Account Purchased in CIBIL Report

An account purchased in CIBIL report usually means your old loan or card dues were sold to another company. Think of a shop that sells its pending payments to a firm that now collects them. The firm is usually an ARC (asset reconstruction company, a firm that buys bad loans from banks).

Your report may then show 2 entries for the same old debt:

• The old lender's entry. It is often marked Written Off and Account Sold.

• The buyer's entry. It is marked Account Purchased, with a current balance.

This is the same debt, not 2 debts. The 2 entries carry different account numbers, which is what causes the panic. Their balances may also differ. Interest, charges and timing can all change the figure between the sale and today.

ARCs are RBI-registered credit institutions, and they report to credit bureaus the way banks do. So the buyer's entry is not a rumour. It is a reported record.

A note on wording. These labels come from how lenders and buyers report. Read them as "usually" and not as fixed definitions. Your own report and your own papers are what count.

To see how a write-off works on the old lender's side, read what Written Off means. For help reading the layout, see how to read your report.

Next, why this happens at all.

A salaried woman in Pune stopped paying a credit card after a job loss. Two years later, she opens her report and sees a company she has never heard of next to the same card.

Here is the usual chain:

1. EMIs or card payments stop.

2. The bank marks the account as bad (NPA, a loan marked as bad by the bank, usually after 90 days of missed payments). It later writes it off in its books.

3. The bank sells the account to a buyer.

4. The buyer reports its own entry.

A write-off in the bank's books does not mean you are forgiven. It is an accounting step. The debt stays, and in a sale it moves to the buyer.

Why do banks sell? Usually to clear bad loans off their books. A write-off is often reported after about 180 days, though this varies. Read more on what a write-off means for your report, and what an NPA account is.

One missed EMI does not lead to a sale. It takes months of missed payments, and usually a bank's own policy, before an account reaches this stage. If a legal case is involved, see what it means when a suit is filed.

None of this was a choice you made out of preference. It followed a hard patch. Seeing a new name on your report is a result of that, not a fresh problem. The next section helps you work out which entries to act on.

Not every extra entry is a problem. Here is how to tell.

The pattern is normal when:

• There are 2 entries for 1 old debt. One is marked sold and the other purchased. That is the usual sale pattern.

• The start dates are the same or close. Both entries trace back to the same original account.

Something looks wrong when:

• A purchased account is one you do not recognise. You may have been tagged with someone else's debt, or a wrong match.

• The balance is far higher than what you owed. Interest and charges explain some gap, but a very large one needs a written explanation.

• An entry appears for a loan you already repaid. Your payment proof and NOC matter here.

• A settled account still shows as purchased with a balance. The update may not have reached the buyer's entry.

• A third entry appears for the same debt. That can be an error. Read about when the same loan shows twice.

A quick check helps. Compare the opening dates, the original limits and the balances across the entries. If they line up, the pattern is likely normal. If they do not, write it down.

You can see both entries side by side with Credit Insights, which reads your Experian report. Next, the steps to check them properly.

The same checks work for any entry you are unsure about.

1. Download Your Free Reports
   Get 1 full report from each bureau. A single report may show only 1 side of the sale. Use your free report.

2. Find Both Entries
   Note the company names, opening dates, balances and status on each. This tells you whether the 2 entries match.

3. Ask the Old Lender for the Sale Details
   Request in writing the sale date, the buyer's name and your account number. The old lender knows who now holds the debt.

4. Ask the New Owner for a Notice and Statement
   Request the written notice that the account was transferred and a full statement. A statement lets you check what is being asked of you.

5. Match the Numbers
   Compare principal, interest and charges across all papers. Mismatches are the strongest grounds for a dispute.

6. Dispute Mismatches in Writing
   Write to the company that reported the entry, then raise it with the bureau. Wrong data is corrected at source by the reporting company. See how to raise a dispute.

7. Track the 30-Day Clock
   Note the filing date and reference number. Delay beyond 30 days earns ₹100 a day.

Here is a worked example. You file a dispute on 5 November. The 30-day limit ends on 5 December. The issue is resolved on 20 December. That is 15 days of delay, so 15 x ₹100 = ₹1,500.

The 30 days are split: 21 for the bank or ARC and 9 for the bureau. Compensation is due within 5 working days. Disputes about how the score is calculated, and cases already in court, are outside this rule. For help spotting mistakes, see how to fix wrong entries.

Next, what a purchased entry means for your money.

