How to cancel debt review: what the law allows

The NCR's withdrawal guidelines say the National Credit Act has no process that lets a consumer withdraw from debt review after applying in the prescribed manner. This applies even before your counsellor has issued a Form 17.2. The old voluntary withdrawal status and form were switched off on 7 March 2022.

The courts point the same way. In Van Vuuren v Roets (2019) it was held that a High Court cannot declare that a consumer under debt review is no longer over-indebted or release them from debt review. Once a rearrangement order exists, no court can declare you not over-indebted or end the review.

Your counsellor cannot cancel it for you either. A counsellor has no power to withdraw a consumer from debt review. They can only withdraw or suspend their own services.

Debt review does not cancel your debt. It lowers your payments so you can pay from your disposable income without borrowing more, which can mean paying for longer.

The way out is a clearance certificate under section 71 of the National Credit Act. You qualify in one of two situations:

1. All the debts covered by your restructuring order are paid in full.
2. All your short-term debts are paid and the only debt left is a home loan that is up to date under the order. Vehicle finance, credit and store cards and loans are short-term debts and must be paid first.

Once you have met your obligations, your counsellor must issue the certificate within seven days. If you paid some credit providers directly, give your counsellor paid-up letters so the certificate can be issued. The counsellor then has to file it with the national register and the credit bureaus, and the bureaus remove the debt review flag.

You can only apply for new credit once the certificate has been issued. The full steps are in our guide to debt review removal and the clearance certificate.

If your problem is with your counsellor rather than with debt review itself, you can transfer. A consumer can move to another debt counsellor at any stage, without giving a reason and without the existing counsellor's consent (NCR guideline 004/2026, June 2026).

• The 60 business day period does not restart when you transfer.
• The new counsellor may not charge you again for an application, administration, restructuring or legal fee you have already paid, and unused fees must be refunded.
• Fees for work already done must be paid before the transfer.
• Once you hand in the prescribed documents, no transfer request may stay outstanding for longer than seven business days.

Before you choose a new counsellor, check that they are registered with the NCR and ask for their NCR registration number.

There are a few situations where debt review ends without a clearance certificate. They are narrow, and none of them is a way to opt out.

• A magistrate finds you not over-indebted before an order is made. Before a rearrangement order exists, you can put additional facts to the Magistrate's Court alongside the counsellor's proposal. If the court finds you are not over-indebted, the review ends. If it finds you are over-indebted, the review continues and you cannot withdraw. If the court rejects the application, you remain liable for the counselling fees for work done and for legal fees under the NCR fee guidelines.
• You never applied. If you were placed under debt review without your knowledge or consent, you can complain to the NCR. If the NCR finds the correct process was not followed, it is deemed that you did not apply, the review ends and the bureau listing is removed.
• Sequestration or liquidation. A sequestration or liquidation order ends the debt review. It is a separate and serious legal process, not a way to cancel.

If you are unsure which situation you are in, get advice before you do anything.

Some people stop paying in the hope that the review will fall away. It does not work that way.

If you default, a credit provider may give notice to terminate the review of the defaulted agreement, but only at least 60 business days after you applied. It can then enforce that agreement. You stay in debt review, and the only way to lose the bureau status on a terminated agreement is to pay the full outstanding amount on it.

Your counsellor may also suspend their services if you do not cooperate or do not pay their fees, and that does not take you off the credit bureau either.

If you cannot keep up with your payments, tell your counsellor early. Stopping payment leaves you with the flag and without the protection.

You must be the one who approaches a counsellor and applies voluntarily. NCR Circular 3 of 2024 says that placing a consumer under debt review without their knowledge and consent is prohibited conduct. It gives examples such as phone calls about 'consolidation' or 'reduced interest' and e-signature links.

If you say you never applied, your counsellor must make available a completed and signed Form 16, or the documents showing when you supplied your information. Lodge your complaint with the NCR on 0860 627 627 or [email protected].

If you can afford to pay your debts off sooner, ask your counsellor and each credit provider for a written settlement figure. Ask for a paid-up letter once each debt is settled.