CIBIL Score Updation Borrower's Statutory Right; Credit Information Companies Bound To Consider Objections : Kerala High Court
Live LawThe Kerala High Court has held that updation of CIBIL score is a borrower's statutory right and therefore, credit rating agencies are legally bound to consider objections against the rating given to a debtor.A single bench of Justice N Nagaresh made this significant pronouncement in the case Sujith Prasad v The Reserve Bank of India and others.The Court noted that credit rating agencies. The Kerala High Court has held that updation of CIBIL score is a borrower's statutory right and therefore, credit rating agencies are legally bound to consider objections against the rating given to a debtor. Since credit ratings have civil consequences, impacting the financial credibility of a borrower, the credit information companies must consider the objections raised by borrowers. "In view of the fact that credit score given by the credit information companies like the 3rd respondent can have serious adverse civil consequences on individuals, the 3rd respondent is bound to ascertain the true state of affairs with its member-Banks/financial institutions, whenever any anomaly is pointed out by individuals.