cheating increases, if the borrower is not fully aware of the nitty gritty of CIBIL report.

In most of the cases, the recovery or credit improvement agencies lure the defaulter to pay the outstanding amount to increase the CIBIL Score. They misuse the term CIBIL Masking. It may or may not be possible in all the cases. Therefore, it is important to understand the details before making any decision. At first place, i never suggest readers to default and reach this stage. In few cases, the borrower is responsible for his low CIBIL Score.

As i mentioned that under CIBIL Masking, once the dues are cleared, the written-off or settled status is removed from the CIBIL report of the borrower for old credit histories. It’s a huge relief to the borrower but normally comes at a heavy price. The concept sounds good. Usually, CIBIL Masking has an immediate and substantial impact on your CIBIL Score depending on the type of account and fulfillment of commitment by the bank.

Now you must be wondering, Wow..great concept, where is the possibility of cheating in this case. You can be cheated if CIBIL Masking is promised by the agency/firm that does not have the authority to do so. To take the example of Ms. Neha. She is a regular reader of this blog. Her CIBIL Score was 645 and was in an urgent need of a loan. One of the credit improvement agency charged Rs 16,000 to improve the CIBIL Score. She was offered CIBIL Masking and this agency acted as intermediary. She was told to pay a heavy amount and she obliged as she was running out of time to close a home loan. Even after a couple of months, the score and status of loan account were same. When she approached the bank, she was told that her account was sold to some recovery agency. The amount is paid to recovery agency and not to the bank. Bank cannot help in CIBIL Masking.

In the example mentioned above, the intention of a defaulter is to clear the dues. It should be reciprocated by CIBIL Masking. She is being cheated because of false promise by the recovery agency that is not authorized for CIBIL Masking. Therefore, as a borrower, you should be careful while accepting any offer of CIBIL Masking. Let’s check out important points.

CIBIL Masking – All you want to know to avoid being cheated

1. Only Bank or original lender can help in CIBIL Masking:

As i mentioned earlier and in my other posts, only bank or the original lender is the authorized entity to make any changes in your CIBIL report. You should be beware of any promises from law firms, recovery agencies, credit improvement agencies, ARC etc. They cannot help in CIBIL Masking. Mostly these are independent agencies, commission agents or buy outstanding accounts at a heavy discount. For example, in the case of recovery agency they will buy an account with dues of Rs 50,000 at Rs 10,000 depending on the probability of recovery. Any recovery above Rs 10,000 is a profit for the agency. As a recovery agency, i can promise CIBIL Masking and will demand Rs 30,000. You should deal only with the bank or original lender.

2. Terms and Conditions on Bank’s Letter Head or through Email:

As i keep highlighting that oral commitments have NO LEGAL standing. The trust factor exists only in writing i.e. in white. If the interaction is over email then it should be with the responsible employee of the bank not less than the Nodal Office Team of the bank. Reason being, the bank should not backtrack from the commitment. An oral commitment of a bank manager has NO VALUE.

3. NOC does not guarantee CIBIL Masking:

It’s the biggest misconception that if you receive NOC then all is well. In most of the cases, there is a clause in NOC that clearly mentions that “CIBIL record for the defaulted account will remain the same as reported on the occurrence of default i.e. Write Off or Settled status will remain the same till the old dues plus accumulated interest on the same are paid.”

In one of the cases, my client received a legal notice from the bank. The law firm is outsourced and they promised NOC from the bank to my client. He paid the amount but his CIBIL Score didn’t improve. When he approached the bank, he was told that bank never promised to change the CIBIL status. The clause shared by me was mentioned in the bank NOC. The client felt cheated but that is how it works. When he approached me for the solution, i suggested him few points but nothing much can be done in such cases. It is always advisable to understand and discuss the case with a bank or hire a professional.

How to Apply for CIBIL Masking?

Let me clarify that there is no standard process. I suggest processes similar to the one i shared in this post to my clients. It basically highlights how to approach the bank for CIBIL Masking. The following process is a general process and may vary from case to case basis

1. You should approach the bank with a request to rectify your CIBIL Report. In your request, you should specifically mention that you are looking for CIBIL Making of the outstanding loan.

2. This request should be ideally placed with the Nodal Officer of the Bank or Nodal Office Desk. I don’t suggest to approach bank manager and other employees as they are normally clueless. They will waste your time.

