Kalaburagi: The District Consumer Disputes Redressal Commission has ordered LIC Housing Finance Ltd (LIC HFL) to pay Rs 40,000 to a customer whose CIBIL score was adversely affected due to a PAN linking error. The commission also directed the company to rectify its records and issue a no due certificate, warning of a daily penalty of Rs 500 for any delay in compliance.
Background of the Case
Anand Prabhu, a resident of Kalaburagi, had availed a home loan of Rs 30 lakh from LIC Housing Finance on April 26, 2021. Later, on November 21, 2023, he obtained a fresh loan from the Bank of Vadodara's Kalaburagi branch and fully repaid the amount to LIC HFL. However, on November 9, 2024, a technical or administrative error at LIC HFL's Noida branch allegedly linked his PAN to another individual's bank account. This mistake caused a significant drop in his CIBIL score, leading to financial loss and mental distress, as per the complaint.
Complaint and Proceedings
Despite repeated visits to the company seeking correction of the error, no action was taken. Prabhu then approached the consumer commission through advocate Shivaprakash Saradagi and filed a complaint on June 3, 2025. After hearing both sides, the commission found a deficiency in service on the part of LIC HFL.
Commission's Order
In its order dated June 11, the bench, comprising in-charge president Malati Guranna and member Lokesh, directed LIC HFL to delink the PAN from the wrongly tagged account and correct the error. The company was also asked to issue a no due certificate confirming full repayment. The commission awarded Rs 25,000 as compensation, Rs 10,000 for mental agony, and Rs 5,000 towards litigation costs, totaling Rs 40,000, to be paid within 45 days. Failure to rectify the discrepancy within the stipulated period will invite a penalty of Rs 500 per day.
