A debt review clearance certificate is a certificate that verifies that a consumer has satisfied all obligations under every credit agreement that was subject to debt review court order or debt review repayment agreement (excerpt mortgage loan). The issuing of a clearance certificate signals the end of a successful debt review process. The effect is that even if the consumer has a long-term agreement which was subject to debt review such as mortgage bond, they can obtain a clearance certificate after every other short-term credit agreement under debt review is paid in full. In terms of the National Credit Act (NCA) 34 of 2005, the debt counsellor and not a court, must issue a clearance certificate.
A consumer under debt review can only be issued with a clearance certificate when:
Credit providers must issue paid up letters on the short-term agreements prior to the issuing of a clearance certificate by the debt counsellor to ensure that the debt has been repaid in full. Once the clearance certificate is issued this must be forwarded to all the credit bureaus together with the paid-up letters. The debt counsellor and credit bureaus have to update their systems to show that the consumer has successfully completed debt review process.
Contact Debt Sage, the debt counselling experts today. We can help to issue a clearance certificate if all your accounts under debt review have been paid up so that you are able to enter into new credit agreements.