3. For sure, the nodal office will revert to you with the details of the history of your account and outstanding amount along with calculation sheet. They also provide the date till which you can clear the balance outstanding.

4. Normally, the interest rate is demanded and penalties (if any) are waived off.

5. You can reply with your consent and agree to pay the amount demanded (if it is correct). You can demand the detailed terms and conditions of CIBIL Masking. Also, seek info within how many days, the bank will report to CIBIL from the date of payment. You can request them to share how the account will be reported to CIBIL after all the dues as demanded by the bank are cleared. Please note that details to be requested from the bank may vary from case to case basis. I only shared the general details i.e. common among most of the cases.

6. Once you receive detailed terms and conditions & you are satisfied with the same. You can pay the outstanding dues under CIBIL Masking arrangement.

7. Share the payment receipt with the concerned officer with whom you were interacting and request him to initiate the process of CIBIL Masking.

8. You can demand fresh No Dues Certificate and NOC. NOC should not mention clause as i shared in “NOC does not guarantee CIBIL Masking”

9. You can follow up with the bank and once you receive confirmation from the bank on CIBIL Masking, you can pull out your CIBIL report to check the same.

10. At the same time, you can also raise an online dispute with CIBIL. They will check with Bank whether to update the same or not. You should exercise this option only if there is a delay from the bank.

Caution: Please note that impact of CIBIL Masking cannot be quantified. For example, if you have three outstanding loans and you cleared one under CIBIL Masking then the impact will not be much. The impact on CIBIL Score may vary from case to case basis. The only guarantee is that it will positively impact CIBIL Score. In short, it is relative in nature.

Copyright © Nitin Bhatia. All Rights Reserved.

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SAURABH JAIN
SAURABH JAIN
8 years ago

Hi Nitin

Thanks for sharing this amazing article. Can you also share your input on below point.

Is there any source/ report from which we can get information about number of borrowing/ credit card facility availed by a borrower and name of lending institution ?

Is CIBIL report serve the above purpose..?

Regards
Saurabh Jain

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  SAURABH JAIN

CIBIL report will help you in this regard.

Naveen
Naveen
8 years ago

Hi Nitin,

I was defaulter to Axis CC later paid entire outstanding as per CC statement as we as legal notice (in which due amount disclosed) received from bank. At the time of payment the concern bank authority confirmed through mail that they issue NOC (Nil Outstanding certificate) once payment received. The payment process completed and they issued NOC but with a clause “CIBIL record for the defaulted account will remain the same as reported on the occurrence of default”. I am surprised at this as I was not aware nor informed by AXIS Bank earlier that my account will be marked as write off in CIBIL. It is only logical that any account for which they have issued NOC and statement confirming zero dues would be updated as a clear account in CIBIL records.

When I contact AXIS bank nodal officer they are asking me to pay 5,75,000 in the name of CIBIL masking. Now I approached with banking ombudsmen and waiting for the reply.

Now please suggest is it legally acceptable that bank need to collect this much huge amount to clear written-off status in CIBIL and what are the possibilities of approaching consumer court.

Thanks
Naveen

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  Naveen

Please check my following post
https://www.nitinbhatia.in/personal-finance/cibil-masking/

The decision in your case depends on multiple factors. As i have not checked all the documents therefore cannot comment on right course.

Vikash Shah
Vikash Shah
8 years ago

Hi Nitin,

I have come to your article after understanding from Axis bank telling me to pay CIBIL masking amount, if i want to remove my name from it. I have defaulted in their card in the year mid 2009 due to financial crisis. At that time my amount was 140,000.00 (when they write off the account) however checking with them recently they told me to pay around 800,000.00 and that will clear my CIBIL status and this is confirmed by Nodal officer of Axis bank in writing. The difference is huge between both amounts and i don’t know what to do? Kindly suggest.

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  Vikash Shah

You may decide on amount. As i shared in my post that any commitment from nodal officer will be obliged by the bank. You may follow steps as i shared in my post.

