What is Debt Review Removal?
Debt review removal is a specific process that involves a debt counselor issuing a clearance certificate to a consumer who has completed paying off their debts listed under debt review. Once your obligations are met, your debt counsellor issues a clearance certificate officially confirming your completion of the program. According to the National Credit Regulator (NCR) debt review guidelines, this situation qualifies a consumer for removal from debt review. Below, we explain other qualifying instances in detail.
The issuing of a debt review clearance certificate in this instance signals the end of a successful debt review process. In terms of the National Credit Act, a debt counsellor must issue the clearance certificate when the consumer has paid off all accounts under debt review. Only a registered debt counsellor can do this because he/she has access to the National Credit Regulator (NCR) Debt Help System. The NCR Debt Help System is a database that lists all the people who have applied for debt review, shows the status of their application, and is linked to the credit bureaus.
How To Get Debt Review Removal?
Before you approach anyone for debt review removal, there are essential things you need to understand. In terms of debt review guidelines, debt review removal or clearing your name from debt review can only be done in the following instances:
- If a consumer has withdrawn from debt review before issuing Form 17.2 (before being declared over-indebted).
- When the consumer has settled all debt obligations and a clearance certificate has been issued (Section 71 (2) (b) (i) of the National Credit Act, 2005). Note that this should not be costly as it is a straightforward process, no attorney is involved, and no court process is involved.
- If one has been under debt review and their circumstances have changed, i.e. when their income has increased considerably and you are no longer over-indebted. Through the debt counsellor, the consumer has to prove their income and expenditure, i.e. household budget. Note that this is only possible if the consumer does not have a court order.
- It is important to note that if there is a court order under debt review in place, it is no longer possible to approach the courts to rescind the order because the law has changed this. On 3 September 2019, the Johannesburg High Court delivered a judgment that changed the law, in this instance, it is no longer possible for one to exit debt review.
How Long Does It Take to Get Debt Review Removal?
At Debt Sage we assist consumers with debt review removal, i.e. to clear your name from debt review. We can issue a clearance certificate and remove the debt review flag from the credit bureaus in 21 days maximum. That is how long it takes for one's name to be cleared from debt review after paying off their accounts and we have issued a clearance certificate. The exact timeframe depends on how quickly the credit bureaus remove the flag after we send a certified Form 19, which is the clearance certificate, to all credit bureaus with paid-up letters attached.
In South Africa, we have 3 leading credit bureaus:
- Transunion - https://www.transunion.co.za
- Experian - https://www.experian.co.za
- XDS - https://www.xds.co.za
Guide to Debt Review Removal
Here is a step-by-step guide for the debt review removal process.
- Complete the debt review removal application form;
- An assessment is conducted by first pulling up your credit report to confirm the number of agreements or accounts that one has open;
- Obtain confirmation from credit providers in the form of paid-up/ prescribed letters. (If you have paid-up/ prescribed letter please forward them;
- Update your status on NCR DHS to F2 status;
- Generate Form 19;
- Send Form 19 to all the credit providers;
- Certify Form 19;
- Send certified Form 19 to all credit bureaus with paid-up letters attached.
We would need paid-up letters for all the accounts under debt review. If we do not send paid-up letters to credit bureaus with the clearance certificate, they will not remove your debt review status from their records.
Contact Debt Sage, the debt review experts today, if you have finished paying off your debt and want to clear your name from debt review.
How Much Does it Cost to Clear My Name from Debt Review?
Since the process of removing a consumer from debt review is straightforward, Debt Sage offers this service for just R1,150 (including VAT) for administrative processes.
Can I Apply for Credit Immediately After Debt Review Removal?
Once the credit bureaus are informed that you have finished paying off your debt and have updated the debt review flag on your credit profile, you can apply for credit. This update process typically takes about 21 business days. After this period, you can re-enter the credit market with the new mindset and skills that your Debt Sage debt counsellor would've helped you develop.
How Debt Sage Can Help With Your Credit Bureau Information
If you feel uncertain about your information with credit bureaus, we can assist in the following ways:
- Obtaining your credit report and helping you study and understand the information listed on your credit report;
- Negotiating repayments to settle outstanding debts to have the information removed;
- Identifying information that qualifies for removal from your credit report, for example, in the event of the debt that has been prescribed in terms of the Prescription Act 68 of 1969;
- Identify information that does not qualify for removal and advise what can be done to remove this information from your credit reports.
For the most accurate assessment of your specific situation, consult with a Debt Sage registered debt counsellor who can provide personalized guidance based on your circumstances.
Important Points to Remember
- You're only eligible for a clearance certificate after fully repaying all debts included in your debt review
- The debt counsellor must issue the certificate within 7 working days of your final payment
- Credit bureaus should update your status within 21 business days after receiving the certificate
The process is straightforward when you've completed all payments, and the costs are significantly lower than attempting early withdrawal from debt review through court applications.
If you believe you qualify for a clearance certificate, contact Debt Sage directly to initiate the process.