06 Mar How to Get Out of Debt Review Fast

Are you under debt review with no way to get out? Maybe you feel trapped in a process you don’t need to be in because you’ve paid your debts or can pay off your debts as initially agreed. Whatever the case may be, there are two ways to exit debt review: with a rescindal order and a clearance certificate. You can get a rescinded if your application filing (Form 16) was incorrect or you’ve paid off your debts.

Debt review removal is paramount to regaining financial freedom. With a debt review flag on your credit report, lenders won’t award you loans and credit, obtaining rental property may be harder, and you may not qualify for finance roles, as debt review is a huge financial red flag – it indicates that you’re financially irresponsible and incapable of managing your finances.

In this post, we discuss how to get out of debt review fast: with a credit clearance certificate or a debt review rescindal order.

Let’s begin!

Option One: A Clearance Certificate

When you’ve paid off all your debts per the debt review repayment plan, you’re eligible for a clearance certificate. You can submit this certificate to the credit bureaus, who must expunge all records of debt review and the debts leading up to it from your credit profile.

You’re allowed to request a credit clearance certificate at any time during the debt review process, but debt counsellors only grant them once you’re no longer over-indebted and have completed your repayments.

The NCA and Amendment 19 of 2014 state, “A consumer whose debts have been re-arranged in terms of Part D of this Chapter, [may apply to a debt counsellor at any time for a clearance certificate relating to that debt re-arrangement] must be issued with a clearance certificate by a debt counsellor within seven days after the consumer has— (a) satisfied all the obligations under every credit agreement that was subject to [the debt re-arrangement]” (section 71).

Cape Town Legal Consultants can help you submit your clearance certificate to the bureaus. We’ll help you draft a credit clearance letter, gather the relevant documents, and ensure regular follow-ups so that the flag is off your credit profile as soon as possible. If the bureaus reject your dispute, we’ll fight on your behalf in conjunction with the credit Ombudsman to ensure the flag is removed from your credit report.

Option Two: Debt Review Rescindal

There’s no legal framework that regulates clearing debt review. In fact, once you’re under debt review, it’s almost impossible to exit unless there was an error in your application (Form 16).

The NCR (National Credit Regulator) guidelines for debt review removal say that if your debt counsellor didn’t properly file your application, you can apply to have your application removed.

Some errors in applications include:

• You didn’t sign off on your Form 16 (application form)
• Annexure B of the NCR’s guidelines wasn’t followed
• Your debt counsellor didn’t compile a COB (certificate of balance)
• Five days after your initial assessment, a full financial audit wasn’t done

Cape Town Legal Consultants can help you assess whether your application was filed correctly. If it wasn’t, one of our attorneys can advocate for your removal from debt review. After your application has been rescinded, we can submit proof of rescindal to the bureaus, ensuring the flag is removed from your credit record.

Let Cape Town Legal Consultants Be of Assistance

Cape Town Legal Consultants can help you obtain your credit clearance certificate, submit it to the credit bureaus, and ensure the debt review flag is removed. Additionally, our experts can help you ensure your debt review application is rescinded by assessing whether your application was properly submitted. If it wasn’t, we’ll advocate for your removal from debt review on your behalf. Let us assist you – contact Cape Town Legal Consultants today. We’ll get you out of debt review.