16 Oct Clear Debt Review: Your Rights Under NCA Section 71
Overcoming your debt through debt review is incredibly rewarding, and afterwards, you should be able to enjoy the financial freedom you have put in the effort to achieve. If the debt review flag still reflects on your credit report after you’ve received your clearance certificate, it can be frustrating. Somewhere, something went wrong, and you are left dealing with the aftermath. At Cape Town Legal Consultants, our team know how to legally remove debt review from your record, and we’re here to help.
When you are looking to clear debt review, your rights under NCA Section 71 play a big role in your defence. The National Credit Act is there to protect you as a consumer, and it outlines the legal process that should be followed for you to benefit from debt review.
Understanding NCA Section 71
According to NCA Section 71, your debt counsellor has the responsibility of providing you with a clearance certificate (form 19), and they must do so within 7 days of you meeting all the requirements of your debt arrangement order. All your debts must be paid off in full, except for your home loan, which must reflect up-to-date payments.
Once you have been issued the certificate, your debt counsellor has seven days to file the certificate with the National Credit Regulator (NCR) and all registered credit bureaus. They then need to ensure the debt review flag is removed from your credit report, so that your credit score can gradually begin to improve.
This section of the act clearly states that you have a legal right to restore your credit status, as long as you’ve met all required conditions for debt review removal. Are you concerned that your credit report shows the debt review flag when it shouldn’t? Here is how to check if you are under debt review.
Your Rights After Debt Review
Once you understand your rights, you can proceed to rectify wrongdoings with confidence. Under Section 71, you have the right to be issued a clearance certificate when you’ve met all the requirements of the debt review agreement. You also have the right to have your credit record restored within a reasonable amount of time. If your debt counsellor delays the process or fails to communicate effectively, it is within your rights to escalate the matter to the National Credit Regulator (NCR).
Look forward to life beyond debt review with our guide to financial freedom. Don’t settle for less than you deserve – if you’ve earned the right to credit clearance and have worked hard to overcome your debts, you should be able to enjoy the benefits.
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