Debt Review Removal South Africa: Steps and Expert Insights

Articles | CreditSmart Essential Reading | Debt Review Removals

by Carla Oberholzer

July 11, 2025

What is a Debt Review Flag & Why It Matters?

When a consumer is found to be over-indebted under Section 86(6)(a) of the National Credit Act (NCA), a “debt review flag” is placed on their credit record. This status blocks access to new credit and remains until a Court or reputable debt counsellor confirms that all debts have been settled or that the consumer is no longer over-indebted.

The debt review flag is not removed automatically; even if your financial situation improves. That’s where legal intervention becomes critical.

How to Legally Update Your Debt Review Status in South Africa:

You can apply to the Magistrate’s Court to have the debt review flag removed under Section 87(1)(a) of the NCA, if you were incorrectly placed under debt review or your circumstances have changed,

The legal route for debt review removal South Africa is only available before the debt review process becomes an official Court order under Section 86(7)(c) of the NCA. When your status on the National Credit Regulator (NCR) Debt Help System (DHS) reflects “D4”, you will unfortunately not qualify for the debt review removal process in South Africa, as a Court order is already in place. In this case, it is important to continue making payments, stay in contact with your debt counsellor and request a progress report to help you stay on track. You will be able to work toward qualifying for debt review/credit clearance with commitment and consistency.

Step-by-Step Debt Review Removal Process South Africa

Common Questions About CreditSmart’s Debt Review Removal

Can I exit the debt review process early?

If you can resume original payment agreements or you have settled all your debts, you can exit the debt review process sooner.

Can I cancel debt review on my own?

No. A consumer cannot unilaterally cancel debt review. Only a Court order or a clearance certificate from your debt counsellor can ensure credit bureaus remove the flag.

What if I’ve paid off my debt?

You may qualify for a Form 19 Clearance Certificate. But if the process hasn’t been completed or is stuck, the legal route via the Magistrate’s Court may still be required.

How long does the debt review removal process South Africa take?

Our process is subject to the court’s diary and typically takes three to four months, as the hearing date is allocated by the clerk of the court and falls outside of our control.

Does the full amount need to be settled before the debt review flag is removed?

Yes. The full outstanding amount (including our fees, which cover legal costs) must be settled before we serve the granted order on the National Credit Regulator (NCR) and relevant credit bureaus to update your credit status. Should there still be outstanding fees on your account, we reserve the right to withhold the Court order until payment is complete.

Do I need to appear in court?

No, your legal representative will attend on your behalf.

Can my application for debt review removal be rejected in Court?

Yes, the Court can reject your application. Most commonly, if one or more of your credit accounts are still in arrears. If this happens, you will need to settle the outstanding amounts and may only reapply once your financial situation has improved. It’s important to ensure your accounts are up to date before initiating the process, as this strengthens your case and increases the likelihood of success.

Am I going to be able to obtain credit once my flag is removed?

You are legally allowed to apply for credit again. However, credit providers may still assess your risk based on your credit history, affordability, and previous defaults. Your credit score may still need time to recover, depending on how your accounts were managed during debt review.

Will my credit score improve immediately?

Once the debt review flag is removed and credit bureaus are updated, your score may improve gradually, but this also depends on your broader credit behaviour.

Is this process included in the fees I already paid during debt review?

No, this is a separate legal process and is not covered by your debt review payments.

Will credit providers still see that I was under debt review before?

No. Once the flag is removed, your profile will no longer reflect that you were under debt review. However, your payment history may still show missed payments or defaults if they occurred.

Beware of “Free” Debt Review Removal Scams

The NCR and VHT Attorneys issue multiple warnings about dishonest companies that claim they can remove your debt review status instantly, or for free. These ‘offers’ often come with hidden fees, illegal shortcuts, or fake clearance certificates promises that can leave you in an even worse financial position.

Here’s what to look out for:

Flag #1: “We can remove your debt review instantly”

Legitimate debt review removal involves a Court process and cannot happen overnight.

Flag #2: “You don’t need a Court order or debt counsellor’s input”

By law, only a Magistrate’s Court (under Section 87(1)(a)) or a registered debt counsellor issuing a Form 19 can prove you aren’t over-indebted – no one else can.

Flag #3: Upfront fees without clear documentation

Reputable legal services will explain the full process, requirements, and costs transparently, before asking for payment.

**Remember: If it sounds too good to be true, it probably is.

Our CreditSmart team see too many consumers fall prey to misleading promises. That’s why we work exclusively with NCR-compliant partners and attorneys who follow the proper legal route for debt review removal South Africa.

Want to see if you qualify for debt review removal South Africa?
Let CreditSmart and our legal partners assess your situation. If eligible, we’ll guide you through the Court process legally and efficiently.

Take Control of Your Credit Journey

Debt review was meant to help, not trap you. If your financial health has improved or you were incorrectly placed under review, you have the right to challenge the status, legally. With the right support, the debt review flag can be removed, restoring your credit record and opening new financial doors.

Act NOW: Take the Legal Step Toward Financial Freedom!

Get your Free Debt Review Removal Assessment TODAY.

CreditSmart Financial Services (Pty) Ltd

HANDY RESOURCES

CreditSmart Financial Services: Debt Review Removal Overview.
National Credit Regulator (NCR): debt review removal in South Africa March 2025 circular.
VHT Attorneys: expert tips & legal guidance.