04 Apr How to Legally Remove Debt Review from Your Record
Removing debt review from your credit record is imperative to regaining financial agency and control over your financial future. With the debt review flag on your credit profile, you’ll be refused credit, have a tough time renting property, be denied finance jobs, pay higher insurance premiums – or even be refused insurance.
The process isn’t difficult. There are three steps to legally remove debt review from your credit record: obtaining a clearance certificate, disputing the flag with the bureaus, and receiving the outcome. That’s it! Of course, the steps have some details you should know about, like writing a credit clearance letter or disputing a negative outcome, but we’ll cover that extensively in this post.
Let’s discuss how to legally remove debt review from your credit record when you’ve paid off your debts and what to do if the bureaus reject your dispute.
Ready?
How to Legally Remove Debt Review from Your Credit Record
Legally removing debt review from your credit record isn’t difficult – you need to:
- Obtain a clearance certificate
- Write a credit clearance letter
- Dispute the flag with the bureaus
- Rebuild your credit responsibly
Let’s take a look at these steps in more detail.
Obtain a Clearance Certificate
The law (National Credit Act) says that your debt counsellor must issue you a clearance certificate within seven days after you’ve cleared your debts per your agreed-upon repayment plan.
Suppose your debt counsellor refuses to issue your clearance certificate. In that case, you can appeal to the Magistrate’s or Tribunal court, which will order your debt counsellor to issue your certificate (if your debt counsellor is unlawfully or unjustifiably withholding your certificate).
Write a Credit Clearance Letter
After you’ve obtained a credit clearance certificate, it’s time to appeal to the bureaus. To do this, you need to write a credit clearance letter describing what you would like to dispute that includes information verifying your dispute.
Typically, documents needed include identification (ID or passport), proof of residence, and evidence of what you would like to dispute – in this case, a debt review clearance certificate.
Dispute the Flag with the Bureaus
When you have your credit clearance certificate, letter, and evidence in order, submit it to every bureau that lists the debt review flag on your credit record. Under the National Credit Act, they must expunge the debt review flag and all the debts that led to it.
Per the NCA, the bureaus have 21 days to review your dispute and reach a verdict. If you are unhappy with a verdict, you can appeal it to the National Finance Ombudsman Scheme for free.
How Cape Town Legal Consultants Can Help You
Cape Town Legal Consultants has a team of experts ready to help you clear the debt review flag from your credit record. With years of industry experience and sound industry knowledge, we’re South Africa’s choice credit clearance firm.
Our experts can help you write a credit clearance letter, gather the documents needed to evidence your dispute, and dispute a negative outcome with the National Finance Ombudsman Scheme. Let us assist you – contact us today.