SKG
SKG
8 years ago
Reply to  Nitin Bhatia

Hi Nitin,

I have read many blogs of your’s but I landed on this page very late (today). Following your blogs I have already done settlement’s of some of my CC and loan account and few are Written off by bank as account are more than 7-8 years old. But today learned about greatness of cibil masking from your this blog/page. In 2013 I had approached SCB CC team for the settlement and got below reply from them. Can you kindly see the reply and advise if HSBC is referring to Masking CIBIL or settlement. As per my latest cibil report, thats are as below : High Credit = 1.7 Lacs , Current/overdue amount = 40K. My CC limit was 50K.

Reply from HSBC in 2013:

Part 1.

We understand that you wish to clear the outstanding on
your card account. As per our records, there is a total outstanding of INR
XX,XXX.XX reflecting on your card account XXXXXXXXXXXX.
Due to non payment, the card account has been invalidated in our records
with effect from on XX/XX/XXXX. Upon receipt of the payment, we would issue a “No due letter” to you and and will also update the CIBIL (The Credit Information Bureau India Limited) status of your above mentioned credit card with nil balance outstanding. This would improve your credit history in the bureau
records.

However, prior to this, we would require your fresh KYC documents to be
updated in our records. This is mandatory as per bank policy.

Part 2. Settlement offer.

I requested again for the settlement as initial offer was huge for me and got below reply.

Having checked with our Debt Management team, we wish to
inform you that a full and final settlement can be done on your credit card account for INR 15,652.85 in 1 installment. This settlement offer is subject to
approval.

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  SKG

It will be reported as Post (WO) Settled. The offer from HSBC is not for CIBIL Masking. Please check following post for more details
https://www.nitinbhatia.in/personal-finance/credit-score-cibil-report/

SKG
SKG
8 years ago
Reply to  Nitin Bhatia

Few days back when I checked with HSBC again and asked about how they will report to CIBIL after I pay earlier agreed amount (highlighted in Part 1 in thread above) . I got below reply:

We confirm that upon receiving above mentioned payment towards your card account will as complete payment received and your cibil will be updated as Blank status. We request you to liaise with cibil team in terms of cibil score improvement.

Kindly confirm, are they now referring to CIBIL Masking or settlement ?

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  SKG

I think they are referring that amount overdue will be reported as blank. As i have not checked all the details therefore it is advisable to clarify from HSBC Bank.

Mohammad Ziauddin
Mohammad Ziauddin
7 years ago
Reply to  Nitin Bhatia

Hi Nitin,

I have a similar issue, my Axis Bank credit card was written off in 2016 and my outstanding was 9000/- but the bank asked me to pay 17399/- in order to clear my total outstanding including all penalties and interest which I paid but they do not agree to give me No dues letter stating it’s not given by them only the cc statement stating Zero outstanding is enough. But when I pushed them hard for the letter they came back asking me to pay 92000/- to updated on CIBIL as masking amount. Now my outstanding was 9000/- I paid 17399/- then why do I need to pay 92000/- way beyond my outstanding. I have written to bank ombudsman waiting for revert.

Don’t know what to do.

Nitin Bhatia
Nitin Bhatia
7 years ago

It is unfortunate. In my opinion you should await reply from banking ombudsman. At the same time, you may demand breakup of Rs 92000 from the bank.

Naveen
Naveen
8 years ago
Reply to  Vikash Shah

Vikash, my case also similar with axis bank. Nodal officer sent me a detailed breakup for around 6,00,000 in the name CIBIL masking but my due was 75,000 at the time of defaulter. Now approached banking ombudsmen and awaiting reply. once I got reply from them I post the status.
Thanks
Naveen

Vikash Shah
Vikash Shah
8 years ago
Reply to  Naveen

Please Naveen….that will really help me to decide, what should i do with Axis bank.

Naveen
Naveen
8 years ago
Reply to  Vikash Shah

dear vikash
banking ombudsmen disposed my complaint by indicating some clauses according to their rules. now planning to approach RBI authorities for further course of action. u may drop ur # to contact u for ur case details.

Thanks
Naveen

Rohit Rawat
Rohit Rawat
7 years ago
Reply to  Naveen

Naveen Could you please mail me rrawat7288@gmail.com

Nitin Bhatia
Nitin Bhatia
8 years ago

Though i have not seen your report but in all probability it will be Post (WO) Settled

SKG
SKG
8 years ago
Reply to  Nitin Bhatia

Which one impacts adversely Settled or Post (WO) Settled ?

