Forum verdict: Bank to pay Rs 5 lakh for publishing name in defaulter list wrongly

Thiruvananthapuram: The Kerala State Consumer Disputes Redressal Commission has directed a nationalised bank to pay Rs 5 lakh compensation for erroneously publishing a man’s name on defaulters’ list in spite of him closing the bank loan. His name was on the list given to Credit Information Bureau (India) Limited which maintains the credit record and scores. As per the complainant S. Reghukumar, a lawyer, he had taken a loan from Sasthamangalam branch of Canara Bank in 2002 to purchase a car.

The loan was closed in 2008, and the endorsement on the certificate of registration cancelled. He again took another vehicle loan from the Vijaya Bank in December 2010 and closed on December 31, 2015. To his shock, on December 8, 2015, Vijaya Bank manager informed him that he was a defaulter of loan availed from Canara Bank as per the consumer credit information report of CIBIL.

A printout of CIBIL website screenshot showed he defaulted in paying Rs 71,463 in spite of his loan being closed. With this, he moved consumer dispute redressal commission claiming a compensation of Rs 25 lakh for deficiency in service. The bank officials contended that on receiving the complaint, steps were taken to cancel the hypothecation and remove his name from the list.