CIBIL to use 'Skipped Track' to find defaulters
As per a story in the DNA, the Credit Information Bureau of India (CIBIL) is keen to launch a product that tracks borrowers who have defaulted and then disappeared.
The product, called ‘Skipped Track’, allows for tracking of such persons and in controlling NPAs. CIBIL said it was still early days and they needed sufficient data before the product could actually be put to use. However, a major hurdle is that presently, laws do not permit sharing of credit information between countries, so if a person leaves the country and surfaces in another country and goes on a borrowing spree, there is no way to track that.
All this is fine, but the bottom line is that banks and lending institutions have to exercise caution when dishing out loans and free credit cards with sky high limits. There is no point running after defaulters when they never had the ability to pay off a loan or card debt in the first place.
