14 Feb How to Check If You Are Under Debt Review
How do you check if you’re under debt review? You can check whether you’re under debt review with a copy of your credit report. You’ll see it under the public records section with a letter and number next to it – a status code.
Being listed as under debt review will impact your ability to take out loans. Under the National Credit Act, lenders are prohibited from lending money to people who receive government debt help, whether that’s debt review, sequestration, or an administration order.
Moreover, insurers may decline your application or charge you much higher premiums while you’re under debt review, or even refuse to issue you a payout after you’ve claimed. You’re also unlikely to be hired for finance jobs, as debt review indicates you’re not good at handling credit. To mitigate these undesirables, you should check whether you’re under debt review.
This blog comprehensively discusses how to check if you’re under debt review: what to look for, what the status codes mean, and how to remove debt review from your credit report.
How to Check for Debt Review
To check whether you’re under debt review, obtain a copy of your credit report. Locate the public records section. Under the public records, you’ll see debt review listed alongside items like sequestration and administration. You should see a letter and/or number next to it. This is called a status code. The NCR, lenders, bureaus, and debt counsellors use it to assess where you are in the debt review process.
A Guide to Status Codes
Debt review status codes have different meanings. They’re determined by where you are in the process. The codes are:
- A– You’ve applied for debt review and are being assessed
- A1– You exited debt review before being declared over-indebted
- B– You’ve been assessed as not over-indebted
- C– You’ve been assessed as over-indebted
- D3– Formal restructuring of your debt has started
- D4– Formal debt restructuring of debt is completed and you’ve been granted a court order
- F1– All your restructured debts have been paid except your bond
- F2– All your restructured debts have been paid, including your bond
- G– The Magistrate’s court took back your debt review order or you fought the debt review application and were declared not over-indebted
- G1– The Magistrate’s court declared you not over-indebted
- I– You’ve been declared deceased
- J– You’ve been sequestered
Let’s take a look at how you can remove debt review.
Debt Review Removal
The debt review removal process differs by whether you have completed the review or would like to exit it.
Debt Review Credit Clearance
To remove debt review from your credit record once you’ve fulfilled the terms of your credit agreement, you’ll need to lodge a dispute with the bureaus. To lodge a dispute, you’ll need to request a clearance certificate, or Form 19, from your debt counsellor. We can help you write a dispute letter to the bureaus detailing that you want the flag removed from your profile.
By law, your debt counsellor must issue you a clearance certificate within seven days of finishing debt review. The credit bureaus must review and assess your dispute no more than 21 days after you lodge it.
Once your dispute is approved, the flag will be removed from your credit profile. From there, you’ll be able to begin responsibly rebuilding your credit score.
Debt Review Rescindal/Exit
You can only remove – have an order rescinded – before you’re declared over-indebted, after you’ve fulfilled your debt review obligations, or if your application was incorrectly filed. Cape Town Legal Consultants’ attorneys can help you assess your case and gather relevant documents to remove debt review and undergo the court process.
If you would like help with credit clearance or exiting debt review, contact Cape Town Legal Consultants. We would love to help you take your first steps to financial freedom.