Credit Score Impact Due to KYC Issue — How Can This Be Corrected?

[shubham sharma]

Hi everyone,

I’m facing a situation where my car loan EMI was delayed in getting credited to my loan account due to a KYC-related issue at the bank’s end, even though funds were available and payment was not delayed from my side.

Because of this, a late payment seems to have been reported, and my credit score has dropped.

Has anyone faced a similar KYC-related issue affecting credit reports? What is the best way to get this corrected with the bank and credit bureaus?

Any suggestions would be appreciated.

 

[anuragmukherjee28]

Yes, this does happen and it’s usually fixable. Since the delay was due to a KYC issue at the bank’s end and not because you missed the payment, the bank is responsible for correcting the reporting.

First, make sure your KYC is fully updated and ask the bank to give you a written confirmation that the EMI delay happened due to their internal/KYC issue. Then raise a request with the bank to reverse the late payment reporting and send a correction to the credit bureaus (CIBIL/Experian/Equifax). Banks can update or correct bureau data, but it usually takes 30–45 days.

In parallel, you should also raise a dispute directly with the credit bureau, mentioning that the delay was due to a bank-side KYC problem and that the EMI was funded on time. Attach any proof you have (bank email, statement, or acknowledgement).

If the bank is slow to act, escalate to the grievance cell or nodal officer. In most genuine cases like this, once the bank accepts fault, the credit score gets restored in the next bureau update cycle.