Debt review removal companies: be careful

Since the Van Vuuren v Roets judgment (2019) and the NCR's withdrawal guidelines, which have applied since 7 March 2022, you cannot withdraw from debt review once you have applied. Your counsellor cannot withdraw you either: a counsellor can only withdraw or suspend their own services. Once a court has confirmed a debt review order, no court can rescind it or declare you not over-indebted.

The normal exit is a clearance certificate. You can be cleared when all the debts under the order are paid in full, or when 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 settled first.

Your counsellor must issue the certificate within seven days after you have met your obligations, and must file it with the national register and the credit bureaus within seven days of issuing it. The bureaus then remove the debt review flag and the default information that led to it. Your payment history is not removed, except as the normal retention periods provide. If your counsellor refuses or fails to issue the certificate, you can apply to the National Consumer Tribunal to review the decision.

Three other endings exist, and none of them is something a removal firm can sell you:

• Before an order is made. You may put additional facts before the Magistrate's Court to have your counsellor's proposal rejected. If the court finds you not over-indebted, the debt review ends. If it finds you over-indebted, debt review continues and you cannot withdraw. If the court rejects the application, you remain liable for the counsellor's fees for the work done and for legal fees under the NCR fee guideline.
• If you never applied. If you say you did not apply, you can complain to the NCR. Your counsellor must then produce your signed Form 16 or the documents showing when you gave the information. If the NCR finds the correct process was not followed, you are treated as not having applied, the review ends and the bureau listing is removed.
• Sequestration or liquidation. A sequestration or liquidation order brings the debt review to an end, but it is a different and far heavier process.

There is no fixed price for removal, because for a valid, active debt review there is nothing lawful to buy. In March 2022 the NCR said consumers were being charged in excess of R8000 for "debt review removal", which the law does not support. NCR Circular 2 of 2025 says consumers are being asked to pay up to R10 000 upfront and that in most instances the status is not removed as claimed.

Section 126A(3) applies to anyone who offers a service to improve a credit record or remove information from a credit bureau. They may not receive any payment until the service has been fully performed, and they must give you a disclosure statement in the prescribed manner and form.

The costs that are real are your counsellor's fees under the NCR fee guideline. See what the fees are. The NCR fee list has no separate fee for a clearance certificate.

Be cautious of any debt review removal company that:

• Guarantees to clear your name in days for a flat upfront fee.
• Claims it can remove a valid, active debt review flag without you finishing the process, or can rescind your debt review order. No court can.
• Asks you to pay before the service has been fully performed, or will not give you a written disclosure statement. Section 126A(3) allows neither.
• Will not show its NCR registration number. The NCR says no person, not even an attorney, can provide a debt counsellor's services without being registered.
• Offers you a clearance certificate when your debts are not paid. The National Consumer Tribunal has cancelled a counsellor's registration for issuing certificates on debts that were not paid up.
• Phones you and says it is from the NCR. The NCR will never contact you to discuss your debt review status.

Because most removal firms are not registered with the NCR, the NCR says disappointed consumers have no recourse. That is the reason to be careful before you pay.

Before paying anyone, try the free steps:

1. Get your credit report. You are entitled to one free report every 12 months under the National Credit Act.
2. Check it for an incorrect or outdated debt review flag. The NCR says the flag is not a negative listing, only an indicator that you are under debt counselling.
3. Dispute any error directly with the credit bureau, which is free. The bureau has 20 business days to seek evidence and must remove the information if it is not proven.
4. If you have finished paying, ask your counsellor for your clearance certificate. If you pay your credit providers directly, give the counsellor the paid-up letters.
5. If you were placed under debt review without your consent, complain to the NCR before paying a third party.
6. If you are unhappy with your counsellor, you can transfer to another NCR-registered counsellor at any stage.

Many people do not need a paid removal company at all.

Under the National Credit Act you have the right to accurate credit information and to challenge it free of charge. Complaints about a debt counsellor go to the National Credit Regulator: [email protected] or 0860 627 627.

Complaints about a credit provider or a credit bureau listing go to the National Financial Ombud, which took over the Credit Ombud from 1 March 2024. Its services are free, and you should complain to the provider or bureau first. The ombud's phone number is 0860 800 900.

The NCR's Circular 2 of 2025 warns that most removal firms are not registered, so we cannot point you to a regulator that handles them. If you have already paid one, keep every document and tell the NCR what happened.