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. Approach this interaction with a composed and polite demeanour, elucidating the situation and presenting your case logically. 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
Erroneous reporting can significantly impact your credit report. Credit information is furnished to bureaus. If the incorrect loan status is affecting 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. Additionally, seek guidance from consumer protection agencies or financial ombudsmen, who specialise in addressing such disputes. These entities often offer insights and mediation to resolve consumer grievances.
Legal recourse
If all other avenues prove fruitless, seeking legal counsel becomes a viable option. Consulting with a lawyer specialised in consumer rights or financial matters can provide clarity on further legal actions or 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 the rare event of such an occurrence, your transaction history serves as concrete evidence to validate your payment. It’s crucial to communicate your case effectively, backed by supporting documents. Lenders typically rectify errors upon presentation of verifiable proof.”
“Upon full repayment of your loan, ensure to obtain written confirmation from the lender affirming the complete settlement of the loan. This document serves as official acknowledgment, stating that you hold no further liabilities regarding the loan. Maintaining transaction details and securing written confirmation post-payment acts as a safeguard, ensuring clarity and preventing potential issues arising from discrepancies in records,” adds Shetty.
While this process might appear arduous, diligently following these steps can ultimately ensure the accurate reflection of your financial credibility. Remember, maintaining a calm and composed approach during these proceedings can expedite the resolution of this distressing financial conundrum.