A purchased entry touches your money in 5 ways:

• The debt is still owed, now to the buyer. The sale changes who you deal with, not how much you owe in principle.

• Loan and card approvals get harder. An unresolved entry on the report can slow or block new credit.

• Banks see both entries. They read the story as a default that was sold.

• The new owner may contact you. They hold the debt now, so they may write or call, in a civil way.

• Settling or repaying changes the status the buyer reports. The buyer sends the update once the account ends.

Here is an example in rupees. An old card dues of ₹60,000 is sold. The buyer's entry shows ₹74,000. That is a ₹14,000 gap. Ask for a statement that explains it, line by line: principal, interest and charges.

No exact score drop can be given. The effect depends on your starting score and your history. Scores run from 300 to 900.

A purchased entry does not vanish after payment. It usually updates to Settled if you settle, or shows as repaid if you pay in full. A Settled mark can stay up to 7 years. [LEGAL FLAG: no RBI source for the 7-year figure. Send to legal review.]

For how banks view these marks, read how lenders read settled accounts. The impact of settlement on your score is covered separately.

If a number looks wrong, the law gives you a fixed timeline to get it fixed.

Softer options come first. Settlement comes last. Read the table by asking 2 questions: who decides, and what can it change?

The order is simple. Dispute it if any detail is wrong. Repay in full if you can. Ask the owner in writing for a new repayment schedule. Settlement is only for people genuinely unable to repay.

Ways to Deal With a Purchased Account

Rates and ranges shown are indicative. Final terms decided by the bank. FREED is not a Loan Provider. No outcome is guaranteed. Please verify directly with your bank.

In practice, start at the top and move down only if the earlier rows do not fit. If a sold home, car or gold loan is your concern, that is outside what FREED handles.

Settlement is not something a borrower chooses out of preference. It is for people who genuinely cannot repay in full. The owner of the account decides the terms, and any offer needs a written letter. The letter should say how the account will be reported afterwards.

For the basics, read what loan settlement is and how settlement affects your CIBIL. If you are unsure, FREED's team can look at your situation on a free call and tell you what options exist.

Settlement is not something a borrower chooses out of preference. Banks only consider it when you are in genuine financial difficulty and truly unable to repay the full amount.

If that is your position, FREED's Loan Settlement Plan, also called "Settle My Loans", is a structured path. Here is what FREED does for you:

• FREED looks at your full picture: loans, income, expenses and what you can repay.

• It builds a plan around that picture.

• You save a fixed amount each month into a settlement fund.

• When the fund is enough, FREED's team handles the back-and-forth.

• The bank or account owner decides the terms. You accept or decline each offer.

• You pay, and you receive a settlement letter.

FREED also follows through on the NOC and the report update. This takes months, not days. The waiver can be up to 50%*, and a Settled mark can stay up to 7 years.

FREED covers unsecured loans only: credit cards, personal loans, BNPL and app loans. How a sold account is handled depends on its owner, so talk to the team about your own case. More than 20,00,000 people have been counselled by FREED, which started in 2020 in Gurugram.

Rates and ranges shown are indicative. Final terms decided by the bank. FREED is not a Loan Provider. No outcome is guaranteed. Please verify directly with your bank.

FREED Shield is open to everyone, and it applies only to abusive or threatening calls, or visits without the right steps.

A written-off or purchased entry already weighs on your report. What changes after settling depends on your starting score.
Rates and ranges shown are indicative. Final terms decided by the bank. FREED is not a Loan Provider. No outcome is guaranteed.

Use the result as a guide only. Your real report decides what happens. To plan what comes after, read how to rebuild your score after default.

Updates take a cycle or two. These 5 habits keep you steady.

• Tip 1: Keep the transfer notice, statements and every letter. They are your proof if an entry looks wrong later.

• Tip 2: Put every request in writing and note reference numbers. A written trail is easier to prove than a phone call.

• Tip 3: Ask for the NOC and a written note on how the account will be reported. It tells you what to look for on your report. See the NOC guide.

• Tip 4: Check your report after 1 to 2 reporting cycles. The buyer reports the update only after the account ends.

• Tip 5: After any payment, never share an OTP or login with anyone. Your OTP gives access to your accounts. If a mark still looks wrong, see how to clear a written-off mark.

You are not the first person to find a new name on a report, and there are clear steps to take.

There is no row for the meaning of "Purchased", bank-to-ARC sale rules, the 180-day write-off or the "up to 7 years" line. None has a verified primary source. The writer must re-read each section number on RBI's own PDF.