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  SKG

Both

Rohit Rawat
Rohit Rawat
7 years ago
Reply to  Nitin Bhatia

Nitin Bhatia sir can i have your mail id ?

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Rohit Rawat
Suresh
Suresh
8 years ago

Hi Nitin,

I got Sbi card way back in 2002 & Settled it in 2004. The problem was i did not get NOC & it is reported in Cibil with date Reported & Certified as 31-5-2011 with the Written off Status as Post (WO) Settled.

Now when i complain to SBI, they want me to pay Rs 5000 to clean up the cibil report which i dont want to pay.

However i plan to go for Home Transfer from LIC Housing to SBI in another 7 months now to take care of reducing floating rates & hence pls advise whether to pay to clear the settled entry in cibil to be removed.

Thanks,

Suresh

Nitin Bhatia
Nitin Bhatia
8 years ago
Reply to  Suresh

If SBI agree for CIBIL Masking as i explained in my post then you should go ahead.

Chidambaram Malayan
Chidambaram Malayan
7 years ago

hi.
i had got a two wheeler loan and defaulted on2007 for an amount of 28000 . as on date the amount has grown up as 1,03,000.i approached the bank they are offering for ots for 30,000 or full amount in emi for 12 months.but when i applying for two wheeler loan,the lender is asking for NOC only.which option can i go.
what will be reflected in my cibil report if i decide for an emi option.please suggest.

Nitin Bhatia
Nitin Bhatia
7 years ago

My apologies but your query is not clear to me.

Midhun Rajan
Midhun Rajan
7 years ago

Hi Sir,
I had a education loan in SBT and I settled it before one month. I was not aware about Cibil masking. My score is 630. Can I apply for Cibil masking?. One more dobut is there. Is Gold loan helps to increase cibil score?
Thanks in advance

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Midhun Rajan

Wait for 15-30 days and check how the bank has reported the settlement in your CIBIL report. Post that you may discuss CIBIL masking with the bank. Gold Loan cannot help to increase CIBIL score.

Midhun Rajan
Midhun Rajan
7 years ago
Reply to  Nitin Bhatia

Sir,
Today I checked my cibil report. It shows current balance as 0. In Default status it’s mentioned Suit filed and all other status are Nil including settlement amount.

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Midhun Rajan

It seems settlement is still not reported by the bank. I suggested to wait for 15-30 days i.e. account is normally updated in 45-60 days from settlement.

Nitesh Kumar Jalan
Nitesh Kumar Jalan
7 years ago

Hello Nitin,

Congratulations on OUTSET and Thank you so much for your fair opinion shared with CUSTOMERS suffering due to CIBIL Issue. I am writing this to have your expert opinion on following issues:-

1. Gold Loan Account opened on 11.03.2012 with HDFC Bank and was properly closed by paying all outstanding dues on 13.05.2013 but for 5 Months from Dec 2012- April 2013 Shown as STD payment Date reported and certified 31.05.2013 in CIBIL Record. What could be done about this Sir?

2. SBI Credit Card opened on 13.06.2007 closed on 04.07.2009 Date reported and Certified on 04.10.2015 showing Post (WO) Settled. Written Off Amount (Total) 36872.00, Written Off Amount (Principal) 24271.00. Settlement amount was 30000.00 i had paid and Higher Credit Sanctioned for the card shown as 72414.00. Is CIBIL Masking required for this Account? If yes then what should be the Amount i should accept to pay if at all offered by SBI?

Kindly Provide your Opinion on above 2 issues. The latest Score which i have as on yesterday is 825.

Nitin Bhatia
Nitin Bhatia
7 years ago

1. STD means standard. I don’t foresee any issue in reporting.
2. CIBIL Masking is required. The amount will decided by the bank after including applicable penalties and interest.

Nitesh Kumar Jalan
Nitesh Kumar Jalan
7 years ago
Reply to  Nitin Bhatia

Thank you so much Nitin Ji for your input. All The best again for your great job of Social Awareness.

Rajit Suri
Rajit Suri
7 years ago

Hi Nitin,
I wanted to know if i have settled personal loans as well as credit cards about 5 years back, will slowly by credit score improve as i now have just 2 credit cards whoose payments i am paying regularly

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Rajit Suri

It depends how the settled accounts are reported to CIBIL and current status.

