• We assess your income, household expenses, credit agreements and outstanding debts to understand your financial position.
• Your debt counsellor determines whether you may be over-indebted and whether debt review may be appropriate for your circumstances.
• If you proceed with debt review, your financial circumstances are used to develop a repayment proposal based on what you can reasonably afford after essential living expenses.
• The proposed arrangement considers your eligible credit agreements and overall financial position.
• Your relevant credit providers and credit bureaus are notified when your debt review application proceeds.
• Your debt counsellor manages the assessment and restructuring process in accordance with the National Credit Act.
• Your debt counsellor works with the relevant credit providers to establish a repayment arrangement based on your assessed affordability.
• Depending on the circumstances, the restructuring may involve changes to repayment terms or interest rates.
• Where required, the proposed repayment arrangement is submitted for consideration by the appropriate court.
• Where the relevant requirements are met, the agreement can become legally binding through a court or consent order, providing the applicable legal protections under the debt review process.
• You make one structured monthly payment through a registered Payment Distribution Agency (PDA).
• The PDA distributes the payment to your participating credit providers according to the applicable repayment arrangement.
• Once the applicable debts have been settled and the requirements for completing debt review have been met, your debt counsellor can issue a Debt Review Clearance Certificate (Form 19).
• The relevant credit bureaus are then notified so that your debt review status can be updated.
Debt review removal refers to the process of formally ending your debt review status and ensuring that the relevant information on your credit profile is updated.
The appropriate process depends on your circumstances. For consumers who meet the applicable requirements for a clearance certificate, their debt counsellor may issue a Form 19 clearance certificate. Other circumstances, such as a lawful withdrawal or a court order, may require a different process.
It is important to understand which route applies to your case before paying for a removal service or making changes to your existing repayment arrangement.
The National Credit Regulator (NCR) oversees the debt counselling industry and provides guidance on debt review processes. However, debt review removal is not a one-size-fits-all procedure, and the NCR does not simply remove every consumer from debt review on request.
The steps required depend on your circumstances and the applicable legal requirements. Your debt counsellor can assess your position, explain the appropriate route and advise which documentation may be needed.
Be cautious of companies that promise guaranteed removal for an upfront fee. The NCR has warned consumers about misleading debt review removal services and the risks of paying for services that may not be legally available or successfully performed.
The debt review removal process begins by establishing your current status and determining whether you qualify to complete or otherwise exit debt review.
Depending on your circumstances, the process may involve:
• Reviewing your status: Confirm whether you remain under debt review and identify any applicable court or tribunal order.
• Checking your obligations: Establish whether the requirements for a clearance certificate have been met or whether another lawful route may apply.
• Obtaining the necessary documentation: Your debt counsellor can explain what evidence or documents are required for your circumstances.
• Following the applicable process: This may involve the issue of a clearance certificate or another legally appropriate procedure.
• Checking your credit profile: Once the relevant documentation has been processed, check that your debt review status has been updated with the relevant credit bureaus.
The exact steps and timeframes can vary. Your debt counsellor should explain what applies to your case and what you can reasonably expect at each stage.
If you want to get out of debt review, start by speaking to your debt counsellor about your current status and the legal options available to you.
If you have met the requirements for completing debt review, you may qualify for a clearance certificate. If you have not completed the applicable repayment requirements, leaving the process may be more complicated and could require a different legal route.
Do not stop making payments or assume that your debt review status has ended simply because you have requested removal. Confirm the correct process for your circumstances before making changes to your repayment arrangement.
A debt review clearance certificate, commonly known as a Form 19 clearance certificate, is a document issued by a debt counsellor in the circumstances provided for under the National Credit Act.
It confirms that the consumer has discharged the relevant obligations in terms of the applicable debt rearrangement order, subject to the requirements for issuing the certificate.
The certificate is an important part of the process for eligible consumers to have their debt review status updated. It is not simply a document that can be purchased or issued on request without meeting the relevant requirements.
To establish whether you qualify for a clearance certificate, contact your debt counsellor and ask them to review your repayment status and the requirements that apply to your case.
Your debt counsellor can confirm whether the relevant obligations have been met, identify any outstanding requirements and explain the documentation needed. Where the requirements for a Form 19 clearance certificate are satisfied, the certificate can be issued in accordance with the applicable process.
If you believe you qualify but are having difficulty obtaining a certificate, request a clear explanation of what remains outstanding. You may also seek guidance from the NCR or appropriate legal assistance if the matter cannot be resolved.
There is no single timeframe that applies to every debt review removal case. The time required depends on your circumstances, the applicable process, whether the necessary requirements have been met and how quickly the relevant documentation is processed.
Updating your credit profile may also take additional time after the required documentation has been submitted.
Ask your debt counsellor what steps remain outstanding, who is responsible for each step and when you should follow up. You can then check your credit reports to confirm that the relevant status has been updated.
Be cautious when dealing with companies that promise to remove debt review quickly, guarantee an outcome or demand payment upfront.
The NCR has specifically warned consumers about debt review removal services that charge substantial upfront fees despite the removal being unavailable or unsuccessful. Section 126A(3) of the National Credit Act sets requirements for services offered to improve a consumer’s credit record or remove information from a credit bureau, including restrictions on receiving payment before the service has been fully performed and disclosure requirements.
Before engaging a service provider, establish whether the proposed process is lawful, what service will actually be performed and what the payment terms are. Your debt counsellor can help you understand the appropriate route for your circumstances.
Understanding your options is the first step towards completing your debt review journey. Whether you need clarity on your eligibility, a clearance certificate or the process for updating your credit profile, getting the right guidance can help you move forward with confidence.
Contact Debt Rescue to discuss your circumstances and understand the next steps available to you.
