A dispute flag on a CIBIL Credit Report usually appears after you challenge information reported by a bank, NBFC, credit card issuer or another credit institution. CIBIL marks the relevant account, enquiry or information as “Under Dispute” while the matter is being verified.
The flag itself does not mean that CIBIL has found the information incorrect. It simply shows that a dispute is currently pending. Once the dispute is closed, the “Under Dispute” notification should be removed. Whether the actual loan or credit-card information changes depends on the response received from the lender.
Why Does an “Under Dispute” Flag Appear in a CIBIL Report?
The flag generally appears when you submit a dispute regarding information such as:
- a loan that does not belong to you;
- an incorrect outstanding balance;
- a loan shown as active even after closure;
- wrong overdue amounts;
- duplicate loan accounts;
- incorrect payment history;
- an unauthorised credit enquiry;
- incorrect personal or contact information; or
- another error appearing in the CIBIL report.
After the dispute is submitted, CIBIL marks the relevant field, account or section as “Under Dispute” and sends the issue to the credit institution that originally reported the information.
Can You Remove a CIBIL Dispute Flag Yourself?
You cannot normally delete an “Under Dispute” flag manually from your credit report.
The dispute has to reach a resolution or closure. CIBIL cannot independently change or delete lender-reported credit information without confirmation from the concerned credit institution.
Therefore, the proper way to remove the dispute flag is to complete the dispute-resolution process.
How To Remove a Dispute Flag From Your CIBIL Report
Step 1: Check the Current Dispute Status
Log in to your myCIBIL account and check the dispute status.
Go to your Credit Report or Dispute Centre and identify the dispute that is still showing as open or pending.
Keep the dispute ID or service request number available because you may need it while contacting CIBIL or the lender.
CIBIL also sends updates regarding dispute status to the registered email address.
Step 2: Identify Which Lender Is Responsible for the Disputed Information
Check the account against which the dispute was raised.
For example, if an old personal loan is incorrectly showing an outstanding balance, note:
- lender name;
- loan account number;
- current balance shown;
- amount overdue;
- account status; and
- date of last update.
CIBIL receives account information from banks and other credit institutions. Therefore, where the underlying data is wrong, the lender generally has to verify and provide the corrected information.
Step 3: Contact the Bank or Credit Institution
If the dispute has been pending, contact the concerned bank, NBFC or card issuer directly.
Provide your:
- loan or credit-card account number;
- CIBIL dispute ID;
- PAN or other identification requested by the lender;
- loan closure letter, if applicable;
- payment receipts;
- no-dues certificate;
- account statement; and
- any other document supporting your claim.
Ask the lender to verify the disputed information and send the correct data or its confirmation to CIBIL.
This step can be particularly useful when the lender’s internal records are correct but its latest information has not yet reached the credit bureau.
Step 4: Wait for the Lender’s Verification
CIBIL forwards the dispute to the concerned credit institution for verification.
The lender may either confirm that the existing information is correct or agree that a correction is required.
CIBIL states that dispute resolution generally takes around 30 days, although the actual process depends on the time taken by the credit institution to respond.
Step 5: Let CIBIL Close the Dispute
Once CIBIL receives the lender’s response, the dispute can be closed.
If the lender accepts your claim, the relevant information is corrected.
If the lender confirms that its original information is correct, the disputed information may remain unchanged. However, once the dispute itself is closed, the “Under Dispute” notification should be removed.
This is an important distinction: removing the dispute flag does not necessarily mean that the disputed information will be deleted or changed.
Step 6: Check the Updated CIBIL Report
After receiving confirmation that the dispute has been resolved, obtain or access the updated CIBIL report.
Check whether:
- the “Under Dispute” flag has disappeared;
- the account information has been corrected, if applicable;
- outstanding amounts are correct;
- account status is correct; and
- the payment history reflects the lender’s confirmed information.
CIBIL states that when the concerned credit institution agrees to a correction, the changes are made and a complimentary report is sent to the registered email address within five working days, with the “Under Dispute” flag removed from the relevant field.
What If the Dispute Is Rejected?
A rejected dispute does not automatically mean that the dispute flag remains permanently.
If the lender verifies that the information already appearing in the CIBIL report is correct, the dispute can be closed without changing the account information.
The “Under Dispute” indication should disappear once the dispute is closed, while the lender-confirmed information continues to appear in the report.
If you still believe the information is incorrect, contact the lender and provide stronger documentary evidence before pursuing the matter further.
What If the Dispute Flag Remains After Resolution?
If CIBIL shows the dispute as resolved but your latest report still contains an “Under Dispute” flag, first make sure you are viewing an updated report rather than an older downloaded copy.
If the flag continues to appear, contact CIBIL and provide:
- your dispute ID;
- the date the dispute was closed;
- the lender’s response or confirmation;
- the relevant account details; and
- a copy of the report showing the continuing dispute flag.
You should also contact the lender if the underlying account information has still not been updated.
Can CIBIL Remove Incorrect Loan Information Directly?
No. CIBIL does not independently decide to delete or modify loan information reported by a lender.
When you dispute an account, CIBIL communicates with the concerned credit institution. The information can be changed after the institution verifies or supplies the corrected details.
This is why simply contacting CIBIL may not solve a dispute involving an incorrect loan balance, closure status or payment history. The lender’s verification is usually essential.
Does an “Under Dispute” Flag Reduce the CIBIL Score?
The “Under Dispute” notation itself should not be confused with a negative payment status such as overdue, settled or written-off.
However, the underlying information being disputed may affect your credit profile if it involves late payments, outstanding dues or another negative account status.
Resolving genuine errors is therefore important, particularly before applying for a home loan, personal loan, vehicle loan or credit card.
Avoid Raising Unnecessary Disputes
A CIBIL dispute should normally be raised only when there is a genuine inaccuracy.
Do not dispute correct negative information simply because it is reducing your credit score. If a lender has correctly reported delayed payments, outstanding dues or another valid account status, the dispute mechanism cannot be used simply to erase that history.
Instead, clear legitimate dues and ask the lender to report the updated account position wherever appropriate.
FAQs
Q1. How long does it take to remove an “Under Dispute” flag from CIBIL?
CIBIL states that the dispute-resolution process generally takes around 30 days, depending on how quickly the concerned credit institution responds. The flag is removed once the dispute is resolved.
Q2. Will the disputed loan be deleted when the flag is removed?
Not necessarily. If the lender confirms that the loan information is correct, the dispute can be closed and the flag removed while the loan information remains in the report.
Q3. Who removes the CIBIL dispute flag?
CIBIL removes the “Under Dispute” indication when the dispute-resolution process is completed. However, corrections to lender-reported data require confirmation from the concerned credit institution.
Q4. What should I do if my bank has already corrected the account but CIBIL still shows a dispute?
Check your dispute status and latest CIBIL report. If the issue remains, contact both the lender and CIBIL with the dispute ID and proof of the correction so the reporting can be verified.
Q5. Can I raise another dispute if the first one is closed?
Yes, where information in the credit report is still genuinely inaccurate, you can raise a new dispute with the necessary details and supporting evidence.
