Sitting inside a screening file is itself an exposure. Declined transfers with no explanation, unexplained delays at new counterparties, and quiet re-pricing at insurers are the practical outputs. The correction is procedural rather than argumentative.
A principal who discovers that transfers from an established counterparty have started to be declined without stated reason, and whose applications at two unrelated new counterparties have stalled at the compliance stage, may not have done anything of substance. They may simply have been included in a screening file used by all three, on the basis of an event that has since been resolved but not corrected in the file.
Under most modern regimes the individual has a right of access to their file at the screening vendor, a right to request correction of factual errors, and, in some regimes, a right to see the underlying source. The correction runs against the vendor, not against the counterparty that consumed the vendor's data, and it propagates to consuming counterparties on the vendor's next update cycle rather than immediately.
When counterparty behaviour changes without explanation, check the screening file before checking the counterparty. A correction worked through the vendor is often the fastest route back.