Banking · Banking Regulations and Laws
A medium-sized textile firm has been a client of a private bank for 10 years with a high credit score (780+). Last month, its score dropped to 620 due to a reported 'Cheque Bounce' dispute with a supplier, which the firm claims was a technical server error by the bank. According to the Credit Information Companies (Regulation) Act, what should the bank employee's next step be?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Advise the customer to pay a processing fee to a third-party credit repair agency to fix the score.
- 2Initiate a dispute resolution process, verify the technical error, and provide corrected data to all CICs within 30 days.✓
- 3Tell the customer to contact the Credit Information Company (CIC) directly as the bank cannot alter reported data.
- 4Ignore the firm's claim and immediately downgrade the loan account to a Sub-Standard asset.
Correct answer
Initiate a dispute resolution process, verify the technical error, and provide corrected data to all CICs within 30 days.
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