Crystal Logic
Crystal Logic
7 years ago

Hi Nitin,

I recently checked my CIBIL and the score was 580. I have 2 credit cards, one from Kotak (since 2012 for which i have never defaulted a payment) and one from SBI card (since 2013 which was unpaid since Nov 2014) The last DPD entry is 190 on my SBI credit card account with a Written-Off status.

Now, I contacted SBI card few days ago to clear my outstanding i.e 117000 in total. They assured me that after making the payment, they will provide me a CIBIL clean up letter with NIL or Zero outstanding. To avoid any dispute in future, I took this on an mail. The mail clearly stated that it’s a CIBIL CLEAN UP offer that will close the credit card account and convert the WRITTEN OFF status to account with NIL or Zero Outstanding. This MAY improve my chances of purchasing any new loans in future. Is this true?

Furthermore, one of your DPD post suggested to reactivate the card account in order to flush out the latest entries. (upto 36 months) I tried this tactic with the bank (SBI) but it didn’t work. They told me that we can’t activate the account since it’s in default, but after your payment we can give you another credit card. I simply asked – WHY? and How a new card will help me? To this, they responded that after closing your account your CIBIL will increase to 650 (at least) A new card from SBI bank will reflect and ascertain a good relation in the past with the bank. The old card will or can be classified as a DISPUTED CARD. The new card can improve your score to 750 in 12 months, provided all payments are made on time.

Now the question is 1) should i go ahead with this or it’s a collection trap?
They have also broken down the entire payment of 1,17,000 in 3 easy EMI’s. (not on mail but have said that agent will come to collect and will give a receipt)
2) Should i pay in 3 EMI’s or in full? (I have the cash but don’t want to regret it after reading your DPD post)
3) Will this payment of 3 EMI’s will be recorded or updated with CIBIL in the DPD table?
4) At this stage, are there any other terms that i can negotiate (except the total amount) with the bank or take any other form of proof before writing them a cheque?
5) Will my score shoot up to 650 from 580?

Last but not the least is Cibil Masking required in this case? Should i ask for It.
Regards,
Abhishek

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Crystal Logic

You may request SBI for CIBIL Masking. NIL or Zero Outstanding is not a CIBIL masking. SBI is misleading you and you should insist on activation of existing card if it is not closed.
1. As i have not seen all the details therefore cannot comment. It cannot be termed as collection trap. As bank has right to recover their dues.
2. It does not matter. It seems bank is offering you settlement
3. No
4. You should ask for CIBIL Masking as i explained in my post.
5. I don’t think so

Crystal Logic
Crystal Logic
7 years ago
Reply to  Nitin Bhatia

Hi Nitin,

After talking to the Nodal Officer for the above mentioned issue. He denied Cibil masking.(rather ignored) The last payment made on this account was in Nov 2014, all they want me to do is pay the Rs. 1,16,961.16 in one go and they will update the Cibil Record.

The good news is they have responded to me on an email. I would really want you to help me out here, because i still feel that even after paying the entire amount, my Cibil Status Update will be compromised.(with either the status or the masking amount to clear the default) Below is the email thread with SBI.

Warm Greetings for the day!

This is in reference to your email dated 05/10/2016 and 07/10/2016.

We truly value you as our privileged customer and regret the inconvenience cause to you in the matter address to us.

Please find the below details as per your request.

Me- How much do i owe you? (In full) – SBI-Rs. 1, 16,961.16

Me-After paying the said amount what will happen to my SBI credit card account? – SBI- your SBI card account is already inactive for usage, however post we receive the above said amount, your SBI card account would stand with no outstanding and CIBIL would be updated. (Not a clear response, is no outstanding – closed?)

1) Me- How soon the payment will be updated under my CIBIL records? – SBI- CIBIL would be updated for every 45 days

2) Me- What will be the STATUS reported by you after i pay the above amount- Will it be CLOSED, PO (WRITTEN OFF) or SETTLED. – SBI- In CIBIL records it would be updated as no dues (Not a clear response, as per your blog there’s no such status, i can’t understand the hesitation to reveal the CLOSED status)

3) Me Can you break down the Final amount in 3 easy EMI’s and activate my card for usage? Is this possible? – SBI- Only if you wish to go for settlement amount and number of EMI will be fixed with to subject to approval also card cannot be activated.

