Clipped from: https://www.financialexpress.com/money/keep-your-financial-borrowings-records-updated-loan-cleared-but-status-unpaid-3363407/
It’s crucial to ensure that your lender acknowledges the payment and updates the records accordingly.
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Fully repaying your loan isn’t the final step to financial freedom. It’s crucial to ensure that your lender acknowledges the payment and updates the records accordingly. Occasionally, even after a loan, especially a personal loan, has been paid off, lenders might ask for the EMI payment. To pre-empt such occurrences, proactive vigilance and due diligence are recommended.
Should you encounter such a situation, swift action is imperative. Rectifying discrepancies promptly is crucial to prevent potential repercussions. To navigate this challenging scenario, here are steps to address this issue effectively.
Collect documentation
Without any delay, start gathering every piece of documentation related to the loan. This includes receipts, transaction records, bank statements, and any correspondence exchanged during and after loan repayment. Comprehensive documentation serves as the cornerstone for substantiating your claim of having cleared the loan.
Initiating communication
Directly contact the lending institution, presenting the collected evidence of payment. Request the lender to rectify their records to accurately reflect the loan’s paid status.
Documenting written communication
Following any verbal communication, promptly send a follow-up email or letter summarising the discussion. Having a written record of your interaction can be invaluable, serving as a reference point for further proceedings.
Credit bureau dispute resolution
Since an incorrect loan status will affect your credit profile, raise a dispute with the respective credit bureau. Provide evidence of payment and request a thorough investigation to rectify the reported discrepancy.
Escalate to consumer protection agencies
Should the lender fail to rectify the issue, consider escalating the matter to higher authorities within the institution or grievance team. Seek guidance from consumer protection agencies or financial ombudsman, who specialise in addressing such disputes. These entities often offer insights to resolve grievances.
Legal recourse
If all other avenues prove fruitless, seek legal counsel. Consulting with a lawyer specialising in consumer rights or financial matters can provide clarity on the recourse available to you. However, you must keep all your documents and payment details handy to help your case.
Adhil Shetty, CEO, Bankbazaar.com, says, “The likelihood of your paid loan erroneously appearing as unpaid in the lender’s records is minimal. However, in such an occurrence, your transaction history serves as concrete evidence to validate your payment.”
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