Settled in 2023 — then sold, and reported "written-off."

By Supraja, Sr. Credit Analyst, Kenstone Credit.

Background

Mr. Mahesh had availed a loan from Bajaj Finance Limited, and settled the account in 2023 — the settlement amount duly paid. That should have been the end of it.

Instead, the account was subsequently assigned to Kotak Mahindra Bank — and there, it was incorrectly reported in his credit records as "Written Off," with overdue amounts continuing to accrue on paper till date. A debt he had settled was alive in the records of a bank he had never borrowed from. His credit profile and loan eligibility collapsed under a remark that was wrong twice over — wrong status, wrong outstanding.

The escalation ladder

I first escalated the matter to the Nodal Officer of Bajaj Finance Limited. The response made things worse, not better: the client was told he was still required to make additional payment — on an account already settled.

When the lender's own escalation channel defends the error, the path leads outside the lender. I took the matter to the Reserve Bank of India and the Prime Minister's Office through formal grievance proceedings. Upon detailed review, it was established that the incorrect reporting had occurred due to an error from the lender's side.

The result

Why this case matters

When a settled account is sold from one institution to another, the paperwork of the sale can overwrite the truth of the settlement — and the borrower pays for the error. This case shows the full escalation ladder working as designed: the lender's Nodal Officer first, and when that fails, the RBI and PMO grievance mechanisms that exist precisely to protect consumer financial rights. Proper escalation and accurate reporting aren't abstractions — here they were worth ₹5,000 in compensation and ₹20 Lakhs in restored eligibility.

You can read the client's own words in his public Google review →

Published with the client's written consent.

0:31

Thanks to their support, I was subsequently able to get a loan.

Mahesh

Bengaluru · ₹20L sanctioned after