4) Me- After paying Rs. 1, 16,961 will i owe you anything else? If YES can you before and tell me, how much the amount will be? if NO, can you give me in writing that i will get no further emails or calls regarding any outstanding – SBI- If we receive the above payment at the earliest, there would be no extra payment also NOC letter will be issued.

5) Me- When and how do i obtain a No Dues Certificate from you? – SBI -Post we receive the above payment and your SBI card account gets zeroised, NOC request will be raised and will be sent to your registered communication address (again timeline not mentioned)

6) Me- As mentioned in my previous mail about the Mumbai SBI team are they giving me the correct info? Will SBI card give me another card after i pay this in full? – SBI- Issuance of card is fully based on internal decision and our business policy (Nitin, this is the trap that i was referring to in our last conversation)

7) Me – They are offering 3 EMIS to pay Rs. 1,16,961 and will offer a CIBIL CLEARANCE and NO DUES OUTSTANDING LETTER – SBI- If it has been offered for EMI then your SBI card account in CIBIL will be closed as settlement.

Please note, we kindly request you to make the amount of Rs. 1, 16,961.16 at the earliest to update positive flag in CIBIL records.

For further queries, please do email.

Regards,
Saranya V,
Nodal desk – SBI card.

PS : Nitin, I appreciate and apologize for making this long and monotonous. But i just want to make the right decision and share as much info as i can with you and the readers, so that they can effectively tackle such situations in the right way. There’s no one except you who truly believes in the institution of ‘Help’.

1) Based on the above Q & A, SBI refused for activation of my card. What else can i do?
2) They are willing to update my CIBIL with ‘No Dues’ when i asked to Close the account. Is it the same? Or should i reply to the mail asking for a closure of the card post payment.
3) One of your blogs stated the NOC T&C (Cibil Status Reported Will Remain The Same) should i clarify this with the bank? Take it in writing not to put that clause on the letter. How should i convey this.
4) Post payment what documents should i take from the bank? (They are offering Cibil Clearance Letter, N)C and asking for my documents for the new card) The issuance of the card is not on mail.

Regards,
Abhishek

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Crystal Logic

1. It is banks decision. You can only negotiate. As i shared in my previous comment that you should insist on activation of existing card. I doubt you will be issued new credit card
2. It is not clear. It seems you are offered a settlement by the bank. Your Amount overdue in CIBIL will be NIL and credit card account will be closed with the status “Settled” or ” Post (WO) Settled” though i am not sure as i have not checked the details.
3. You may demand settlement letter and it will be mentioned in the same.
4. You will get payment receipts and NOC. I doubt bank will approve new credit card.

Crystal Logic
Crystal Logic
7 years ago
Reply to  Nitin Bhatia

Hi Nitin,

Appreciate your response. A fresh update, yesterday (14-10-201,) i visited the SBI Card office in Santacruz, Kalina at Windsor Building 6th Floor)

I had one of the manager discussing the same issue with me. He presented two documents in front of me.

One was a Cibil Clean-Up Offer: In this, it was clearly written that upon payment of the entire amount the ‘Written-Off’ status will be removed and updated. On further probing about status, he said it will be a (-) against all the entries in the report. This also had a Cibil Reference No on the top right-hand side.

The offer also gave me to pay the amount in 3 equated installments max by 31, December 2016. Thee manager confirmed that this is not a Settlement. As we are giving you this in writing that we will remove the written off status. Upon getting this info, i further made my mind to pay the final amount in one go by end of this month. (buying time to ensure i’m taking the right step)

The letters had the bank’s logo and official signatories of the manager. A soft copy was also promised on my email but post the payment handover along with the hard copy.

The second letter was a Card Reinstatement Letter: This stated that post verification of details we will be more than happy to provide you a fresh card, a fresh account. This was further confirmed by the Cibil Clean up officer who called me from the Vashi call center. The same officer who made a promise of instant Cibil Score change to 650 from 580.

After seeing those letterheads, with SBI’s watermark and manager’s signatories, i gave them a date and asked them to issue a fresh letter with a on-time payment on it. Assuming that this won’t go under settlement and will further speed up the Cibil update process. This entire arrangement didn’t look like settlement.

