A CIBIL report is a crucial document that reflects an individual's credit history and financial behaviour. It plays a significant role in determining creditworthiness and eligibility for loans or credit cards. However, the remarks Written Off and Account Sold in CIBIL can severely impact one's credit score and financial reputation. Understanding these terms and the steps to address them is essential for anyone aiming to improve their credit profile.
Understanding Written Off and Account Sold in CIBIL:
The term Written Off and Account Sold is reported in CIBIL, when a lender concludes that the borrower is unlikely to repay the outstanding loan amount for a very long time and sells that credit facility to any Asset Reconstruction Company (ARC).
The
lender writes off the amount as a loss in their account books and sells it to
an interested ARC or entity. This often occurs when the lender decides to
recover the debt through a third party rather than pursuing the borrower
directly.
1. Contact the
Lender: The first step is to reach out to the primary lender and to convince
them to remove the status from your CIBIL report to initiate the process of
status removal.
2. Raise a
Dispute in CIBIL: Another step to is to submit dispute against that status, as
the disputed status of your CIBIL report will be forwarded to the primary
lender to make any kind of changes.
3. Monitor the
Report: Regularly checking the CIBIL report ensures that the changes have been
implemented or not.
But due to latest
guidelines implemented by RBI. A Financial institution can report Written Off and
Account Sold in CIBIL, cannot be removed from the credit facility of an
individual’s CIBIL report.
Conclusion
The Written Off
and Account Sold in CIBIL can be daunting, as it is irreversible. But individuals
can rebuild their financial credibility by maintaining a disciplined approach
to financial management and timely repayments are the key to avoid such
situations in future.
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