Customer frustration over inaccurate credit scores and delayed data updates has surged sharply across India’s financial system. Complaints against credit information companies have quadrupled in the last three years, reflecting the rising reliance on retail credit and borrowers’ growing sensitivity to even minor data mismatches.
According to the latest review by the Reserve Bank of India’s Financial Ombudsman, grievances against credit bureaus have climbed from 1,039 cases in 2022–23 to 4,585 cases in 2024–25, marking a jump of more than 340%. A majority of these complaints involve disputes over loan repayment history, overdue flags, or incorrect outstanding balances — issues that directly affect an individual’s ability to access credit or secure favourable terms.
Overall complaints cross 2.95 lakh in FY25
The broader financial sector has also seen a continued rise in customer dissatisfaction. Total complaints across banks, NBFCs, and payment entities increased to 295,000 in FY25, compared with 293,000 in FY24 and 234,000 in FY23.
Though the year-on-year rise has moderated, analysts note that the volume of complaints indicates growing expectations around transparency, service quality, and error-free digital reporting.
Private banks overtake PSBs in complaint volume
In a significant shift, private-sector banks recorded more complaints than public-sector banks during FY25.
- Private banks: 111,199 complaints
- Public-sector banks: 103,117 complaints
This marks the first time that private lenders have surpassed PSU banks in customer grievances — a trend analysts attribute to the rapid expansion of retail lending, credit cards, and digital services.
Which categories saw the biggest surge?
1. Loans and advances (Highest share of grievances)
Loan-related issues accounted for over 84% of all complaints against credit information companies. These include:
- Delayed or incorrect reporting of EMI payments
- Settled loans still showing as overdue
- Discrepancies in outstanding balances
- Instances of unauthorised or fraudulent loan entries
Even a small error can impact loan eligibility, interest rates, or credit limits.
2. Deposit-related complaints rise sharply
Complaints linked to savings and deposit accounts grew to 20.63% in FY25, signalling difficulties in dispute resolution, KYC updates, and customer servicing.
3. Credit card grievances climb past 17%
In just two years, the share of complaints related to credit cards rose from around 12% to 17.16%, driven by issues such as billing discrepancies, unrecognised transactions, and delayed reversals.
4. ATM–debit card complaints fall significantly
Grievances related to ATM and debit card transactions dropped from 14.56% in FY23 to 7.47% in FY25, as digital payments and UPI usage continue to replace card-driven transactions.
5. NBFC and payment system complaints also up
- NBFCs: 33,072 → 43,864
- Payment systems: 3,456 → 5,617
The rise is aligned with the rapid growth of fintech lending and digital payment platforms.
Why are consumers increasingly agitated?
Experts say the spike in complaints highlights a gap between the speed of digital lending growth and the accuracy of backend credit reporting systems. Borrowers often face issues such as:
- EMI payments not being updated on time
- Sudden credit score drops without clear explanation
- Historical loan data remaining unresolved
- Incorrect or duplicate loan entries
- Disputes taking weeks or months to close
With India’s credit ecosystem becoming more central to home loans, auto loans, and even small-ticket digital credit, customers today expect faster rectification and greater accountability from lenders and credit bureaus.
