Borrower Concerns Grow as Complaints Against Credit Bureaus Increase Across India

Borrowers in India are increasingly flagging errors in their credit reports, leading to a marked rise in complaints lodged with the financial ombudsman. 

Recent data shows that issues linked to credit information companies have grown steadily over the past 3years, suggesting rising awareness among consumers and greater scrutiny of credit data practices.

Complaints Against Credit Bureaus Rise Steadily

New figures indicate a considerable increase in grievances directed at credit information companies. Complaints have climbed from just over 1,000 in 2022–23 to nearly 4,600 in 2024–25. 

Most of these cases involve concerns around loans and advances, which account for more than four-fifths of the total issues recorded.

Broader Financial Sector Sees Gradual Uptick in Disputes

The overall volume of complaints before the ombudsman reached 2.95 lakh in FY25, slightly above the levels seen the previous year. 

Although the pace of growth has moderated, the numbers suggest that financial institutions are navigating larger customer bases and rising expectations of accuracy and timely service.

Bank-Related Complaints Reflect Changing Customer Patterns

Banks continue to be the largest source of grievances. While complaints linked to loans and advances remain the most common, issues concerning deposit accounts have become more prominent, now forming over 20% of all banking disputes.

Credit card-related complaints have also grown noticeably in the last 2 years, as per news reports.

Shift in Payment Behaviour Reduces ATM and Debit Card Issues

Reports linked to ATMs and debit cards have declined significantly, dropping from more than 14% to under 8% of total complaints. 

This fall may reflect greater use of digital payment platforms, reducing traditional friction points for customers.

Private Banks Now Receive More Complaints Than Public Sector Banks

Complaint patterns also highlight the growing weight of private banks. In FY25, private lenders registered slightly more complaints than public sector banks, a shift that may be associated with increased retail activity and higher customer engagement levels.

NBFCs and Payment System Firms Also See Higher Grievances

Non-banking financial companies continue to face rising customer dissatisfaction, with complaints increasing from around 33,000 to nearly 44,000 over three years. 

Non-bank payment system participants have also seen a gradual rise in concerns, reflecting broader use of digital platforms.

Read More: RBI Plans Weekly Credit Score Updates: What Does This Mean for Borrowers?

Conclusion

The upward trend in complaints suggests both heightened consumer awareness and ongoing gaps in data accuracy, service quality, and digital transaction experience.

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