Wrongly added as co-applicant in loan, credit score affected – what should I do?

Hi everyone, need some advice.

In 2022, a two-wheeler loan was taken by my brother, but somehow my name was added as co-applicant without my knowledge or consent. I never signed anything or gave documents.

I didn’t even know about this until 2025 when I saw it in my credit report, and it was already showing default.

Since then:

I raised complaint with lender

Filed complaint with RBI

Sent legal notice

They first offered “suppression” (temporary fix), which I didn’t accept. Now they say it is “delinked” but haven’t given any proper written confirmation.

Also, even recently, it was again reported as default which is really frustrating.

My CIBIL score is fine now, but other bureaus are still low (~550), so issue is not fully resolved.

They are offering small compensation (~12k), but I’m not sure if I should accept or go to consumer court.

Questions:

Should I settle or go legal?

What kind of compensation is realistic?

Any advice would help 🙏