FAQs

Who is the NCR?

The NCR, or the National Credit Regulator, is a regulatory body in South Africa established by the National Credit Act 34 of 2005. Its primary purpose is to regulate the South African credit industry and ensure that credit providers and consumers engage in the market fairly and transparently.

What is debt counselling or debt review?

In South Africa, debt review is a formal process introduced by the National Credit Act (NCA) to assist individuals who are struggling with excessive debt. This process involves a debt counsellor assessing the consumer’s outstanding debt and implementing a restricted repayment plan. The primary goal is to help consumers manage their financial obligations and get back on their feet by negotiating reduced payments, interest rates, and fees with their creditors.

What happens when I complete the debt review process?

Several things will take place once you have completed the debt review process in South Africa. Firstly, you will get a clearance certificate (Form 19). Your debt counsellor will issue the clearance certificate and will act as proof that you have settled all your debts.

Your debt counsellor will notify all credit bureaus that you have been cleared from the debt review process. The credit bureaus have five business days to remove the debt review status from your credit profile.

How long does a debt review last?

The duration of the debt review process can vary based on several factors. This includes the amount of debt, the terms negotiated with creditors, and the consumer’s payment capability.

Can I apply if I am unemployed?

In South Africa, the primary criterion for debt review is having a primary source of income. If you are unemployed, it becomes challenging to demonstrate that you can commit to a payment plan with a creditor. It’s always recommended to consult with a registered debt counsellor in South Africa.

Will I be blocked if I go under debt review?

When you undergo debt review, your credit profile at the credit bureaus will be flagged to indicate that you are under debt review. This is not the same as being “blacklisted”. Although, it does serve a similar function: to alert potential creditors that you’re currently in debt counselling. This will result in them not granting you further credit.