Mr. Mahesh had previously availed a loan from Bajaj Finance Limited. The account was settled by the client in 2023, and the agreed settlement amount was duly paid. However, despite the settlement, the account was later assigned/sold to Kotak Mahindra Bank, where it was incorrectly reported in the credit records as “Written Off” along with overdue outstanding amounts continuing to reflect.
Due to this incorrect reporting, Mr. Mahesh faced a severe negative impact on his credit profile, which affected his financial credibility and loan eligibility.
The matter was initially escalated to the Nodal Officer of Bajaj Finance Limited. However, the response received stated that the client was still required to make additional payments, despite the account already being settled earlier.
Thereafter, Kenstone Capital escalated the matter further before the Reserve Bank of India (RBI) and the Prime Minister’s Office (PMO) through formal grievance proceedings. Upon detailed review and continuous follow-up, it was established that the incorrect reporting had occurred due to an error from the lender’s side.
As part of the resolution:
Bajaj Finance Limited provided compensation of ₹5,000 to Mr. Mahesh for the inconvenience and incorrect reporting.
The negative reporting associated with the Kotak Mahindra Bank account was successfully suppressed/rectified from the credit records.
The client’s credit profile improved significantly after the correction.
Following the successful rectification of his credit report, Mr. Mahesh was able to secure a fresh loan approval of ₹20 Lakhs from ICICI Bank, demonstrating the successful restoration of his creditworthiness and financial eligibility.
This case highlights the importance of proper escalation, regulatory intervention, and accurate credit reporting in safeguarding consumer financial rights.
Mahesh was extremely happy with the resolution and shared her experience through the following review: