The debt review red flag is a notation placed on your credit profile at all South African credit bureaus when you enter debt review under Section 86 of the National Credit Act 34 of 2005.
When your debt counsellor submits Form 17.1 notifying credit providers of your debt review application, the NCR's Debt Help System (DHS) is updated and the flag transmits to credit bureaus. Any credit provider checking your profile sees that you are in a formal debt restructuring process.
The practical effects of the debt review flag:
• You cannot apply for new credit, credit cards, store accounts, vehicle finance, or home loans while it remains.
• Existing credit facilities are frozen. You cannot increase limits or access revolving credit.
• Credit providers who check your profile before approving applications will see the flag and decline the application.
• The flag does not disappear when you stop paying debt review instalments or close your relationship with your debt counsellor.
On your credit report, the flag appears as an NCR DHS status code:
• Status B: Debt review application submitted and credit providers notified.
• Status C: Assessment confirmed over-indebtedness.
• Status D4: Magistrate's Court order for debt review granted.
• Status F1/F2: Clearance certificate issued, home loan excluded.
• Status G/G1: No longer over-indebted, debt review flag removed.
The flag is removed only when a legally recognised removal event occurs: a Clearance Certificate under Section 71, or a court order under Section 87 or 165. NDRC handles the full process and confirms bureau updates in writing.