DEBT REVIEW REMOVAL


DEBT REVIEW REMOVAL

 

How to Remove Debt Review from Your Credit Profile

The Debt Review Removal Process is designed to assist individuals who were previously registered as debt review clients but are now financially capable of handling their debt repayments without assistance because they are no longer over-indebted. To remove a debt review listing from your credit profile, it is essential to follow the legal process outlined in Section 87 (1)(a) of the National Credit Act of 2005 and work with experienced professionals.

To initiate the process of terminating debt review and removing it from your credit profile, the first step is to contact a Registered Debt Counsellor. They will review all your documentation and assess the state of your indebtedness, provide advice, and forward your application to a registered attorney for legal processing.

An attorney will assist with legal preparation, representation, and ensure that all necessary documentation, such as affidavits, is signed, a case number is obtained, and a court date is scheduled. You don’t need to attend court as the legal team will handle the process on your behalf.

Following the court proceeding, the Magistrate will make a ruling. If the decision is favorable, the debt review listing will be removed from your credit profile, and you will be eligible to apply for new credit.

If you’re interested in terminating the debt review process, please complete the online form below. This will enable us to assess your situation and provide further advice. It’s crucial to note that the initial assessment is free, and no upfront fees are required.

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Most frequent questions about Debt Review Removal.

The Debt Repair Centre has compiled a list of frequently asked questions from both potential and existing clients regarding removing their names from debt review or debt counselling, as well as other debt-related topics. If you require further information, please contact us at [email protected]

Is it possible to request debt review removal even if I haven’t fully paid off my accounts?

Whether you’re eligible to apply for debt review removal while you haven’t finished paying your accounts depends on your current debt review application. If a debt review order was granted, and the court confirmed that you’re over-indebted, you won’t qualify for debt review removal. In this case, a debt counsellor will reject your debt review removal application and suggest that you contact your current debt counsellor for a clearance certificate.

However, if we have evaluated your situation and found no court order in place, and you meet the criteria for debt review removal, our debt counsellor will commence the debt review removal process according to The National Credit Act.

Under the new National Credit Amendment Act 14 of 2014, which became effective on March 13, 2015, the clearance certificate may also be issued where there is an outstanding mortgage/bond agreement, and all other debts have been paid off and closed.

Can I apply for debt review removal if my debt review order was a consent order that was confirmed by the National Consumer Tribunal?

If your debt review order was a consent order that was confirmed by the National Consumer Tribunal, you cannot apply for debt review removal. The Tribunal order has the same effect as a Magistrates Court Order, and once it is made an order of the court, you are not eligible for debt review removal.

Before applying for debt review removal, it is important to contact your debt counsellor and confirm if a court order was granted. You should also request the following documents from your debt counsellor:

  • Initial Application Form (Form 16)
  • Payslip used when applying
  • Withdrawal letter (17.W)

What are the required documents to submit when applying for debt review removal?

  • Form 16 from the previous Debt Counsellor.
  • 17.W (Withdrawal letter) from the previous Debt Counsellor.
  • Payslip used when applying for debt review and your recent payslip.
  • ID Copy
  • Marriage certificate (if applicable)
  • Paid-up letters and recent statements for active accounts.
  • Proof of address

How long does the debt review removal take?

The process of removing debt review typically takes between 3 to 6 months to complete, and may take even longer if there are complications.

Usually, the debt review removal application will be in court within 60 business days. After that, the timeline depends on the court’s decision-making process.

When the matter is granted, it will take a minimum of 20 business days for registered credit bureaus to update your profile.

How much does it cost to remove debt review?

Debt review removal fees differ because they are not set or regulated as per the debt review fee structure.

We have easy payment terms to make Debt Review Removal affordible.

The 10-Step Process for Removing Debt Review Listing

To get your debt review listing removed, follow these steps:

  1. Contact The National Debt Review Center by completing the free online form HERE and submit all required application documents.

  2. A Registered Debt Counsellor will then contact you to conduct an over-indebted assessment to evaluate your state of indebtedness and explain the process.

  3. After evaluating your application, the debt counsellor will make recommendations and send legal notifications to all your creditors.

  4. Your creditors will respond with updated balances and paid-up letters.

  5. Start paying the premium.

  6. The file will be referred to legal for legal preparation. (You will be contacted and requested to come in for signatures)

  7. Court documents will be created, and the legal team will contact you.

  8. Once all court documents are signed by all relevant parties (consumer, debt counsellor, and attorney), the matter will be referred to a Magistrate Court near you.

  9. The Magistrate will then make a decision.

  10. If the matter is granted in your favor, the Debt Counsellor will update the NCR debt help system and notify all registered credit bureaus that you are no longer under debt review.

Guidelines for Withdrawing from Debt Review in 2021

Debt review was introduced as a relief measure for over-indebted consumers under the National Credit Act of 2005 (NCA). However, the act does not specify how a consumer or debt counsellor (DC) can withdraw from the process.

To provide a solution for consumers whose financial circumstances have improved while under debt review and wish to revert to contractual payments, the credit industry implemented a voluntary Form 17.4 withdrawal process in 2011. This was later replaced on February 19, 2015, by the Withdrawal Guidelines 002 of 2015 issued by the National Credit Regulator (NCR). However, legal clarity was needed, which led to a review of the guidelines following a High Court ruling in the Van Vuuren v Roets and Others case.

In 2019, the High Court issued a judgment that provided clarity on whether a consumer under debt review, whose financial situation has improved, can withdraw from the process without a clearance certificate. This led to an intensive review of the NCR Withdrawal Guidelines 002 of 2015 by the Credit Industry Forum (CIF), resulting in the development of new guidelines to be applied by all industry participants.

The NCR has issued these guidelines to replace all previous Withdrawal Guidelines from the date of issue and publication. It is important to note that the NCA, its regulations, or case law will take precedence over provisions made in these guidelines and will be amended where necessary.

All credit providers, credit bureaus, and debt counsellors must comply with the current legal framework and prevailing case law within which these guidelines are established. Non-compliance with these guidelines should be reported to the NCR.

Is it possible to cancel Debt Review and pay reduced installments directly to creditors?

The decision to terminate Debt Review is subject to the consumer’s ability to demonstrate that they are no longer over-indebted. If the consumer cannot afford to increase their Debt Review payments to the amounts they were paying prior to entering Debt Review, it is unlikely that the application will be approved, unless the creditors have agreed to accept the reduced payments.

Once Debt Review is terminated, creditors cannot take legal action to recover debts.

Creditors are prohibited from taking legal action to recover debts while a consumer is under Debt Review, as stated in Section 88 (3) of the National Credit Act. This provision applies only during the consumer’s Debt Review period. However, once the consumer’s Debt Review is terminated, creditors regain the right to take legal action to enforce a credit agreement that was previously subject to Debt Review. Typically, creditors will demand the settlement of any accumulated arrears on the account and return to the original initial repayment amount specified in the credit agreement.