FAQ’s – Cancellation of Debt Review

FAQ’s – Cancellation of Debt Review

The following are frequently asked questions about the cancellation of debt review.

Q: I want to remove my name under debt review but have not finished paying my debt. Is it possible?

Yes, this can be done if your debt review was made an order of court and the court order is subsequently rescinded OR an application is made to court to have you declared “not over-indebted.”

Q: I have paid up all my accounts that were under debt review but my credit report still reflects the debt review status. What must I do to remove the debt review status from my credit report?

A: Request a clearance certificate from your debt counsellor and submit it to the credit bureau. The credit bureau will then remove the debt review status from your credit report. In terms of the new National Credit Amendment Act 14 of 2014 which became effective on the 13th of March 2015, the clearance certificate can also be provided where there is an outstanding mortgage agreement or any other large credit agreement which reflect no arrears and are up to date and all the small credit agreements have been paid up.

Q: Please advice on how exiting the debt review prematurely will affect my credit record & do you think I can qualify to get credit finance immediately after exiting debt review?

A: Once the debt review process is terminated the debt review status will be removed from your credit report thereby improving your creditworthiness. We also advise that you get your latest credit reports and check whether any of your credit reports contain negative information other than the debt review status as any other negative information can affect your credit application even once the debt review status has been removed from your credit report. After all, whether you will be able to obtain finance after the removal of the debt review status depends upon the general state of your credit report.

Q: My debt review was a consent order that was confirmed by the National Consumer Tribunal. Can this be set aside?

A: Besides the powers given in the National Credit Act 34 of 2005 to the Magistrate’s Court to grant a court order confirming the reduced payment arrangements with the consumer, the said Act also gives the National Consumer Tribunal the power to grant a consent order confirming the resolution or reduced payment arrangements. Where a consent order has been granted, it is important to note that in terms of section 165 of the National Credit Act, an order granted by the National Consumer Tribunal can only be rescinded or varied in any one of the following instances:

  1. Where the order was erroneously sought or granted in the absence of a party affected by it;
  2. Where the order contains an ambiguity, or an obvious error or omission, but only to the extent of correcting that ambiguity, error or omission;
  3. Where the order was made or granted as a result of a mistake common to the parties to the proceedings.