The letter clearly states that too. My card limit was 88k and i’m paying 1,1696K so the bank are recovering every penalty that i owed. Both the managers and the bank executive, clearly mentioned that you will be issued a New Card within 30 days after the payment.

Now that i have seen everything with my naked eye. Should i make the payment? it looks like legit, should i make a demand draft under my card no and issue it to them?

They said that we will hand over the hard copies on the spot as soon as the executive gets the demand draft.

PS : This is not the Nodal Office Desk but since i visited the SBI Card office, i don’t have any reason not to believe them.

Please advise.

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Crystal Logic

As i have not seen details therefore cannot suggest with 100% conviction. Normally, 15-20 clauses are mentioned in such letters. Therefore, you may go through all the terms and conditions for any catch.

Card Reinstatement seems doubtful as it will be subject to fresh verification and it may be rejected on the basis of CIBIL Score or past default. I am not concluding but it is subjective as bank is not offering unconditional Reinstatement.

Reg Cibil Score change to 650 from 580. Bank is misleading you. No one can guarantee the same. You ask SBI how they are calculating increase from 580 to 650 and request them to share the formula for the same.

Manu A Unni
Manu A Unni
7 years ago

Hi Nithin,
This is Manu. I wanted a clarification on my credit score. I have two credit card (HDFC & SBI). I had defaulted on SBI for 78,000(limit is 64,000) for 5 months due to financial crisis. Now in the month of September I had paid Rs.45,000 & now in October, my Total amount due is Rs.37,000 (Minimum is 2000). My Card is blocked & I had requested for Card activation to SBI. Nodal Officer replied to me saying, once I clear my dues, Card will be activated on approval.
Now my doubt on this is that :
1) Will my CIBIL score be improved, if I am paying minimum amount each month?
2) As per the reply from SBI nodal Officer,will they activate my Card after payment of Rs.37,000?
3) What will be the status in my CIBIL report after the full payment?
4) When can my CIBIL come to normal state after clearing full dues?
5) Do I have to take any NOC from Bank after clearing the dues?..

Request your valuable help in this regard…!!

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Manu A Unni

1. I don’t think so
2. I doubt. The bank replied to you that Card will be activated on approval. Normally in such cases, bank don’t activate existing card.
3. Prima facie “Settled”
4. It depends on overall credit report but this account will hurt your CIBIL Score.
5. Yes

Manu A Unni
Manu A Unni
7 years ago
Reply to  Nitin Bhatia

Hi Nithin,

Thank you for the revert..!!!
Please let me know, what I have to do in order to not get this status as “settled” in the CIBIL report.
Request you to help me in this regard.
Thanks,
Manu A Unni

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Manu A Unni

You may ask for CIBIL Masking.

vinayak S Kulkarni
vinayak S Kulkarni
7 years ago

I have settled Axis bank credit card on 30-05-2009 during that time outstanding amount was 15500/- and banker has issued a letter stating that recevied amount towards full and final settlement of the card. When i checked CIBIL it is showing negative impact in my CIBIL report. So I am not able to get loans properly. This settlement offer was given by the bank only and I never tried to make the short payment. During that time I was facing financial crises so it was got delayed. I have approced banks for clearing of CIBIL mask they are demading INR 2,25,700/- to clear the maksing. Please help me in this regard.

Nitin Bhatia
Nitin Bhatia
7 years ago

Normally the banks fail to inform the customer the impact of settlement on credit score. Their sole objective is just to recover to principal amount as the borrower may not opt to clear 100% dues.

You may opt for CIBIL Masking. Please check following link
https://www.nitinbhatia.in/improve-credit-score/

Das
Das
7 years ago

Hi Mr. Bhatia,

My current Cibil Score is 613, i am a salaried employee with earning of 50k per month.
i had a lot of dues and pending payments last year. all of which i have cleared and settled with the banks, due to financial constraints i had to delay the payments due to which my score was hit really bad. but now i am in a position to afford a loan and repay properly.

currently i have no outstanding loans as such, i need assistance in raising the cibil score.
if there is an option do assist. i can be reached on prdas86@gmail.com

Nitin Bhatia
Nitin Bhatia
7 years ago
Reply to  Das

The settlement of dues will not help to improve credit score. You may opt for Credit Score Masking, please check following link for more details
https://www.nitinbhatia.in/improve-credit-score/

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