Debt review is a legal process that assists individuals in managing excessive debt while safeguarding them from legal action by creditors. However, it’s crucial to understand the timing and procedures for resuming normal financial activities after the debt review process. This page addresses some frequently asked questions regarding life after debt review, including:
- How to Confirm if Your Debt Review Status Has Been lifted?
- How long does it take for the debt review flag to be removed?
- Can I obtain a loan after being removed from debt review?
How to confirm if your Debt Review Status has Been Removed
After exiting debt review, verifying that the debt review flag has been removed from your credit report is essential. The flag signifies that you’re under debt review and limits access to new credit. To confirm that your debt review status has been lifted, follow these steps:
- Obtain a Clearance Certificate: If you’ve completed the debt review process, your debt counsellor should issue Form 19 (Clearance Certificate). This certificate confirms that all your debts have been settled (except for home loans, which must be up to date).
- Check your credit report: Obtain a free credit report from the credit bureaus. If the debt review flag still appears, the update hasn’t been processed yet or it is still within the 21 business days turnaround time.
- Verify with the National Credit Regulator (NCR): Contact the NCR to ensure your name is no longer under debt review. You can reach them by calling 0860 627 627.
- Submit your Clearance Certificate: Send your Clearance Certificate to major credit bureaus to update your status and remove the debt review listing.
- Follow up with your debt counsellor: If the process is delayed, kindly request that your debt counsellor escalate the removal of the debt review listing.
How long does it take for the debt review flag to be removed?
The turnaround time for removing the debt review flag following the issuance of a clearance certificate by a debt counsellor is 21 business days. Credit bureaus typically require 21 business days to update their records upon receiving a clearance certificate from a debt counsellor. However, delays can occur if there are discrepancies or if the clearance certificate is not promptly submitted to all relevant credit bureaus. To ensure a smooth process, follow up with both your debt counsellor and the credit bureaus to confirm that your status has been updated. You can also request a credit report after the 21-business-day period to verify that the debt review flag has been removed.
Can I obtain a loan after being removed from debt review?
Yes, you can apply for a loan after being removed from debt review, as you are not precluded from obtaining a loan. It is important to avoid overborrowing. Only take on credit you can afford to repay comfortably. Use this opportunity to manage your finances wisely and avoid falling into debt again. There are a few important factors to consider:
- Check Your Credit Score: A low credit score following a debt review may impact loan approvals. Obtain a complimentary credit report from TransUnion, Experian, Compuscan, or XDS.
- Rebuild your credit profile. Consider taking small credit products like store accounts or credit cards to improve your score, and making consistent, on-time payments to build a positive credit history.
Do you need assistance with removing the debt review flag or have a specific query concerning your debt review status?