Long answer:
Understanding Debt Review Removal
Debt review removal refers to the formal process of exiting debt review after successfully repaying all debts listed under your debt counselling agreement. A registered debt counsellor issues a clearance certificate through the National Credit Regulator's (NCR) Debt Help System, confirming the completion of your debt review.
Qualifying for Debt Review Removal
According to NCR guidelines, you can only be removed from debt review in specific circumstances:
Pre-Declaration Withdrawal: You withdrew before being officially declared over-indebted (before issuing Form 17.2).
Completion of Debt Repayments: All debts listed in your debt review are fully paid, and a clearance certificate is issued by your debt counsellor.
Improved Financial Situation: Your financial circumstances significantly improve, and you can demonstrate that you're no longer over-indebted. This option is only available if no court order for debt review exists.
Timeframe for Debt Review Removal
The debt review removal process typically takes up to 21 business days. Once your debts are cleared and a clearance certificate (Form 19) is issued, it is sent to credit bureaus like TransUnion, Experian, and XDS, which then update your credit profile.
Costs Involved in Debt Review Removal
Debt review removal is a straightforward administrative process. At Debt Sage, we charge an administrative fee of R1,450 (excluding VAT) for completing this process.
Recognizing and Avoiding Debt Review Removal Scams
Debt review removal scams specifically target vulnerable individuals struggling with debt. Fraudsters exploit victims' desperation by falsely promising quick, easy exits from debt review. These scams typically involve requests for direct payment into the fraudster’s personal bank account instead of the official channels, an immediate and glaring red flag.
In recent incidents, fraudsters posing as legitimate debt removal specialists have falsely assured clients they can expedite their removal from debt review, even when these clients clearly do not qualify. This fraudulent action not only violates ethical standards but also breaks the law, causing severe financial harm and potentially leading to serious legal consequences for victims. Knowing how to identify these fraudulent schemes can save you from severe financial harm.
Red Flags to Watch For:
Personal Account Payments: Legitimate debt counsellors never request payment to personal accounts. Always verify the payment methods.
Immediate Promises: Quick guarantees of debt review removal without following legal processes are highly suspicious.
Unsolicited Communications: Be wary of unsolicited calls, emails, or messages offering rapid debt review removal services.
Why Does Fraud Occur?
Fraud usually happens due to three interconnected reasons, known as the Fraud Triangle:
Financial Pressure: Individuals under extreme financial stress may resort to fraudulent activities.
Perceived Opportunity: Fraudsters see an opportunity to exploit vulnerabilities, believing they won’t be caught.
Rationalization: Individuals justify their fraudulent behavior internally, believing they deserve the benefits or will cause no significant harm.
Categories of Fraud
Fraud generally falls into two categories:
Individual Fraud: Scams directly targeting people, including identity theft, phishing schemes, and Ponzi schemes.
Organizational Fraud: Fraud involving businesses, either internally (employee fraud) or externally (vendor scams).
Debt review removal scams often involve a blend of these categories, particularly when employees misuse their positions.
Legitimate Debt Review Removal Process
Here’s a clear, step-by-step guide on how to legitimately complete your debt review removal:
Application Submission: Complete and submit the debt review removal application form.
Credit Assessment: Your debt counsellor verifies your accounts have been fully settled by reviewing your credit report.
Obtaining Paid-Up Letters: Secure confirmation letters from your creditors indicating debts have been paid.
Updating NCR Database: Your status is updated on the NCR Debt Help System.
Issuing Clearance Certificate: Your counsellor generates and certifies Form 19 (clearance certificate).
Notifying Credit Providers: Send the certified Form 19 to all creditors.
Credit Bureau Notification: Forward the clearance certificate and paid-up letters to all major credit bureaus for credit profile updates.
Applying for Credit After Removal
After your debt review status is cleared, you can re-enter the credit market. This usually takes about 21 business days from the date your clearance certificate is submitted. It’s crucial to apply the budgeting and financial management skills learned during debt counselling to avoid future debt issues.
How Debt Sage Assists with Credit Bureau Information
Debt Sage provides comprehensive support to ensure your credit information is accurate:
Obtaining and interpreting your credit report.
Negotiating with creditors for the removal of outdated information.
Identifying debts eligible for removal under the Prescription Act.
Advising you on debts that cannot be removed and exploring other potential solutions.
Steps to Take if Scammed
If you become a victim of a debt review removal scam, act immediately:
Immediate Reporting: Inform your bank and freeze your accounts to limit damage.
Notify Authorities: Contact law enforcement and the NCR.
Raise Awareness: Inform others to prevent further victimization.
Essential Reminders
A clearance certificate is only issued after all debts are settled.
Clearance certificates must be issued within seven working days after final payment.
Credit bureaus typically update your profile within 21 business days.
Legitimate debt review removal is cost-effective and safer than attempting illegal or unauthorized methods.
Contact Debt Sage
For reliable, professional assistance, contact Debt Sage. Our registered debt counsellors are ready to guide you through the debt review removal process, providing clarity, security, and peace of mind. Stay vigilant, informed, and safe throughout your journey to financial freedom.