Account Sold and Account Purchased in CIBIL report?
In the CIBIL report, statuses like Account Sold and Account Purchased are seen. What exactly are Account Sold and Account Purchased statuses? Suppose your CIBIL report is showing an Account Sold or Account Purchased status—then how will you remove it?
What Are Account Sold and Account Purchased Statuses
See, both are credit facility statuses in the CIBIL report. Here, a customer has taken a loan from a bank, or it could also be from a non-banking finance company. When the customer does not make timely payments and the company considers that loan as bad, then that company may sell the loan to another bank or to an asset reconstruction company. When they sell that loan, the status “Account Sold” is written in the credit report.
Now, the second company that has purchased that loan shows the status as “Account Purchased.” Here, that company can be a bank, or it can also be an asset reconstruction company.
Earlier Process vs Current RBI Guidelines
This method, this process, existed earlier as well—I am talking about a few years ago. At that time, when a company or a bank used to give a loan and that loan became bad debt, they would sell it to another bank or to an asset reconstruction company. But at that time, they did not write any status like Account Sold there. Yes, the second company that used to purchase it would only report it in CIBIL, but even then they did not write a status like Account Purchased there.
Suppose that loan had already been written off and had become bad debt, then they used to write the status as Written Off there. But according to the new RBI guidelines, the company that is selling that loan is now also writing a status like Account Sold in the CIBIL report. Yes, when they write Account Sold, at that time they also mention the account close date there.
How Account Purchased Status Works
Now, the company that is purchasing it writes Account Purchased, and until the payment is made, this status remains open there. Generally, it is seen that such loans are purchased by asset reconstruction companies, which are called ARC in short.
Impact on CIBIL Score
Now, if you have not made the payment for this loan, what will be the impact? Obviously, the impact will be negative. The score goes down.
Can Account Sold and Account Purchased Status Be Removed
Now here, these statuses—Account Sold and Account Purchased—you can remove them. See, the Account Sold status that has been written cannot be removed because it is given as per RBI guidelines, even if you are repaying your loan. But when they write the Sold status, at that time they also show the loan account as closed. They mention it.
There, you only have to check that the Account Sold status is written, whether the account is showing any current balance or not, and whether the close date is mentioned or not. There is no current balance; it is showing only zero, and the close date is also mentioned. Then there is not much problem there. Only the Account Sold status will be visible there.
Even if you file a complaint there, they do not remove it.
How to Remove Account Purchased Status
But where the Account Purchased status is showing, you can definitely remove it. You should make the full payment to that bank or to the ARC. When you make the payment, they remove your status there and mention the close date.
Now here, contact that bank. If it is an ARC, then ask them how much amount needs to be paid. Pay the full amount and definitely take the nodal certificate there. After this, you should raise an online dispute in CIBIL. You can file a complaint in CIBIL for updating.
One way is that you can log in and raise a dispute. The second way is that you will get an online form in CIBIL. There also, you can write the details properly, attach documents, and send the documents. Both are different methods. Being a CIBIL rectification agency.
Effect of Account Sold After Closure
If the account is already updated as closed, then Account Sold does not impact your CIBIL score. You cannot remove it from the CIBIL report. Now, if your account is already showing Account Sold and you have also made the payment, then you cannot remove the Account Sold status. And it does not have much impact.
When you make the full payment to the next company, which is the ARC, and close the account by paying the full amount, and they mention it as closed and mark it as standard, then you do not face much problem. Going forward, you will also get loans.
Loan Options After Account Sold or Purchased
Yes, some banks here may not want to give you a loan. Still, some banks will give you a loan, and here, if you are not getting an unsecured loan, then in that case you can try for a mortgage loan.
Our Team support
I hope I have made you understand about Account Sold and Account Purchased. But if your report is showing some other credit facility status that you do not understand, then for that also you can contact us.
If you have applied for a loan in any bank and the bank manager has rejected your loan application, saying that your CIBIL score is low, but after reading the report you are not able to understand why your CIBIL score is low and for what reason your loan is getting rejected, in that case you can send your report to us.
My ScoreRocket team will read your report and analyze it to tell you where the problem is and why your CIBIL score is low. And this report analysis is absolutely free. After that, if you want to give us your report for rectification and want to improve your score, then you can also take our service.