How to remove "written off" status from the CIBIL report ?

 

Suppose you have applied for a loan from PSU or a Private bank, and suddenly you get to know that your loan application has been rejected. after talking to the bank manager, you find out that there is a written-off status in your CIBIL.

Written-off status is a very bad status in your CIBIL report. You will face tough challenges in getting approved for any loan. Most of the reputed banks and financial sector will just cancel your request.

Myself Ramesh Naskar I have been working for years as a CIBIL repairer. I have many clients who came to me with this written-off issue.  

So today I am going to tell you the process and methods that will help you to remove the written-off status from your CIBIL. And then you will easily get a loan.

Now the first question is why do we have written off status in our CIBIL report?

If you don’t pay your loan money then it will be marked as written off in future. But just because you didn’t pay your loan payment it will not show you written off. Banks and every financial institute have processes that they follow.

 Now the process is if the customer is failing to pay off his/her emails then, the bank is going to press charges like bouncing charges, and overdue charges and the loan amount reaches a high point. 

Bank can’t continue adding charges to this account. this account is considered an asset. If the amount can not be collected back then it is a loss account for the bank. Bank will then close the account in their books by making it a written-off account.

After the bank has considered the loan account as Another reason for loss or written off, then it will be seen as written off in your CIBIL.

 Other reasons for showing written off is when some other client’s account details are wrongly updated in your account. this is called a data mixing error.

If you have taken some loan from any PSU bank and then made a settlement for that account. then in that case few banks show written off in your CIBIL status. In this case, it is possible that the current balance and overdue are zero. Even the account is seen closed. But still showing written-off status.

Private banks prefer to do settlement after written off and hence the status is shown as settlement or PO written off the PSU settlement.

In my career, I have seen many cases when PSU bank never removed the written-of status even after the settlement is done.

 

Now let’s go back to the question of how to remove written off from the CIBIL report.

1)    Data mixing: if the written-off is seen in your CIBIL because of a data mixing error. Then you can simply raise a dispute in CIBIL and ask them to remove it. 

     Inform them about the account does not belong to you. They will remove it within 45 days after the dispute is raised.

2)    Fail payment: if you have taken some loan and because of your financial problem you couldn’t pay it off. 

     Then it will automatically get to the point of being written off. The best solution, in this case, is that you have to pay all the money and then the written-off will be removed by their end. The important thing you need to know.

If you have a written-off account many years ago example 5 years ago. You don’t have to pay only the amount that was written off. The bank won’t put charges and penalties for 5 years.

Don’t compromise your written-off amount, because it will then show as PO written settled.

 This will give a bad effect on your CIBIL report. You won’t be able to take a loan in near future.

3)    Asset reconstruction company: sometimes when you have taken a loan from a bank or any credit institution long back ago. You couldn’t pay off the loan at the time and it was written off from the bank.   

     Bank has the authority to sell that account to some asset reconstruction company. Then in the CIBIL, it will show some other companies’ names like Kotak bank, and phonics.

This type of company buys off the dead asset account and then collects the money. in this case the amount gets more than written off status.

I have a  customer who had taken a consumer loan from Bajaj finance. He paid the last few Emi in cash to a collection agent. The collection agent took the money and gave the customer the receipt. my customer made a wrong move which was he didn’t collect NCO from Bajaj.

After 5 years when the customer checked his CIBIL report, he was shocked to find that there was a loan account with Bajaj finance as a consumer loan with 83000 overdue amounts.

When he came to me, I told him about this loan and its actual written-off status is 3000. He told he has already paid that consumer loan amount long back and he also talked about his last 4 Emi paid in cash.

After this discussion, I directly went to the Kotak bank ARC department which asked me to provide the statement for this account. The recovery manager gave me the Bajaj finance report, which was huge in a number of pages. 

After checking it I found out that Bajaj has charged overdue 2 or 3 times per month. I asked question that is there any new rule to charge overdue 2 to 3 times for a single month. 

I informed him about the payment made in cash by the customer and showed him the payment receipt.

Kotak bank manager told me that as the customer has paid his dues, he doesn’t need to pay much amount now, just pay 5000. His loan account will be closed.

 In cases like this manager ask the customer to pay half of the amount of 83000. And customers do pay them because they fear if they don’t pay then they won’t be able to take a loan in future. 

 The written-off status is 3000 any amount more you pay them it’s your loss.

You paid off the PSU bank loan amount still the status shown is written off. If you don’t clear the written-off status then you won’t be able to get a loan from any bank or financial institution.

To remove this status, you have to pay off the written-off amount. Contact the bank to pay your deficit amount and then don’t forget to take NCO and payment receipt.

After this mail bank’s customer service and CIBIL about the payment made by you and get the written-off status removed.

Read More:

1. How to raise a dispute in the CIBIL report 

2. How to write a complaint in CIBIL 

3. Increase CIBIL score from 550 to 750+ | CIBIL score calculation method