Constable Wins Rs 75,000 After Stranger’s 2 Loan Defaults Drag CIBIL Score To 627

A routine retail purchase turned into a credit report fight after 2 disputed loan accounts blocked a constable’s personal loan and damaged his borrowing record.

Key Highlights
 

• A police constable won Rs 75,000 after 2 disputed Bajaj Finance loan accounts appeared in his credit report.
   
• His CIBIL score had fallen to 627, and the State Bank of India rejected his personal loan application in March 2025.
   
• The District Consumer Commission held Bajaj Finance responsible for wrong credit reporting and directed correction through TransUnion CIBIL.
   
• The case shows why borrowers should check unknown loan entries before applying for fresh credit.

A police constable won Rs 75,000 after a district consumer commission found that 2 Bajaj Finance loan accounts, allegedly belonging to another person, had damaged his credit record. According to an Indian Express report, the State Bank of India rejected his personal loan application in March 2025 after his CIBIL score dropped to 627.

The case involves the constable, Bajaj Finance, TransUnion CIBIL, SBI and a retail purchase made at Darling Digital World on February 24, 2022. The purchase was a Haier washing machine worth Rs 29,900, paid for through a debit card. For borrowers, the warning is direct. Wrong credit reporting can delay loans, raise scrutiny from banks and force a person to fight a record he never created.

What Happened In The Constable’s CIBIL Case?

The constable had bought the washing machine in 2022 and paid the full amount through a debit card. He shared identity documents during the purchase process. He later said he had not taken any loan from Bajaj Finance for that product or any other linked transaction.

The problem came out when he applied for a personal loan from SBI in March 2025. His loan was rejected after the bank checked his credit score. When he checked further, 2 Bajaj Finance loan accounts appeared in his credit report. These accounts were allegedly linked to another person’s purchases and defaults.

The consumer forum examined the identity details. The report said there were differences in name, date of birth, Aadhaar number, voter ID, mobile number and address between the constable and the other borrower. That became the strongest point against the finance company.

The commission held Bajaj Finance responsible for wrong reporting. It said TransUnion CIBIL was not liable because it depends on loan data submitted by banks and financial institutions. Bajaj Finance was told to correct the entries through CIBIL and pay Rs 75,000 in total.

The table shows why the order goes beyond one credit score. A borrower can pay fully and still get trapped later if a lender maps another person’s default to the wrong profile.

How Will This Affect Borrowers In India?

For Indian borrowers, this case is a reminder to check credit reports before a loan application, not after rejection. Most people check their score only when a bank says no. That is late, especially when the loan is needed for a hospital bill, school fee, rental deposit or home repair.

The damage can be harsh. A wrong default may make the borrower look careless with repayment. The bank officer sees a low score and flagged account, not the full backstory. The consumer then has to chase the lender, the credit bureau and sometimes a consumer forum to prove a mistake that started outside his control.

There is a useful side too. The order shows that a consumer can challenge wrong credit reporting with documents. Payment proof, KYC copies, bank statements, loan rejection messages and written complaints can support the case.

This also applies to retail finance. Many shoppers share PAN, Aadhaar and phone numbers while buying appliances, phones or electronics. If a store or finance partner handles data loosely, the customer may face trouble years later. The safest habit is simple. Keep invoices, save payment proof and check the full credit report before any major loan plan.

What Do Experts Say And What Should Borrowers Do?

Credit experts often say that the credit report is as important as the score. A low score can be the first warning, but the loan account section tells the real story. Borrowers should check lender names, account numbers, overdue amount, open or closed status and enquiry details.

A LoansJagat explainer on personal loan default says missed EMIs can affect a borrower’s credit score and make future loans harder. In this case, the constable faced the same damage even though he denied taking those loans. That is the sharper lesson for genuine borrowers.

The solution starts with a written dispute. The borrower should first download the full credit report and mark the unknown account. Then he should write to the lender with identity proof, payment proof and a request to remove the wrong entry. The same complaint should be raised with the credit bureau.

If the lender does not correct the record, the borrower can use the National Consumer Helpline or approach the consumer commission. Phone calls help at the first stage, but written proof helps more when the case becomes formal.

What Was The Previous Development On Consumer Complaint Access?

Before this case came into public focus, the government had already widened online access for consumer complaints. The Press Information Bureau said E-Daakhil became operational across all states and Union Territories after the portal was launched in Ladakh on November 22, 2024.

E-Daakhil was first launched on September 7, 2020, by the National Consumer Disputes Redressal Commission. The portal allows consumers to file complaints, pay fees and track case progress online. This helps people who cannot visit a consumer commission again and again due to work, distance or paperwork.

The National Consumer Helpline has also become a bigger route for early complaints. It allows consumers to use 1915 and the online portal for grievances linked to goods and services. For a wrong credit report entry, this can be the first formal step before a consumer case.

These systems do not remove the stress of a wrong CIBIL entry. They do give the borrower a complaint trail. That written trail can later show when the issue was raised, what documents were sent and whether the lender acted.

What Did Stakeholders Say?

The constable said he had paid for the washing machine by debit card and had never taken the 2 Bajaj Finance loans shown in his credit report. His direct loss was the SBI personal loan rejection in March 2025 after the CIBIL score showed 627.

Bajaj Finance faced the adverse order. The commission found that the company had reported wrong credit information despite major KYC differences between the complainant and the other borrower. The firm was directed to correct the entries through CIBIL and pay the compensation and cost.

TransUnion CIBIL denied liability. Its stand was that it stores and reports information received from member credit institutions. The commission accepted that view and did not hold CIBIL responsible for the wrong lender data.

The report also said Darling Digital World, Bajaj Finance and another person named in the case did not appear before the commission or file written versions despite opportunities. They proceeded ex parte.

One newsroom caution remains. The available public report carries a location mismatch, with one part referring to Tiruvannamalai and another mentioning Kerala. For publication, “District Consumer Commission” is safer unless the original order is checked.

Conclusion

The Rs 75,000 order gives a strong warning to finance companies and retail loan partners. Wrong credit data can follow a consumer into the banking system and block genuine credit access. It also places a heavy burden on the borrower, who must prove that a default does not belong to him.

For Indian borrowers, the safest step is early checking. A credit report should not be opened only after rejection. Unknown loans, wrong overdue entries and unfamiliar lender names need quick written disputes. If the lender does not act, government complaint routes and consumer commissions can help turn a silent credit error into a formal claim.

FAQs

What happened in the constable's CIBIL case?

A police constable won Rs 75,000 after 2 disputed Bajaj Finance loan accounts appeared in his credit report and reduced his score to 627.

Why was the constable’s loan rejected?

State Bank of India rejected his personal loan application in March 2025 after his CIBIL score fell and disputed loan accounts appeared in the report.

Who was held responsible by the consumer forum?

The District Consumer Commission held Bajaj Finance responsible for wrong reporting and directed correction through TransUnion CIBIL.

Was CIBIL ordered to pay compensation?

No. The commission accepted that CIBIL reports data supplied by financial institutions and did not hold it liable in this case.

What should borrowers do if they find an unknown loan?

They should download the full report, raise a written dispute with the lender and credit bureau, save proof and escalate if needed.