Debt review removal request letter (template)

Send this to your debt counsellor in writing. Replace each [PLACEHOLDER].

[YOUR FULL NAME]
[YOUR ID NUMBER]
[YOUR ADDRESS]
[YOUR EMAIL]  |  [YOUR PHONE]

[DATE]

[DEBT COUNSELLOR / FIRM NAME]
[THEIR EMAIL OR ADDRESS]
NCR registration number (if known): [NCRDC NUMBER]

RE: Request to remove me from debt review - reference [YOUR DEBT REVIEW REF]

Dear [DEBT COUNSELLOR NAME],

I am writing to request that you begin the process of removing me from debt
review, on the following basis:

  [TICK THE ONE THAT APPLIES]
  ( ) I have settled all the debts under my debt review plan and I request that
      you issue my [clearance certificate](/debt-counselling/debt-review-clearance-certificate/) (Form 19).
  ( ) Only my home loan / a single long-term debt remains, all short-term debts
      are paid, and I request a clearance certificate and the steps to exit
      debt review in line with the rules.
  ( ) My circumstances have changed and I wish to discuss whether the new facts can be
      put to the Magistrate's Court before a debt re-arrangement order is made.

Accordingly, please:
  1. confirm my current status and outstanding balances under the plan;
  2. issue my clearance certificate (Form 19) once I qualify;
  3. notify the National Credit Regulator and all credit bureaus to remove the
     debt review listing; and
  4. confirm to me in writing once this has been done, and the expected dates.

Please also confirm any final fees due and provide a paid-up statement.

Thank you. I look forward to your written confirmation.

Yours faithfully,

[YOUR FULL NAME]
ID number: [YOUR ID NUMBER]

The clean way out is to finish the plan. Once all your restructured debts are settled - or, in many cases, once your short-term debts are settled and only a long-term debt such as a home loan remains under its rearranged terms - your debt counsellor issues a clearance certificate, known as Form 19. The counsellor then notifies the NCR and the credit bureaus, and the debt review flag is removed.

The other route applies before a court has made a debt re-arrangement order, if your circumstances change so that you may no longer be over-indebted. Your counsellor and you can put the new facts to the Magistrate's Court, and the debt review ends only if the court finds you not over-indebted. You cannot withdraw simply because you no longer want to proceed. Once a court or consent order has been granted, the only way out is to pay up and get your clearance certificate.

The clearance certificate (Form 19) is the formal proof that you have completed debt review or otherwise satisfied the requirements. Your debt counsellor issues it, then notifies the National Credit Regulator and every credit bureau, which removes the debt review flag from your credit profile. After the certificate is issued, your counsellor must file it with the credit bureaus within seven days, and the bureaus must then expunge the debt review record. Check your credit report and follow up if the flag is still there.

Until that flag is removed, the debt review listing blocks you from taking new credit and signals to lenders that you were under debt review. Removing it through the certificate is what restores your ability to access credit again. If you have completed your plan but no one has issued your certificate, that is exactly what this letter, and a follow-up clearance certificate request, are for.

The NCR has warned about "debt review removal" companies that charge consumers up to R10,000 upfront, and says in most cases the debt review status is not removed as claimed. The NCR says removal is not possible once a court has declared you over-indebted, except by paying up and getting a clearance certificate. Under section 126A(3) of the National Credit Act, anyone offering to improve your credit record or remove information from a bureau may not receive payment until the service has been fully performed.

The lawful removal is straightforward: complete the plan, get your Form 19 clearance certificate, and the flag comes off. You should not need to pay a third party a large fee on top of the regulated debt review fees to be removed once you have paid up. If a removal company pressures you or makes guarantees that sound too good, verify everything with the NCR before paying anyone.

• Stopping payments to "force" removal. Defaulting on your plan does not remove you cleanly; it can expose you to legal action again.
• Paying a removal company before checking. The lawful exit runs through your debt counsellor and the NCR, not a paid shortcut.
• Assuming the flag clears instantly. After the certificate is issued your counsellor has seven days to file it with the bureaus; check your report after that and follow up if the flag is still there.
• Not getting it in writing. Always get written confirmation that the certificate was issued and the bureaus notified, and keep it.